‘People won’t die of corona, but of hunger’

LEANDREA LOUW AND OGONE TLHAGE





WALVIS BAY



As the Erongo Region readies to drag government to court over the stage one lockdown that is only expected to end at midnight on 22 June, the Covid-19 regulations are having far-reaching and devastating effects on local businesses.

Business owners and staff both say that people won’t die of the coronavirus, but of hunger.

Casa Mia Hotel owner Andreas Maischatz had indicated before the extension of the lockdown that he would have to lay off 32 workers and close the Walvis Bay hotel if the restrictions were not lifted.

“We are earning N$2 000 a day with which we can barely survive. Our reserves are depleted; the bank can't help us with a loan, so we have to take the punch. Even if Walvis Bay was lifted to phase three, it would take months before we can recover. I worry about my staff being left without income," he said.



Unable to pay

“We already retrenched people and ran out of reserves before Covid-19 struck. We had to survive for two months with no income while our expenses kept coming. With no state support, we were on our knees after the first lockdown. For now, we will be using employees as needed only,” said a representative of a brick factory at the coast.

Another business owner, Sharmine Livingstone, said 90% of her business is based on tourism. “This includes our tented camps, desert dinners and weddings we cater for. Since the borders closed, we have been without business and without an income.

“As for our local business, which consists of weddings and corporate events, these were stopped by government.”



Schools not spared

According to a local private school principal, her school may need to close by the end of this month.

“In addition, the safari business my husband owns is barely surviving. We have had no income since March when the lockdown started and borders were closed. Nobody wants to spend their money on luxuries at the moment because they have to pay rent, buy food and care for their families.”

She added that she has been unable to pay the rent for the school premises for three months now.

“I had to cut salaries of the staff members by 20% to 25%. I do not know what will happen at the end of this month. I might have to let some of the teachers go since many of the parents also gave notice that they are going to keep their kids at home till the end of the year.”



Extreme poverty

In light of what’s happening, Namibia will find itself in the clutches of extreme poverty, the principal says.

“People won’t die of corona, but of hunger. This is the reality. There are many small businesses that closed down in March already.”

Poena Olivier, the owner of Magic Discounters in Walvis Bay, says he may have to retrench 30 of his employees.

“We won’t close but we might need to retrench. Magic Discounters strives to produce 60% of its goods in Namibia. With the lockdown, sales are down and no one is allowed to work, so it has now become cheaper to just import. Why would I still want to have factories manufacturing goods in Walvis Bay when it is impossible to do business?”

Olivier also questioned the rationale behind the authorities saying businesses should use their reserves.



Lockdown court battle

Walvis Bay lawyer Thersius Biermann is forging ahead with plans to drag government to court.

He said consultations with government were also currently taking place.

“We are consulting in Windhoek to determine the best way forward. We want to move to stage three of the lockdown regulations. If government is unwilling, we will have to approach the High Court on an urgent basis,” Biermann said.



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