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Middle East conflict spillover hits DRC SMEs
Transcript
00:08The travel industry in the Democratic Republic of Congo is feeling the ripple effects of
00:14a war over 4,000 kilometers away.
00:17Hundreds of flight cancellations and the ongoing tensions between the U.S., Israel and Iran
00:22have hit many businesses hard.
00:28Many people travel to Dubai, especially from Kinshasa, but the war has significantly changed
00:33things and affected our income.
00:35I think if it continues, it will be terrible for small-scale businesses like ours in the
00:39travel sector.
00:41Claudie Bafunibio says business has plunged by about 40 percent.
00:47Other traders who rely on imported products are also grappling with higher costs and lower
00:52revenue.
00:53Many cars they ordered before the conflict began are still stuck in the United Arab Emirates,
00:59which has forced them to increase prices.
01:03There's a scarcity of cars in Kinshasa at the moment which has pushed prices up.
01:08Cars that used to cost $8,000 are now sold for $10,000.
01:12One trader told us that the higher price tag is driving down sales, partly because prices
01:19on other commodities are also rising.
01:21According to Congolese authorities, the DRC spends $3 billion annually on food imports alone,
01:29because it has very few industries.
01:31That dependence on imports has rendered its economy vulnerable to external shocks.
01:38Our country will bear the full weight of this war's consequences, with little or no room to respond
01:44effectively. Our limited influence in international markets will unfortunately leave our country
01:50with very few options.
01:51Some affluent traders have resorted to importing products from China and Europe at a higher cost.
01:58The DRC government has only assured the public of a steady fuel supply amidst global uncertainties.
02:06And so, many small-scale traders will have to struggle on their own to weather the storm.
02:12What began as a regional crisis in the Middle East has now become a problem for these Congolese traders
02:18and many others around the world.
02:21They hope the US, Israel and Iran will strike a deal soon
02:25that ends the conflict and enables them to continue their business.
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