Damage and Losses in Industry and Commerce Sectors 2008 Cyclone Season in Madagascar J. Roberto Jovel

11Sep08RJovel2 Contents 1.The Assessment of 2008 Cyclone Season in Madagascar 2.Damage and Losses in Industry and Commerce Sectors 3.Scope of Exercise

Assessment of Damage and Losses of 2008 Cyclone Season in Madagascar

11Sep08RJovel4 Location Map

11Sep08RJovel5 Madagascar: Total Damage and Losses

11Sep08RJovel6 Most Affected Regions

11Sep08RJovel7 Damage and Losses Per Capita

Assessment of the Industry and Commerce Sectors

11Sep08RJovel9 Impact on Industry and Commerce Sectors Extensive damage caused by strong winds and widespread flooding –Winds destroyed roofs and windows of shops –Rain entering through collapsed roofs destroyed furniture, machinery, and stocks of goods and inputs –Floodwaters further damaged building contents Large number of Micro-, Small, Medium and Large enterprises affected Production and sales losses occurred due to –Interruption of power supply –Destruction of assets –Lack of inputs, raw materials and goods for sale

11Sep08RJovel10 Data Availability and Collection Baseline data for assessment included the most recent (2005) national survey of industry and commerce undertaken by the Statistical Institute, that provides information on –Number, size and type of industrial and commerce establishments –Average monthly sales by size and type of establishment Since it was impossible to visit and assess the many thousands of affected shops, the data collection scheme included –Field visits to representative factories and shops in the most affected Districts, carried out by assessment team –A special sample field survey to determine damage and losses to micro to large enterprises,carried out by private survey enterprise

11Sep08RJovel11 Assessment Procedure Damage and losses were extrapolated to the entire affected area by combining –Primary information on damage and losses obtained from field survey by assessment team and from sample survey undertaken by private enterprise that also provided information on period of stoppage of production and sales –Data on number, size and monthly production and sales from most recent sector survey carried out in 2005 by Statistical Institute, and –Data on number of destroyed and damaged housing units available from government authorities and supplemented during field assessment

11Sep08RJovel12 Number, Size and Production of Industry and Commerce Establishments (From INSTAT)

11Sep08RJovel13 Sample Survey Results

11Sep08RJovel14 Housing Sector Survey

Scope of the Assessment Exercise

11Sep08RJovel16 The Exercise Workshop participants are required to undertake the estimation of damage and losses to the industry and commerce sectors after the 2008 Cyclone Season in Madagascar Special working groups composed of 6 to 10 persons are to be organized and each group will separately make analysis of individual sectors Each working group will elect a leader to provide coordination and also to present results of the assessment to the entire workshop upon completion

11Sep08RJovel17 Procedure for Exercise 1. Estimate number of affected establishments, for the two sectors, breaking it down by micro, small to medium and large sizes a)Obtain destruction rates from housing sector assessment data and apply as required to micro, SME and large establishments, as follows: –For micro enterprises, destruction rate from local-material houses –For SMES and large enterprises, destruction rate for durable- material units b)Combine with number of shops of each size and type taken from INSTAT data c)Obtain number of affected shops for each sector and each size and type of establishment

11Sep08RJovel18 Procedure for Exercise.. 2. Estimate value of damage for each sector, with breakdown by size of establishment a)Using number of affected shops obtained under step 1 b)Multiply by average value of damage to buildings, machinery, stocks obtained in sample survey c)Obtain value of damage for each sector, by type and size of shop

11Sep08RJovel19 Procedure for Exercise Estimate value of losses for each sector, with breakdown by size of establishment a)Using number of affected shops obtained in step 1 b)Multiply by value of average losses estimated by combining period of stoppage obtained from sample survey and the value of average monthly output/sales per type and size of establishment taken from INSTAT data c)Obtain value of losses for each sector, by type and size of shop

11Sep08RJovel20 Procedure for Exercise Estimate total values of damage and losses for each sector, by combining the estimates from steps 2 and 3, with breakdown by type and size of establishment 5.Prepare a brief presentation of results of the assessment to be discussed by all participants of the workshop