In Mozambique, post-election protests have led to the vandalism of gas stations, resulting in 400 workers having their contracts suspended. Ten stations remain inoperative, hampering recovery efforts that rely on improved political conditions. The Fuel Retailers Association expresses doubts about the sustainability of government credit lines for recovery.
In Mozambique, approximately 400 employees at vandalized gas stations have had their contracts suspended due to the ongoing inoperation of ten gas stations affected by post-election protests. The Mozambique Fuel Retailers Association emphasizes that reconstruction efforts are contingent upon the enhancement of the political climate in the nation.
The destructive aftermath of the protests is evident, revealing shattered glass and looted convenience stores. Nelson Mavimbe, president of the Association of Fuel Retailers of Mozambique (ARCOMOC), noted that the extensive damage has rendered fully vandalized stations incapable of resuming operations. He stated, “The photographs show gas stations that were completely vandalized and some that were partially vandalized. In the current situation, those that were completely vandalized have no way of returning to operations.”
At least 30 stations experienced significant damage with ten still closed. Mavimbe remarks on the complexity of recovery, making it difficult to assure restoration of the impacted sites given ongoing demonstrations. He explained that, on average, each gas station employs about 40 workers, leading to approximately 400 employees having their contracts suspended.
Currently, there are no forecasts for the reopening or reconstruction of these vandalized stations. Mavimbe cautioned that restored facilities risk being vandalized again without the reestablishment of stability. He stated, “Stability needs to be re-established to allow for the damage to be repaired.”
The Fuel Retailers Association has expressed skepticism regarding the recently announced 10 billion meticais credit line from the Government, deeming it unsustainable for those who have lost nearly everything. Mavimbe concluded, “We do not think these lines of financing are sustainable for those who have lost everything. In fact, it is not even starting from scratch, because the investment that is currently being made was the target of a request for bank financing.”
Until social and political stability is achieved, it remains uncertain when the affected gas stations will resume operations, leaving managers in a precarious position.
The situation in Mozambique’s fuel retail sector is dire, with the violent protests leading to significant operational disruptions and employee contract suspensions. The necessity for political and social stability is paramount for recovery efforts. The skepticism surrounding governmental financial assistance highlights concerns about the sustainability of support for affected businesses. Without a resolution to the ongoing instability, the future of the impacted gas stations remains uncertain.
Original Source: clubofmozambique.com
