Rising costs hit informal traders

As inflation continues to push up the costs of goods and services, informal traders in Francistown say they are a facing increasing pressure in keeping their businesses afloat. The traders have expressed disappointment and frustration on how the rising prices is affecting them. In an interview, Mr Gala Kgosiemang who is in the business of selling clothes said inflation was eating into his profits as he now buys stock at higher prices.

Mr Kgosiemang said the rise in the purchase price of goods and the accompanying upward swing of transportation costs was becoming a daily reality. He added that the Pula depreciation had also led to them purchasing lower quantities of goods than they usually did. “The rising costs of goods has forced us to increase prices for our products in order for us to gain something,” said Mr Kgosiemang.

However, he said increasing their selling prices had resulted in receiving fewer customers every day as affordability was a challenge to most people. He added that his regular customers were buying less than before as their priorities had shifted towards essential needs like groceries. Mr Kgosiemang said the slow business hindered their businesses from expanding and negatively affected their dream of being able to effectively contribute to the local economy.

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Another informal trader, Ms Tumisang Kemoabe who sells fast foods and drinks similarly lamented the situation, and has attributed the slowness of business to the rapidly and unexpected rise in the price of the products she uses for her business. “Today you go to stores and purchase flour and oil at this price, tomorrow when you return the prices have increased”, she said, highlighting the sad reality that her business is grappling with. She also explained that the increased prices had forced her to reduce the amount of serves, which was also impacting the business negatively as it drove away customers who felt that the food was no longer worth their money.

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