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Maputo corridor disruptions threaten trade and stability: agencies – SABC News
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Maputo corridor disruptions threaten trade and stability: agencies – SABC News

Local industry bodies have warned that any disruption to the Maputo corridor will significantly hamper trade, supply chains and regional stability.

Several manufacturing, warehousing and logistics companies have chosen to stop operations for safety reasons. It follows post-election protests in Mozambique that led South African border authorities to temporarily close the Lebombo border post.

Logistics company Grindrod suspended operations in the country’s capital, Maputo, and in Matola, in response to the escalating violence.

‘SADC will intervene’

The Southern African Transporters Association says the unrest in Mozambique comes at a delicate time for South Africa, when logistics and the supply chain are already under pressure.

Trade and transport corridors specialist Barbara Mommen says SADC should be tasked with addressing the escalating post-election violence in Mozambique.

“In fact, SADC leaders should have addressed the issue much earlier. It has been mentioned that the issue will be addressed in the regional context in about 10 days at a SADC meeting. And it may be too late to truly rescue what is already a badly damaged corridor. And I think it also highlights the kind of crisis we are in now, with a lack of infrastructure and no plan B.”

The port of Maputo is also a main mineral export route and losses have already been significant. The Minerals Council of South Africa says chromium producers are particularly dependent on this route.

Minerals Council SA spokesperson Allan Seccombe says: “So far, Mozambique has been a wonderful export channel for South African chrome, coal and also magnetite miners. So all our bulk products can go through Maputo. Port operator Grindrod is so pleased with its performance that it is even talking about increasing its capacity. At that port, and this is mainly due to the difficulties that South African bulk products have had with the railways to Richards Bay and the port functions there. Maputo has thus provided a crucial outlet for South African mining companies.”

potato producers

Meanwhile, emerging potato growers say they are hardest hit by disruptions to trade between South Africa and Mozambique.

Potato farmer Walter Mathidi explains: “The challenge at the Lebombo border really affects us as farmers who produce potatoes because we take most of our potatoes to Mozambique. Especially for us, who don’t have washing machines. We sell our products to Mozambique instead of taking them to the domestic market. This is our moment where we are now harvesting. “It’s the wrong time to harvest, so it means there will be a big challenge because we don’t want to know where to take our potatoes.”

The main concern is how long the unprecedented unrest will last and how quickly export operations can resume. Industry bodies estimate losses will run into tens of millions of rands each day. There are also fears of job losses that would further worsen unemployment and poverty in both countries. SARS is understood to have been in talks with the private sector to reach alternative arrangements.