Inflation bruises businesses, informal traders in Namibia

WINDHOEK, April 26 — Inflation is weighing on many informal traders in Namibia, bruising their earnings.
Ndino Kashinasha operates from a stall at a local market in Namibia’s capital, Windhoek. Her niche fast food products of fried fish and potato chips have earned her a substantial income over the years. But the recent price increases in transport and commodities, especially cooking oil, are thwarting her business.
Namibia’s annual inflation rate for the month of March reached 4.5 percent, up from 3.1 percent recorded in the same month last year.
The country’s monthly inflation rose to 0.5 percent in March, compared to February’s 0.2 percent, according to Namibia Statistics Agency.
“The high price of cooking oil and utilities, key in preparing meals I sell, has subsequently increased the production cost,” Kashinasha said on Sunday.
She was forced to raise the prices of food items sold, which has hurt her business.
Even after the full opening of economic activities after many COVID-19 lockdowns and restrictions, surging inflation and related risks have kept traders on edge.
“Just when we thought we would recover from the negative effects of COVID-19 restrictions, inflation has sent us in survive-mode on the business front,” Kashinasha said.
David Tomas, who sells fresh produce and vegetables at an informal market in Windhoek, also felt the pinch.
He said higher transport and delivery costs have battered the supply chain and his business operations.
“As I source my products through an intermediary, I have to pay an extra 10 percent toward transport and delivery,” Tomas said.
Like Tomas, many traders face the hurdle of expectations of lower prices by clients who turn to the informal markets for a bargain.
“Some strains remain,” he said.
To cut costs, Kashinasha has taken to social media platforms to sell her popular fish and chips.
“I also hope to introduce meal packages that do not require that much oil during preparation,” she said.
Tomas, meanwhile, is exploring ways to shift the supply chain by sourcing fresh produce from nearby farmers. “That way, I might save on transport costs.”    (Xinhua)