Post-virus recovery goes up in flames for Tunisian vendors

Tunisia’s early lockdown saw it report just 49 deaths from the coronavirus disease, but informal workers, like vendors, have suffered. (AFP)
Short Url
Updated 18 June 2020

Post-virus recovery goes up in flames for Tunisian vendors

  • Dozens of market sellers in the Tunisian capital have seen their livelihoods go up in smoke

TUNIS: The Tunis Medina had reopened for business after nearly three months of lockdown, but vendor Abdel Aziz Talbi wasn’t working.

Three weeks earlier, the 67-year-old lost his entire stock of clothes and shoes in a fire that ravaged the second-hand market.

“I had prepared and bought clothes for the summer,” said Talbi. “All of it is burnt.”

Dozens of market sellers in the Tunisian capital have seen their livelihoods go up in smoke, destroying their hopes of recovering from months of lost revenue due to slow sales and measures put in place to stop the coronavirus.

Even before the market in the historic Hafsia neighbourhood had to close for lockdown in March, sellers say sales of their winter stock were low due to mild weather and a new market that blocked access to their stalls.

The old market, which houses several hundred stalls, reopened on May 11, as the lockdown was partially eased in the middle of the holy month of Ramadan.

Traders say they hoped sales would pick up with people looking for new clothes for Eid. But two days later, 30 of the 50 stalls in the oldest part of the market went up in flames. Police are investigating, and have arrested six people suspected of arson, according to municipal authorities.

“They (the sellers) were already suffering and Ramadan tends to be a good time, so the fire hit at a very bad time,” says Katharina Grueneisl, a researcher studying Tunis’ second-hand economy at Durham University in the UK. Market sellers who spoke to the Thomson Reuters Foundation said they lost between 3,000 dinars ($1,100) and 35,000 dinars worth of stock to the fire, though Grueneisl said reliable data was hard to find.

“In the period of (lockdown), I borrowed money — 500 dinars here, 500 there. I am now in debt to my wholesaler, my friends and my relatives,” said Talbi.

“Sellers that can are rebuilding. The rest of us, we’re just standing here and watching.”

Now a square of rubble punctuated with a few blackened metal poles, the marketplace was a criss-cross of wooden stalls. It sprung up on the demolition site of a historic Jewish neighbourhood, when rural migrants arrived in Tunis and started building and selling informally.

Today, the vendors are part of Tunisia’s informal workforce, worth almost 60 percent of the country’s total working population, according to the International Labour Organisation.

It added that informal workers were among the hardest hit by global coronavirus lockdowns.

By instituting severe quarantine measures early, Tunisia managed to control the spread of the disease, reporting only 49 deaths.

However, those measures also deepened the country’s economic crisis and have left many Tunisians struggling to make ends meet.

Among the poorest 40 percent of Tunisian people, over three-quarters received no income at all during the lockdown, according to Tunisia’s national statistics institute and the World Bank.

“We have no insurance, so I didn’t receive anything,” said Ali Boualeg, 82, who has had a stall in the market since the 1970s.

Amel Meddeb, head of the municipal council for the medina, said the government was paying a 200-dinar monthly stipend to individuals hit by the crisis, but many informal workers were not eligible.

“In the informal sector, we can’t assess whether workers are in need or not, we don’t know if they earn a lot or a little,” she explained.

The municipality has offered to help repair the damage caused by the fire and sees this as a good occasion to “study the situation of the fripe (market),” said Meddeb.

That could include formalising the marketplace by allocating spaces, registering the sellers — who currently pay the municipality a small, annual licence fee — and improving the layout to prevent future fires, she noted.

But the vendors are wary of the council’s plans, worried that authorities will “take this place” said Mohamed Ayari, a 62-year-old seller, as he sat on a cushion and surveilled the construction workers rebuilding his stall.

Meddeb, though, said there are no plans to get rid of the market completely.

Aramco profits fall in tough quarter, but sees partial recovery from COVID-19 impact

Updated 09 August 2020

Aramco profits fall in tough quarter, but sees partial recovery from COVID-19 impact

  • Aramco see’s “partial recovery” from pandemic impact
  • Aramco president says company remains resilient

DUBAI: Saudi Aramco, the world’s biggest oil company, reported a net income of $6.57bn for the second quarter of 2020, the period which witnessed the most volatile oil market conditions for many decades.

The result, announced to the Tadawul stock exchange in Riyadh where the shares are listed, compared with income of $24.7 bn last year.

Amin Nasser, president and chief executive, said: “Despite COVID-19 bringing the world to a standstill, Aramco kept going. We have proven our financial resilience and operational reliability, setting a record in our business operations, while at the same time taking steps to ensure the health and safety of our people.”


This section contains relevant reference points, placed in (Opinion field)

Aramco’s dividend - a big attraction for the investors who bought into the world’s biggest initial public offering last year - will remain as pledged, Nasser added. Cash flow in the quarter amounted to $6.106 bn.

““Strong headwinds from reduced demand and lower oil prices are reflected in our second quarter results. Yet we delivered solid earnings because of our low production costs, unique scale, agile workforce, and unrivalled financial and operational strength. This helped us deliver on our plan to maintain a second quarter dividend of $18.75 billion to be paid in the third quarter,” he said.

Aramco said the loss was “mainly reflecting the impact of lower crude oil prices and declining refining and chemicals margins, partly offset by a decrease in production royalties resulting from lower crude oil prices and a decrease in the royalty rate from 20 per cent to 15 per cent, lower income taxes and zakat as a result of lower earnings, and higher other income related to sales for gas products.”

Sales and revenue in the period - which saw oil prices collapse on “Black Monday” in April - fell 57 per cent to $32.861 bn from the comparable period last year. 

Nasser said he was cautiously optimistic that the world economy was slowly recovering from the depths of the pandemic lockdowns.

“We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies. Meanwhile, we continue to place people’s safety first and have adapted to the new normal, implementing wide-ranging precautions to limit the spread of COVID-19 wherever we operate.

“We are determined to emerge from the pandemic stronger and will continue making progress on our long-term strategic journey, through ongoing investments in our business – which has one of the lowest upstream carbon footprints in the world,” he added.

Aramco expects capital expenditure to be at the lower end of the $25bn to $30bn range it has already indicated for this year.