Oshikango businesses fighting to keep afloat

BUSINESSES at Oshikango are fighting to stay afloat, while people who lost their jobs are found wandering around the town’s streets. Others have resorted to selling fruit and vegetables to make a few bucks.

Oshikango was the busiest border town in the country. But now, business between Angola and Namibia, which ten years ago generated about half-a-billion dollars a month, has all but collapsed.

On 10 August when The Namibian visited the area, the exchange rate stood at 12,29 kwanzas to one Namibia dollar. In December 2015, it stood at 8,7 kwanzas to one Namibia dollar.

It has been reported that this slowdown is the result of the global economic downturn and low oil prices, which have eroded the buying power of the Angolans who used to drive business at Oshikango.

So dire is the situation that every second Angolan national one meets is selling tomatoes, sugarcane, pineapples or any type of fruit in order to get Namibia dollars, which is a stronger currency.

Several young men who once depended on Angolans who bought Namibian goods at Oshikango said they previously transported goods with their bakkies to the Angolan side of the border.

Max Jonas joined the transport business back in 2011. He and fellow transporters ferried vegetables, furniture and many other commodities.

“It is all dry now. Oshikango is dead,” he said to the laughter of others present. He explained that during peak times, he made up to N$1 000 a day.

Now, according to him, he makes only N$200, if he is lucky.

“Like today, none of us made any money. I just want to go and sleep,” he decried the situation.

During our visit to the border town, Jonas’s bakkie could be seen parked along with those of his friends and co-workers.

Many businesses have closed down, which has resulted in massive job losses. The head of the Namibia Chamber of Commerce and Industry’s Oshikango branch, Frieda Shikangala, said just last week, International Commercial retrenched about 120 workers.

Fysal, Figna as well as Fatima Plastic also laid off some workers about three months ago.

Shikangala said the businesses in the town relied on Angolan customers, who now do not have the spending power anymore.

One of the employees at the Piscas Restaurant & Motel, Canner Abner, said they have 24 rooms at the motel, but often only about three are booked by customers.

Abner said the normal price for a double room is N$500, but they end up giving the rooms away for N$300.

“A single room is N$450, but we give it for N$200 now. And that just means we do not make the desired profit, but one just settles for the money to keep paying the bills and workers,” she noted.

Martha Nande said they wait in vain for customers, whereas in the past they would be be busy non-stop.

“Today, we only have one room booked for the guests you saw coming in. They might not even pay full price,” Nande said.

She was quick to say that they are lucky as their employer has not laid off anyone, despite struggling to make ends meet. She said they can only hope the situation will improve soon.

Nande said waiters getting tips has also become something of the past, causing a reduction in their earnings.

“At other times, we also struggle with transport because you have to spend the little money you have made while waiting for the salary,” she stated.

Ndapandula Shifeta said she only realised last year that the Angolans really kept their business going. She thus pleads with Namibians to travel more and visit motels.

“Namibians are not keen on spending their money. Most of our customers were Angolans,” Shifeta said.

For now, the employees are hoping God will hear their pleas, and the situation will return to normal soon.

A sales representative for Lewis Stores, Nandi Shaanika, had a different idea about the situation, saying that business was going well for them. Shaanika said they opened the Lewis branch in May this year when Ellerines closed shop, and business has been slowly picking up since then and has not gone down.

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