Nyabugogo businesses lose Rwf178m to flooding annually, shows survey

Researchers have warned that small businesses around Nyabugogo River, Gatsata and other water catchment areas in Kigali could face further losses due to flooding if no urgent actions are taken to address the problem. The warning follows a survey on how small businesses in Kigali are being affected by recurrent flooding, which indicates that the areas experienced losses estimated at Rwf178.2 million in direct and indirect damages caused by floods. The survey was conducted between August and October 2015 under the project, “Building resilience in Rwanda through business collaboration,” and funded by Climate and Development Knowledge Network (CDKN). The project is being implemented by Institute of Policy Analysis (IPAR) and Research and Adelphi (a German institute) in collaboration with ministry of Disaster management and other government institutions, with the aim of understanding the policy implications of the research findings. Most of the more than 360 respondents in the survey are dealers in car spare parts, general merchandise or foodstuff, according to Aime Tsinda, the researcher. Surveyed businesses have an estimated total annual profit of Rwf633.1 million but an annual damage cost of Rwf620,000 per affected business, which exceeds the annual profits of 23 per cent of the business, meaning flooding seriously threatens their survival. Tsinda said 74 per cent of the affected businesses had to sell their damaged merchandise, while damages to premises were experienced by 36 per cent. Damages to equipment or machinery and accounted for 18 per cent while damages to production inputs accounted for 3.1 per cent of the businesses. For indirect damages, the survey shows that 75 per cent of the business premises could not be accessed by customers, while 38 per cent lacked access to electricity, among other things. More than 80 per cent of the respondents said the flooding experienced in 2013 was the worst in the last three years. Findings on protection measures The survey shows that 71 per cent of 355 businesses have taken measures to protect their businesses against flooding through creating flood barriers, moving production inputs higher above the ground, creating ditches around the buildings and using waterproof building materials. However, despite those measures, the damages still occurred. A total of 28 per cent businesses said the measures needed to curtail the effects of flooding were too expensive or no information on how to deal with it. As suggested measures to protect and reduce damage costs, 60 per cent of the respondents proposed seeking insurance, 29 per cent considered relocation of their businesses, 25 per cent mulled over using more water-proof building materials while some mentioned creating portable flood barriers. Others called for dumping on streets and drainage channels to be effectively stopped, as well as having an early warning system. MIDMAR, partners react The Minister for Disaster Management and Refugee Affairs, Seraphine Mukantabana, said the findings are part of the needed continued efforts to sustain all actions for reducing disaster risks and building disaster-resilient communities. “We have the second Economic Development and Poverty Reduction Strategy to sustain the development momentum but we know potential obstacles that could impede achievement of these goals due to increasing disaster risks and impact of climate change,” she said. “The cumulative effect of these small scale events and their recurrent nature, however, if left unattended to, is likely to undermine community resilience to disaster risk.” Mukantabana said such studies are crucial as Rwanda is fast-tracking its development business agenda shaped by a growing number of small and medium enterprises. The findings will awaken business people to consider resilience as a critical aspect of business sustainability, she added. The minister reiterated that research remains one of key priorities in the national disaster management programmes and recommended further research. Rose Mukankomeje, the director-general of Rwanda Environment Management Authority, said businesses could be relocated as the findings also suggest stopping encroachment on wetlands and water catchment areas. Experts suggest further research on the real causes of flooding in Nyabugogo so as to uproot triggering factors. They also recommend raising more awareness on protection measures to emphasise businesses’ role in addition to capacity building in adaptation to such challenges. Abdul Karim, an expert from the Germany Corporation for International Cooperation (GIZ), said the project – ‘Climate resilient and competitive private sector’ – is targeting sensitisation and capacity building on climate change adaptation and financing for small businesses. He said it is being implemented in Rwanda, Morocco, Bangladesh and Central America from 2014 to 2017. “We will also help them integrate climate adaptation in their business development services in collaboration with local authorities where insurance products can be availed to them through a financing strategy we are devising,” Karim said. editorial@newtimes.co.rw

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Nyabugogo businesses lose Rwf178m to flooding annually, shows survey