Online Reporter
Ray Bande
Senior Reporter
THE ongoing Israeli-Hamas conflict in the Gaza Strip is having far-reaching consequences for businesses in Manicaland and broader SADC region as motor vehicle parts dealers, industry, and agro-business sectors that rely on exports and imports to the Middle East via the Suez Canal are facing significant disruptions.
The Suez Canal – a critical shipping channel – offers a direct and cost-effective route between the Middle East and Southern Africa.
However, the Gaza conflict has led to attacks on ships in the Red Sea by Houthi rebels, forcing shipping companies to reroute vessels around the Cape of Good Hope.
The detour adds considerable time and expense to shipments, increasing fuel consumption, freight rates, and insurance premiums, and as a result, many businesses in the region are experiencing extended transportation periods or, in some cases, complete cancellation of transactions.
The conflict’s impact on global trade is significant, with increased risk and insurance costs making the Red Sea route less attractive.
As the situation continues to unfold, businesses in the SADC region remain vigilant, seeking alternative solutions to mitigate the effects of the conflict on their operations.
A survey conducted by this newspaper in Manicaland has revealed that the ongoing Gaza conflict is severely impacting local businesses, with some goods being delayed for months. This has resulted in dealers and business entities either cancelling transactions or incurring increased costs.
According to trade maps, Zimbabwean companies typically export minerals, tobacco, tea, coffee, hides, and skins, as well as fruits and vegetables, to Dubai and the UAE. In return, the country imports petroleum products, fertilisers, motor vehicle spares, data processing machinery, agricultural implements, and equipment, including crude soya oil.
Motor vehicle traders in Manicaland have been particularly hard hit, with some going for months without basic products in stock. The conflict in Gaza has increased the security risk for cargo from the Middle East, exacerbating the challenges faced by local businesses.
ZimTrade Eastern Region manager, Mr Admire Jongwe said: “The vigilante activities and insecurity in the Suez Canal, the primary route linking Africa and the Middle East, have been exacerbated by the Middle East conflict. This has impacted ships transporting goods between Africa and Asia. As a result of these security concerns, ships plying this route are hiring additional security personnel and contracting security services from other nations or providers.
Moreover, most ship operators have diverted away from the Suez Canal, incurring significant cost implications for goods imported to or exported from Africa. For Zimbabwe, exports to the Middle East are now taking a longer route, affecting the competitiveness of Zimbabwean goods. Zimbabwean companies exporting to the Middle East are concerned about this development.
Some have reduced exports, while others have halted them entirely. Those still exporting have resorted to longer, costlier routes, increasing the cost of their products.”
Zimbabwe National Chamber of Commerce Manicaland president, Mr Kudzai Makore also acknowledged that businesses have been facing challenges due to disruptions along the Suez Canal.
“Yes, various entities have expressed concerns over delays in receiving consignments owing to the Gaza conflict, which has posed a security threat to ships using that route. This has affected, not only the vehicle parts industry, but several others sectors,” he said.
Manicaland Confederation of Zimbabwe Industries (CZI) president, Mr Barnard Makoni also admitted that the Suez Canal shipping route has been experiencing security challenges, impacting consignments destined for Africa, Southern Africa, and Zimbabwe.
“Security issues along shipping routes and volatile fuel prices, linked to major suppliers in that region, have affected the local industry. Many have been affected by delays of over four months, resulting in cancelled deals. While smaller tools and machines can avoid those routes, it is not feasible for heavy-duty machinery, leaving some companies to face these challenges,” he said.
Although business is generally slow, some companies in the timber and mining industries, such as Border Timbers, Wattle Company, and Allied Timbers, are retooling and recapitalising, seeking to import heavy-duty machinery to boost operations.
Players in the vehicle motor parts retail business, who appear to be the hardest hit, told The Manica Post that business has come to a standstill.
Mr Godknows Mtetwa said: “It is sad that business has come to a standstill here. We ordered two containers of various vehicle spare parts that were scheduled to arrive last month, and indications are that we can only be able to receive that consignment next month, earliest possible time. This is a delay of three months and it is not good for our business as can no longer supply our clients.”
