BLEAK EASTER IN A DEPRESSED ECONOMY
It’s been well over a year since life, as we knew it pre-covid, got back to normal, but one thing is certain: the economic impact of the pandemic on the average Motswana remains evident.
A sharp rise in the cost of food, fuel/public transport fares and rentals - against the backdrop of high unemployment, stagnant wages and significantly low or cautious spending - means that this Easter holiday there will be no Easter eggs and adventure travels as many Batswana struggle to get their basic needs met.
In this conversation with women across the city, BOITUMELO MASWABI finds out just how tough the going is getting.
Charity Phodiso, 35, Mahalapye
I am struggling to make profit in my business. Even prior to government reverting to the 14% value added tax effective 1st April, prices have been going up almost weekly. Wholesalers have increased their prices by even way more than 2%. As a street vendor, it’s impossible to hike prices because I have to stay competitive. If I dare increase, I’ll definitely lose customers to another vendor down the road because their prices are more attractive. Sometimes I’m forced to stock up on popular items, which might not necessarily be profitable, just to ensure I have a satisfactory flow of customers, in the hope that they’ll pick something else while here. It always works best that way. For example, I used to buy these chips for P38 - just last year - now they cost a whopping P54! Where I used to make a profit of around P25, I now get P2. I believe big wholesalers are taking advantage because they realise these particular items are in high demand. This is very discouraging for small business owners. Government should have extended the VAT reduction because we’re yet to fully recover from the Covid crisis, otherwise it’s going to put many out of business. Schools closed today, so that’s a further decline in profits since my biggest clients are school-going children.
Boitshoko Aleck, 43, Butale
I’ve been running this tuck shop since October 2019. Life has been tough and it looks like it’s only going to get tougher, especially for the informal sector and us women. I hardly manage to pay rent, let alone afford food or transport fares for my children. You will recall that BHC, from 2020, increased rentals twice and had threatened a third increase this year. Taxi operators will soon increase their fares, too, and vegetables, which we used to resell, are either unavailable or expensive. Some of the fastselling items in the tuck-shop are the 250ml bottle of oil and smallest packet of chips. Customers can only afford this P20 bottle of oil, and not the 2l one which sells for P65; even Standard 1 kids as young as 6 years complain that their favourite chips are expensive, that should give you a clear picture that everyone is affected. Government must do something about this situation.