Sao Paulo (AFP)

Sao Paulo partially resumes its economic activity, but in certain streets of the largest metropolis of Brazil, the alignment of lowered iron curtains testifies to the impact of the coronavirus: the traders have shut down.

Many stores did not have enough funds to withstand the paralysis of activity that has been going on for three months. They will not reopen after the health crisis.

Sao Paulo, the economic capital of Brazil, with 12 million inhabitants, is home to 40% of the country's small and medium-sized businesses. The multitude of restaurants and bars, with their tables on the sidewalks, gave life to the concrete megalopolis ... until the pandemic.

In the Vila Madalena district, one of the busiest in normal times, the results are already grim, while the pandemic is still not controlled: approximately one in five businesses carries a sign "For rent" or "For sale" .

Bars, nightclubs, tattoo, manicure or hairdressing salons: most of the businesses in this district do not fall under so-called essential activities and cannot operate through online sales.

They have not received customers since March, forcing many owners to close.

This is the case of Graziela Magliano. This 47-year-old Paulista launched her beauty salon seven years ago, focusing on high-quality service and products, which she thought would meet the growing consumer demand for products of natural origin.

In reality: a niche that already had a reduced audience even before the pandemic.

Graziela had little cash reserve. It was then impossible to pay the 8,000 reais (approximately 1,350 euros) in rent and the salaries of its three employees without receiving clients.

Upon the announcement of the first quarantine measures by the governor of the State of Sao Paulo Joao Doria, it decides to close permanently.

"It scared me because I did not know what my sector was going to become after the crisis, especially since it is a profession where people are touched a lot. I did not even try to apply for a loan because I didn't want to get out of this indebted pandemic, "she said, looking through the closed gate at the pretty little white house where she had built her business.

- "Not until next year" -

"We do not yet have the exact number of companies that will not resume their activities but we expect that it will be around 20% of them," said Carlos Melles, president of the Brazilian Association. assistance to small and micro-enterprises (SEBRAE).

So what will, after the pandemic, look like this gigantic and vibrant city sometimes compared to New York, capital of a state that deplores more than 11,000 deaths from Covid-19 and is the biggest source of contamination in Brazil?

"Brazilian entrepreneurs will have to reinvent themselves, jobs will be in the service sector, such as helping the elderly for example. There has also been an increase in online commerce," said Melles.

A slow pace even after the health crisis is also what worries Raimundo Jeronimo and Federico Prim, who are chatting on the doorstep of their adjoining bar-restaurants.

The first opened a typical Brazilian bistro 15 years ago, and collected between 1,500 and 2,000 reais (between 250 and 340 dollars) per day on average.

"Now I earn 15% of that, just enough to pay a few bills. I can still pay the rent because the landlord has cut it in half," he says - a practice widespread enough in big cities to allow renters to pass the brunt of the crisis.

"But if it goes on, I may not be able to hold out financially," added the restaurateur.

"Hopefully the leisure areas, the street bars, which gave its identity to Sao Paulo, will resume ... But it will take time, not until next year," predicts Federico in front of his little snack bar, completely empty at the 'aperitif time.

© 2020 AFP