Fuel queues create windfall for SMEs

Malawi’s ongoing fuel crisis has left motorists spending hours and in some cases days, queuing for petrol and diesel.

But for a group of informal traders operating around filling stations, the crisis has created an unexpected business opportunity.

Malawi’s ongoing fuel crisis has left motorists spending hours and in some cases days, queuing for petrol and diesel.

But for a group of informal traders operating around filling stations, the crisis has created an unexpected business opportunity.

Long queues have become a daily feature across the country as motorists scramble for the little fuel, disrupting transport, businesses and household routines.

But the concentration of customers at filling stations has boosted sales for vendors selling food and snacks to stranded drivers.

In an interview on Thursday at Mount Pleasant TotalEnergies Service Station in Blantyre, small-scale trader Mary Naitha said the scarcity has transformed her business.

The vendor, who sells nsima and rice near the station, said demand rises sharply whenever fuel shortages hit because motorists waiting in queues become a captive market.

“I make my best sales during fuel crises. I was the first woman to start selling here at Mount Pleasant and many motorists know me. I have built a strong customer base,” she said.

Naitha said the surge in demand has enabled her to improve her finances and clear debts that had accumulated over time.

“I have managed to pay debts of nearly K400 000 through this business. During periods of normal fuel supply, sales are much slower. Some products can take several days to sell, unlike now when customers are readily available,” she said.

Another trader, Emmanuel Thom, who sells roasted groundnuts, said the queues have significantly increased his customer traffic.

“We find customers right at the filling stations. Drivers become our main market and my sales are much higher than when fuel supplies are stable,” he said.

This scenario is replicated across the country, particularly around fuel service stations as the scarcity continues.

Economists the shortage of fuel illustrates how market disruptions can create short-term opportunities for informal businesses even as they impose wider economic costs.

Scotland-based Malawian economist Veli Nyirongo said in an interview that the crisis has benefited traders selling everyday products such as food, groundnuts and sugarcane.

“The fuel crisis has created business opportunities for some small-scale traders because people are increasingly buying what is available nearby instead of travelling long distances,” he said.

However, some economists have cautioned that the gains are largely temporary and should not obscure the broader economic damage caused by fuel shortages.

Mzuzu University economics lecturer Christopher Mbukwa said small businesses should use the period to strengthen customer relationships and improve operations so that demand outlives the crisis.

He said: “To sustain this opportunity beyond the fuel shortage, small businesses need to convert temporary demand into regular customers.

“They can achieve this by maintaining affordable prices, ensuring consistent quality, securing reliable suppliers and focusing on products people need every day.”

Mbukwa noted that limited access to working capital remains one of the biggest challenges facing small-scale businesses in Malawi.

“Although some traders are benefiting from the fuel queues, only a small number are gaining from the situationl,” he said.

Malawi Union of Micro, Small and Medium Enterprises also warned against viewing queue-side trading as a long-term solution to economic hardship.

The organisation’s president James Chiutsi said the shortages had highlighted the resilience of informal businesses, but stressed the need for policy support to help entrepreneurs build sustainable enterprises.

“We should not romanticise selling in fuel queues. Government must use this as a wake-up call to formalise these businesses, provide skills, market linkages and operating spaces so that when fuel supplies normalise, entrepreneurs are not pushed back into poverty,” he said,

While motorists continue to endure long waits at service stations, the crisis is offering a reminder that even economic disruptions can create pockets of opportunity, particularly for Malawi’s informal sector.

Long queues have become a daily feature across the country as motorists scramble for the little fuel, disrupting transport, businesses and household routines.

But the concentration of customers at filling stations has boosted sales for vendors selling food and snacks to stranded drivers.

In an interview on Thursday at Mount Pleasant TotalEnergies Service Station in Blantyre, small-scale trader Mary Naitha said the scarcity has transformed her business.

The vendor, who sells nsima and rice near the station, said demand rises sharply whenever fuel shortages hit because motorists waiting in queues become a captive market.

“I make my best sales during fuel crises. I was the first woman to start selling here at Mount Pleasant and many motorists know me. I have built a strong customer base,” she said.

Naitha said the surge in demand has enabled her to improve her finances and clear debts that had accumulated over time.

“I have managed to pay debts of nearly K400 000 through this business. During periods of normal fuel supply, sales are much slower. Some products can take several days to sell, unlike now when customers are readily available,” she said.

Another trader, Emmanuel Thom, who sells roasted groundnuts, said the queues have significantly increased his customer traffic.

“We find customers right at the filling stations. Drivers become our main market and my sales are much higher than when fuel supplies are stable,” he said.

This scenario is replicated across the country, particularly around fuel service stations as the scarcity continues.

Economists the shortage of fuel illustrates how market disruptions can create short-term opportunities for informal businesses even as they impose wider economic costs.

Scotland-based Malawian economist Veli Nyirongo said in an interview that the crisis has benefited traders selling everyday products such as food, groundnuts and sugarcane.

“The fuel crisis has created business opportunities for some small-scale traders because people are increasingly buying what is available nearby instead of travelling long distances,” he said.

However, some economists have cautioned that the gains are largely temporary and should not obscure the broader economic damage caused by fuel shortages.

Mzuzu University economics lecturer Christopher Mbukwa said small businesses should use the period to strengthen customer relationships and improve operations so that demand outlives the crisis.

He said: “To sustain this opportunity beyond the fuel shortage, small businesses need to convert temporary demand into regular customers.

“They can achieve this by maintaining affordable prices, ensuring consistent quality, securing reliable suppliers and focusing on products people need every day.”

Mbukwa noted that limited access to working capital remains one of the biggest challenges facing small-scale businesses in Malawi.

“Although some traders are benefiting from the fuel queues, only a small number are gaining from the situationl,” he said.

Malawi Union of Micro, Small and Medium Enterprises also warned against viewing queue-side trading as a long-term solution to economic hardship.

The organisation’s president James Chiutsi said the shortages had highlighted the resilience of informal businesses, but stressed the need for policy support to help entrepreneurs build sustainable enterprises.

“We should not romanticise selling in fuel queues. Government must use this as a wake-up call to formalise these businesses, provide skills, market linkages and operating spaces so that when fuel supplies normalise, entrepreneurs are not pushed back into poverty,” he said,

While motorists continue to endure long waits at service stations, the crisis is offering a reminder that even economic disruptions can create pockets of opportunity, particularly for Malawi’s informal sector.

The post Fuel queues create windfall for SMEs appeared first on Nation Online.