Businesses crippled by floods

ONGWEDIVA – The Namibia Chamber of Commerce and Industry (NCCI) is extremely worried about the effect of the floods on business and on the employment opportunities created by local entrepreneurs.

NCCI Chief Executive Officer, Tarah Shaanika, said this at a press conference held by the organisation at Ongwediva on Thursday. Shaanika told reporters that the floods had forced many businesses in the flood-affected regions such as Oshana, Ohangwena, Omusati and parts of Oshikoto to close down.As such, Shaanika said, many businesses are experiencing significant reductions in their income and the business environment has increasingly become difficult.Many businesses are expected to declare losses this year.Many flood-affected businesses in the north would find it difficult or impossible to serve their loans in the next couple of months due to the floods, Shaanika said.”We therefore call on the financial institutions to consider restructuring loans of the affected businesses and allow them to recover after the flood situation has improved,” Shaanika pleaded.At the same time, Shaanika said, the NCCI calls on local authorities to review municipal rates and taxes imposed on the affected businesses and to allow them to recover.He explained that many of the closed businesses do currently not use municipal services and as such it will only be fair to consider exempting them for the period which they are not using municipal services.The NCCI is concerned that unless the affected businesses are given some tangible relief, some may close down permanently, resulting in a low level of economic activities and loss of jobs, said Shaanika.In this regard, the business chamber’s CEO emphasised that necessary efforts must be made to preserve every job that could be created since the country already faces economic challenges and a high unemployment rate.Said Shaanika: “The NCCI will therefore engage all stakeholders which may be of any assistance to provide relief to businesses in order to improve the business environment in the regions which had been made ugly and unfriendly by the floods”.He called on affected business people to register themselves with the Chamber’s Ongwediva office to enable the NCCI to complete its flood assessment and to make necessary recommendations to the authorities, financial institutions and other stakeholders.Shaanika’s visit to the flood-affected regions was aimed at assessing the impact of the flood on operations of the NCCI’s members.NampaShaanika told reporters that the floods had forced many businesses in the flood-affected regions such as Oshana, Ohangwena, Omusati and parts of Oshikoto to close down.As such, Shaanika said, many businesses are experiencing significant reductions in their income and the business environment has increasingly become difficult.Many businesses are expected to declare losses this year.Many flood-affected businesses in the north would find it difficult or impossible to serve their loans in the next couple of months due to the floods, Shaanika said.”We therefore call on the financial institutions to consider restructuring loans of the affected businesses and allow them to recover after the flood situation has improved,” Shaanika pleaded.At the same time, Shaanika said, the NCCI calls on local authorities to review municipal rates and taxes imposed on the affected businesses and to allow them to recover.He explained that many of the closed businesses do currently not use municipal services and as such it will only be fair to consider exempting them for the period which they are not using municipal services.The NCCI is concerned that unless the affected businesses are given some tangible relief, some may close down permanently, resulting in a low level of economic activities and loss of jobs, said Shaanika.In this regard, the business chamber’s CEO emphasised that necessary efforts must be made to preserve every job that could be created since the country already faces economic challenges and a high unemployment rate.Said Shaanika: “The NCCI will therefore engage all stakeholders which may be of any assistance to provide relief to businesses in order to improve the business environment in the regions which had been made ugly and unfriendly by the floods”.He called on affected business people to register themselves with the Chamber’s Ongwediva office to enable the NCCI to complete its flood assessment and to make necessary recommendations to the authorities, financial institutions and other stakeholders.Shaanika’s visit to the flood-affected regions was aimed at assessing the impact of the flood on operations of the NCCI’s members.Nampa