With Small Businesses Grounded by Border Closures—Some Turn to Smuggling Goods To Sustain Income

Zimbabweans use illegal entry into SA to shop for groceries amid border closure. Image by Thapelo Morebudi | Sunday Times Live

by Lizwe Sebatha

Small enterprises were among the first sector to feel the pinch of the border closures due to the coronavirus. With no clear sign of when borders will fully re-open, some have decided to find illegal alternative means to keep afloat.

MATOBO, August 24, 2020. (The Citizen Bulletin) — SMALL grocery and hardware shops in rural Matabeleland South are taking a huge strain from the continued closure of borders amid the COVID-19 pandemic as they struggle to restock goods for resale.

South Africa and Botswana are the main source markets for most of the grocery and hardware shops for communities in the periphery of Zimbabwe’s borders in Matabeleland South.

Aleck Moyo, who runs a small hardware shop in the Khalanyoni area, Mangwe district, says the future looks depressing as he struggles to restock owing to the COVID-19 induced border closures.

“OMalayitsha would bring me an assortment of groceries and other goods for resale every fortnight before borders were closed.”

Aleck Moyo, small shop owner

Moyo worries about whether he will be able to get supplies once his stock runs out.

Cross-border transporters commonly referred to as Omalayitsha are the preferred mode of transport for many locals not only in rural Matabeleland but also in Bulawayo.

With the COVID-19 induced border closures, oMalayitsha have also had their business grounded, with many now turning to offering local commuter transport services to make ends meet.

The Rand is the trading currency of choice in most parts of Matabeleland, Maphisa included, prompting many shop owners to import goods from South Africa for resale using that country’s currency.

“It does not make any sense for me to travel all the way to Bulawayo to purchase hardware goods for resale here since things are expensive in that city.”

“For example, how much will I sell a bag of mealie-meal here if I buy it in Bulawayo factoring in things like transport?” Moyo asks.

A number of small to medium enterprises in Maphisa have bemoaned the continued closure of borders, they say their businesses face a little chance of survival.

Maphisa is just one of the many affected areas in the province, with approximately one thousand small businesses affected.

A visit to Maphisa shows that while some traders still accept the Zimbabwe dollar, the pricing forces consumers to prefer transacting in Rands owing to the affordability of goods and services in that trade currency.

The majority of shop owners do not accept mobile money payments such as EcoCash and OneMoney.

“We are pleading to the government to support us and save our businesses. We feel borders must be re-opened for even small players like us as we also contribute to economic growth through taxes.”

Aleck Moyo

While other shop owners bemoan lack of budgetary support, a shop owner (name supplied) at St Joseph area, says he has kept his business running through use of cross-border smugglers for supplies.

“There are risks associated, but that is the only way my family business can survive,” the shop owner who could not be named to protect his identity said.

He refused to shed light on the smuggling points used by the smugglers to transport his goods and products to the country.

“The downside though is that goods brought by smugglers attract a fee, the costs of which I pass onto the consumer.”

Smuggling is rife at the country’s borders, the government recently revealed plans to deploy drones to fight the practice.

Industry and Trade minister Mangaliso Ndlovu acknowledges the challenges being faced by small enterprises because of COVID-19.

“Those that have been affected are those small players who were in clothing industries and small grocery shops,” Ndlovu said on Wednesday.

“Those that were registered are getting (bailout) packages but that is not under my ministry you can check from the Ministry of Small and medium-sized enterprises (SMEs), they can assist you with more information.”

Small to Medium Enterprises minister Sithembiso Nyoni has said the government has availed a ZWL$25 million of funding to help SME’s revive businesses affected by COVID-19.

“We have a recovery fund for SME’s. We have availed ZWL$25million through the Women’s Bank. It is open to all SME’s across the country,” Nyoni says SMEs are welcome to apply for emergency funding.

The ZWL$25 million is part of the ZWL$18billion stimulus package announced by President Emmerson Mnangagwa on May 1.

The government has said borders will remain closed except for returning citizens and cargo but for small-time business players, the waiting is painful.

“We hope it will be sooner than later,” Moyo says.

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