Cyclone threatens jobs prospects, says Ecam
Employers Consultative Association of Malawi (Ecam) has expressed fear about the outlook for the employment landscape following Tropical Cyclone Freddy which hit the country last month.
In a write-up on Monday, Ecam executive director George Khaki said that some companies and employers, including those in the impact areas, have been directly affected by the cyclone.
He said the value chains that supply companies have also been affected, a development which compromises employers’ ability to hire.
Said Khaki: “A lot of workers have also directly been affected, thus they are not able to go to work and in other instances, they have lost lives.
“Also, the people affected are consumers of our goods and services. This will affect demand for goods and services and capacity to employ.”
He said the cyclone has also had a devastating impact on infrastructure, including roads, which has affected supply and delivery logistics for companies.
Khaki said Ecam is currently working with International Labour Organisation to carry out a study on the actual extent of the effect of the cyclone on employment.
Malawi Confederation of Chambers of Commerce and Industry president Lekani Katandula in an interview also indicated that the disruption caused by the cyclone is immense for business.
He said: “For the southern part of Malawi, we have roads being cut on top of no power in the process significantly reducing production and sales.”
“Already, industries are struggling with power challenges where power generation has also been affected by the cyclone in the process worsening the already challenging power supply status.”
On the other hand, Malawi’s economy has been significantly weakened by a series of exogenous shocks and persistent macro-economic shocks which are affecting businesses.
Meanwhile, Reserve Bank of Malawi (RBM) has painted a gloomy picture on the economic prospects for the country due to the impact of Tropical Cyclone Freddy.
According to RBM Governor Wilson Banda, by 2023, real gross domestic product which is expected to rebound and grow by 2.7 percent from 1.2 percent will be revised downwards to incorporate effects of Cyclone Freddy.
