Sellers flexibility for Mawza and Dhubab markets allowed half of consumers to buy goods by debtEnglish - السبت 25 يونيو 2022 الساعة 06:36 م
The joint rapid assessment of the markets in the districts of Mawza and Dhubab in Taiz governorate, April 2022, showed that more than half of consumers (64%) purchase goods on credit - debt - as a coping mechanism for reduced income or purchasing power.
The assessment, conducted by the International Organization for Migration (IOM) and REACH, confirmed that vendor performance indicators did indeed allow for the purchase of credit for neighbors and friends.
According to the International Organization for Migration. The assessment is based on interviews with key informants with retailers, wholesalers and consumers. With the goal of quickly identifying markets, and consumers' access to the market, its products and money.
The assessment indicated that among the consumers interviewed, 78% reported lower income or purchasing power. The most cited reason was unemployment at 76%, followed by the end of humanitarian assistance at 26%, inflation at 24%, and currency devaluation at 21%.
Other frequently reported coping mechanisms were different meals (57%), and 30% of consumers were reported to have sold household assets. While 23% indicated selling productive assets.
The evaluation indicated that in light of the coping mechanisms that citizens follow. Consumers are more likely to need to pay off debt or compensate for the loss of assets in the future.
The assessment said that among the main factors that drained the sellers' capital is price inflation. and the risk of credit default by consumers. The higher the demand for credit purchases.
He stressed that the currency devaluation was reported as the main contributor to the increase in consumer prices.
Mawza’ and Dhubab are two rural districts in Taiz Governorate. Mawza’ has a population of about 21,000 people, including 1,800 internally displaced people.
The population of Dhu Bab is 26000 people with 4500 displaced people. Vendors serve residents of neighboring towns and villages, and the field team estimated the total number of 30 to 40 stores in each town offering goods and services.
The majority of key vendor informants expect to keep goods available and open businesses. A small portion of the sellers interviewed are less optimistic about the future of their business. This difference was adopted in the competition among the vendors interviewed.
According to the interviewed vendor's KPIs, controlled foodstuffs and sanitation and hygiene items were widely available in the markets assessed.
According to the report, sellers reported no shortages of controlled items. They recalled stocking about one week out of stock.
The assessment indicates the sellers' resilience in the face of capital pressures and a challenging supply chain. Where the markets were accessible to consumers without obstacles or noticeable shortages.