MBOMBELA – Mozambique’s crippling economy has had a major effect on the tourism and economic activities of the city over the past few months.
Retailers and hospitality businesses in the city have felt the effects of this deepening crisis in the neighbouring country as less people visit the city for leisure and shopping.
This came to light after the International Monetary Fund and other major donors suspended their financial support to Mozambique. This is due to massive debt incurred by the previous government led by Mr Armando Guebuza.
It was reported that Guebuza secretly made more than US$2 billion in debt, resulting in donors forfeiting their contributions to the country as early as June.
The province shares a border with Mozambique, as well as many other ethnic interests. Mbombela in particular, has been a host to many Mozambicans who flood the city for leisure and to purchase goods ranging from electronics to brand clothing, among others.
The demand has been so high that various shopping outlets were compelled to hire Portuguese-speaking assistants to help with the huge number of Mozambican visitors.
Weekends and Mozambican national holidays have been very profitable for Mbombela businesses. However, the past three months have seen a massive decline in the number of visitors to the city, weakening this foreign economic injection considerably.
Mpumalanga News interviewed various businesses in the area to determine the impact that Mozambique’s economy has had on them.
An employee at an electronic shop at one of the city’s malls admitted that this plight has had a very adverse effect on business.
“We don’t get Mozambican shoppers like we used to. Previously, we would get about 10 customers a day, but now it is down to about one or none at all. They used to buy in large quantities, but it is no longer the case,” said the employee.
Another staff member at an exclusive brand-clothing shop agreed. “The exchange rate is now high in Mozambique and everything is expensive. They are having a tough time and we are feeling it too. In some instances, one person would spend about R12 000 per day and that’s a lot of money to lose.”
Owner of Shayivela Taxi Services, Mr Daniel Mhlongo also shared the same sentiment. “Business has been really bad compared to when Mozambicans flooded the city. Lately, a whole week goes by without getting a trip to the airport. They helped me to grow my business so much as they used to support me tremendously,” Mhlongo added.
Ms Heila Weiss, store manager at Mopani, said the pharmacy had not been affected that much.
I’langa Mall’s centre manager, Ms Sandi Human admitted that Mozambicans have helped to stimulate the economy and growth of Mbombela.
“We have always been blessed in this city, but lately we are feeling the pinch, however, we have to adjust to the situation. Our mall boasts real shoppers, not browsers, and Mozambicans love good stuff, but these are tough times. We will survive and as time goes on, it will get better,” said Human.
It is not clear when the economic situation in Mozambique will improve, but many businesses in the city are hoping that it will be sooner, rather than later.
