Businesses panic amid Zimbabwe unrest

Economics Association of Malawi (Ecama) says the Zimbabwe unrest could trigger scarcity of some imported commodities,  resulting in increased prices due to high transportation costs.

This comes as Malawian traders using road transport through Zimbabwe to and from South Africa are unable to proceed as protestors of the unprecedented Zimbabwe fuel hike reportedly blocked roads.

The development forced transporters, mostly buses and tracks, to cancel their trips.

Ecama president Chikumbutso Kalilombe said in an interview that this is so because Zimbabwe is one of Malawi’s major trading partners and that Malawian cross-border traders mostly use the Zimbabwe route because it is direct and cost-effective.

He said apart from high transport costs, the unrest has resulted in restrictions of goods and services that can pass through, changes in road taxes and number of days transporters can be allowed to stay in the mentioned countries which can be an inconvenience.

In a separate interview, Cross-Border Traders Association president Esther Tchukambiri said businesses are losing out as they cannot travel to Zimbabwe and mainly South Africa where they order most of their goods to supply in the country. Ministry of Industry, Trade and Tourism Spokesperson Mayeso Msokera said government is aware of the unrest in Zimbabwe but was yet to ascertain how it may affect business in Malawi and the economy in general.