Mozambique Election Turmoil Results in Daily Trade Loss of R10 Million for South Africa

Following the elections in Mozambique, South Africa is reportedly facing daily trade losses of up to R10 million, as stated by the Road Freight Association (RFA).

The association’s CEO, Gavin Kelly, has called upon President Cyril Ramaphosa to step in and help restore peace amid the ongoing turmoil.

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“We need a Statesman who can communicate to Mozambique that our country is suffering — there must be an agreement on a way forward — and the security of the corridor to the Port of Maputo has to be a top priority, at all costs and by any means necessary,” Kelly remarked.

“Our drivers, their trucks, the cargo belonging to our clients, and the reputation of numerous African businesses are perpetually at risk.”

“Drivers are subjected to violence (despite having no stake in Mozambique’s political issues), their trucks face threats of theft and arson, routes leading to the Port of Maputo are blocked, and the Port itself is essentially under siege.”

The leader of the opposition in Mozambique, Venâncio Mondlane, has contested the results of the October elections, in which Frelimo’s candidate, Daniel Chapo, secured a notable 71% of the votes. Although the electoral commission dismissed claims of electoral fraud, international observers pointed out various flaws and irregularities in the vote counting.

Currently in hiding, Mondlane informed the BBC that he believes protests should continue until Frelimo agrees to negotiations.

“Almost 70 people have lost their lives due to violence following the elections, meeting with global condemnation.”

The South African government congratulated Frelimo on its victory with Chapo at the helm, marking the first time a Frelimo leader has been born after the country achieved independence.

Read: The background to Mozambique’s deadly protests

A letter from the Southern African Catholic Bishops’ Conference expressed disappointment over the South African government’s endorsement of the election results, stating: “It will be difficult to keep suppressing the desires of those yearning for freedom. If the current administration continues along this path, governing will become impossible, amplifying the suffering.”

Focus on rail improvements instead

While the Road Freight Association is advocating for Ramaphosa’s involvement to ensure stability, there are worries that South Africa might get caught up in foreign disputes that could drain resources and create unresolved challenges.

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“We need to prioritize enhancements to our rail systems domestically,” says Jan Havenga, a logistics professor at Stellenbosch University. “It is clear that trucks from South Africa into Mozambique encounter serious challenges. The border was closed for several days recently, causing traffic jams extending as far as 20 kilometers.”

“The solution lies in improving our railway networks and ports, given that a single train can transport the equivalent of 30 to 40 trucks carrying goods overland.”

The persistent instability in Mozambique has always raised concerns, as noted by a transport expert. “When contrasting this with the peaceful transitions in Namibia and Botswana, one gains a clearer perspective of the situation. The risks associated with the trucking dynamics in Maputo have always been present.”

Havenga also mentioned that the recent interruptions in road transport to the Port of Maputo could renew interest in the long-discussed Trans-Kalahari Rail Corridor, which would connect Gaborone in Botswana with Walvis Bay in Namibia, potentially shortening shipping times from Southern Africa to Europe by five days.

Read:
Crumbling SA rail prompts Botswana to forge new route
Scramble for critical minerals spurs an African rail revival

Kelly cautions that Mozambique risks reverting to civil war, echoing the devastation experienced in the 1970s.

“Do we really want to go back to that? Absolutely not. Yet, without the intervention of a Statesman (or Woman), this prospect could become a grim reality, resulting in escalating violence among various factions and further destabilizing the nation.

“Such instability could obstruct all forms of goods, commodities, and tourism entering and moving through the country,” Kelly concluded.

Stay informed with Moneyweb’s extensive finance and business updates on WhatsApp here.

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