Recovery From Cyclone Idai: World Bank: Mozambique could suffer up to $773 mln in economic losses
Updated 15:50, 15-Apr-2019
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Almost one month after Cyclone Idai caused deaths and destruction in southeast Africa, hundreds of smaller businesses in affected areas are yet to resume operation. In Mozambique, the World Bank estimates the direct economic losses fall somewhere between 660 million to more than 770 million US dollars. The disaster claimed more than one-thousand lives and affected nearly 3 million others. CGTN's Robert Nagila is in one of the areas that were hardest hit.
Brick by Brick, contractors rebuild a wall, torn down by cyclone Idai at the Palmeira hotel, a popular destination for locals and holiday makers in Biera.
FILIPE VALIZE MANAGER, HOTEL PALMEIRAS "We have had a huge loss after Cyclone Idai. We have been closed since March 14th and hope to reopen in 3 months. We estimate losses in the hundreds of thousands of dollars."
The hotel's entire roof was damaged and must be replaced while some sections will have to be rebuilt entirely.
Across Beira, a major reconstruction effort by businesses is underway, after suffering significant damage caused by Cyclone Idai. Beira's economy depends largely on the service industry. In January this year, the world bank had revised Mozambique's growth forecast upwards to 3.5% from 3.3%. But with poor harvests caused by floods and significant destruction to infrastructure by cyclone Idai, the economy's growth is expected to take a dip.
Economist Professor Ibraimo Mussagy says worsening conditions in central Mozambique will pile pressure on Beira's economy. 
PROFESSOR IBRAIMO MUSSAGY DEPT. OF ECONOMICS, BEIRA CATHOLIC UNIVERSITY "I believe this will lead to movement from the rural areas to urban areas looking for better opportunities. This may lead to a social problem."
It is still difficult to quantify the damage to the economy. But many Small and medium enterprises that contribute to the country's GDP are facing a mammoth task of rebuilding.
PROFESSOR IBRAIMO MUSSAGY DEPT. OF ECONOMICS, BEIRA CATHOLIC UNIVERSITY "Until now, one month after the cyclone they have not started their activities but they have costs and contracts to pay. Probably some of them will not open again so we might have unemployment."
ROBERT NAGILA BEIRA, MOZAMBIQUE "In response, President Filipe Nyusi has formed a council to assess the damage caused by cyclone Idai to Beira's economy and to come up with possible solutions to spur economic growth. RN, CGTN, B, M."