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Lebombo Border Post remains closed on Friday morning
Local industry bodies have warned that any disruptions of the Maputo corridor will significantly hamper trade, supply chains and regional stability.
A number of manufacturing, storage and logistical companies have opted to halt operations due to safety concerns. It follows the post-election protests in Mozambique which led South African border authorities to temporarily close the Lebombo border post.
Logistics company Grindrod has suspended its operations in the country’s capital Maputo and Matola in response to the escalating violence.
‘SADC to intervene’
The Southern Africa Association of Freight Forwarders says the unrest in Mozambique comes at a sensitive time for South Africa, when logistics and the supply chain are already under pressure.
Trade and Transport Corridor Specialist Barbara Mommen says SADC must be tasked with addressing the escalating post-election violence in Mozambique.
“SADC leaders should in fact have addressed the issue a lot sooner. There’s been mentioned that the issue will be dealt with in a regional context in about 10 days time in a SADC meeting. And that may just be too late to really rescue what is already a very damaged corridor. And I think you know it also brings to the fore the kind of crisis that we’re sitting with a lack of infrastructure now and no plan B.”
The port of Maputo is also a primary export route for minerals and the losses have already been significant. The Minerals Council South Africa says chrome producers are particularly reliant on the route.
Spokesperson for Minerals Council SA Allan Seccombe says, “Look up until now, Mozambique has been a wonderful export channel for South African miners of chrome and coal and magnetites as well. So all our bulk commodities can go through Maputo. The port operator Grindrod is so pleased with its performance that it’s actually talking about growing capacity. At that habor, and this is mainly as a result of the difficulties South African bulk produces have had at with the railways down to Richards Bay and the port functions there. So Maputo has provided a crucial outlet for South African mining companies.”
Potato farmers
Meanwhile emerging potato farmers say they are bearing the brunt due to disruptions in trade between South Africa and Mozambique.
Potato farmer Walter Mathidi explains, “The challenge at the Lebombo border is really affecting us as farmers who produce potatoes because most of our potatoes we are taking it to Mozambique. Especially for us, who don’t have their washing machines. We sell our products to Mozambique rather than taking them to national market. This is our time where we are now harvesting. It’s an improper time to harvest so, it means there is a going to be a great challenge because we don’t want to know where to take our potatoes to.”
Of key concern is how long the unprecedented unrest will last and how quickly export operations can resume. Industry bodies estimate the 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. It is understood that SARS has been in talks with the private sector to make alternative arrangements.
