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Home»World»South America
South America

The bleak future: exploring the aftermath of floods on Brazilian businesses

June 13, 2024No Comments3 Mins Read
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Rambo’s store is just one of the many businesses in Porto Alegre impacted by devastating floods that began in late April. The Chamber of Store Managers estimates that the total cost to commerce in the city was $91 million between April 29 through May 26. The floods were caused by torrential rains that inundated the city and surrounding mountains, causing the Guaiba River to rise 5.33 meters higher than normal, levels never before seen in the region.

Business owners near the Porto Alegre waterfront watched as floodwaters rose each day, eventually flowing into their stores and restaurants. Many, like Eni Verdejo Monteiro, the owner of Lanches da Tia sandwich shop, were affected by the flooding. With no way to close the large metal gate in front of her restaurant, Monteiro and her husband stayed to protect their property from looters. Dozens of people were arrested for trying to break into homes and businesses during the flooding, causing further distress to those affected.

State officials have declared the flooding in southern Brazil as the worst climate disaster in the region’s history. Reconstruction costs across Rio Grande do Sul state could amount to $4 billion, with 90% of municipalities and 2.3 million people impacted. Six hundred thousand people were displaced from their homes, and 50,000 are still in shelters. Entire sections of towns in the mountains north and west of Porto Alegre were obliterated by inundated rivers, leading to devastation on a massive scale.

Brazil’s President visited the town of Arroio do Meio, one of the hardest-hit areas, where city blocks were wiped clean by floodwaters. In Porto Alegre, low-lying areas close to the river, including City Hall and the historic city center, were inundated. Meanwhile, some neighborhoods higher up on hillsides continued as usual, with only temporary disruptions to electricity and water supply. The city is slowly re-emerging, with some areas still underwater and the airport expected to remain closed until the end of the year.

President Lula has promised $10 billion for the state’s recovery, and the New Development Bank has pledged an additional $1 billion. However, reconstruction efforts are being delayed by continued rains, strong winds, and challenges with infrastructure. The future remains uncertain for business owners like Monteiro and her family, who are facing financial losses and the daunting task of rebuilding. Despite the challenges ahead, they refuse to give up and are determined to overcome the devastation brought by the floods.

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