Approximately 400 workers at gas stations in Mozambique have had their contracts suspended due to vandalism from post-election protests, with 10 stations remaining inoperative. The Mozambique Fuel Retailers Association states that rebuilding efforts will depend on political stability, and skepticism exists regarding the viability of a recent government credit line.
In Mozambique, approximately 400 workers have experienced contract suspensions due to damage at vandalized gas stations. Currently, 10 of these stations remain non-operational following extensive vandalism during post-election protests, with reconstruction reliant on a stable political climate in the nation.
The aftermath of the protests includes scattered broken glass and destroyed equipment, affecting not only fuel pumps but also convenience stores, which faced complete looting. Nelson Mavimbe, President of the Mozambique Fuel Retailers Association (ARCOMOC), reported that many facilities remain closed and assessment of the damage reveals some stations were entirely destroyed, hindering their potential to resume operations.
During the unrest, a total of 30 gas stations suffered either full or partial destruction, with ten still unable to reopen. Mavimbe stated that the recovery process is intricate and ongoing demonstrations pose challenges to restoring the damaged sites. The suspension of contracts for workers arises from these operational difficulties, with each gas station employing approximately 40 individuals.
Currently, there are no established timelines for the reopening of these gas stations. Mavimbe expressed concerns that any repairs undertaken might be short-lived if protests resume targeting restored facilities. He emphasized the necessity of re-establishing stability to facilitate effective repair efforts.
In light of the recent Government announcement of a credit line of 10 billion meticais, the Fuel Retailers Association voices skepticism regarding its viability for those heavily impacted. Mavimbe remarked that such funding appears unsustainable for businesses starting from a position of total loss, especially when considering prior investments that relied on bank financing. To sum up, until there is significant political and social stability in Mozambique, the future for gas station managers and their workers remains uncertain, with no clear indicators on when normal operations will resume.
The situation in Mozambique is critical following the vandalism of gas stations, leading to significant labor disruptions with 400 workers impacted. The lack of operational stability and ongoing risk of protests complicates reconstruction efforts. The recently proposed financial solutions appear inadequate to address the losses incurred by gas station owners. Without a return to political and social stability, the future for these businesses and their employees remains uncertain.
Original Source: clubofmozambique.com
