Small businesses across the nation are voicing their concerns regarding the relentless surge in fuel prices following the latest adjustment this week. The palpable anxiety emanating from these small business owners stems from the growing challenge of sustaining their daily operations, given the indispensable nature of fuel in their delivery-driven activities.
Tebogo Mogorosi, proprietor of a quaint bakery nestled in the heart of Gaborone, elucidated the quandary faced by entrepreneurs like himself. While fuel costs continue their ascent, small businesses find themselves caught in a precarious conundrum, unable to pass on these additional expenses to consumers, as it might alienate their loyal customer base.
In Mogorosi’s words, “Coming on the back of harsh economic conditions left by Covid-19, it was always bound to be difficult to adjust prices every now and then because people are yet to recover.” Despite hopes for government intervention to alleviate the burden, such support has remained elusive. As Mogorosi elaborates, he grapples with the daily task of delivering bread to various locations, particularly for street vendors who are themselves feeling the pinch. The net result? A loss of clientele, as some customers opt to purchase from more cost-effective retail outlets.
The prospect of increasing prices to cushion the escalating fuel expenses seems equally unviable for Mogorosi, as it could further erode his customer base and drive potential clients towards cheaper alternatives.
Similarly, Amogelang Mathibe, who operates a mobile kitchen, bemoans the recent fuel cost increase, which compounds her business woes. Her fast food enterprise relies heavily on mobility. With rising fuel prices, Mathibe fears her ability to traverse the city as frequently as before may be compromised, ultimately leading to a decline in her revenue.
“I make a living through moving around Gaborone to sell fast food but now when I think of increased fuel cost, I wonder if I will be able to move around as often as I used to, and that can only mean one thing: my revenue is going to decline,” laments Mathibe. She points out that the meager profits generated are now at risk of being swallowed by fuel expenses, thereby thwarting her aspirations for sustainable growth.
Mathibe, like many others, implores the government to step in and subsidize fuel costs for small businesses, recognizing the perilous financial landscape they navigate daily. “We are trying by all means to generate revenue so that we can maintain our staff complement, but our efforts are defeated by some of these external factors,” she adds.
Mooketsi Segopolo of Mocks Deliveries paints a similarly disconcerting picture. In response to the escalating fuel costs, Segopolo had little choice but to recalibrate his delivery fees, a move that has regrettably driven some clients away. “I had no choice but to adjust my fees as well, even though I knew it was bound to happen,” Segopolo admits. “I hope the situation will get better so that I can also reduce my delivery service fee,” he optimistically concludes.
In the midst of these mounting challenges, small business owners find themselves walking a tightrope, striving to sustain their operations and profitability while grappling with the unwavering ascent of fuel costs, all against the backdrop of a post-Covid-19 economic landscape that remains far from stable.
