Impact of Mozambique’s Election Crisis on Regional Exports
The ongoing political crisis in Mozambique following the October 9 general elections continues to raise concerns about its impact on the region’s exports. As the final results continue to be announced, tensions remain high and the economic consequences are beginning to be felt.
The opposition candidate Venâncio Mondlane’s challenge to the provisional results led to protests and blockades across the country, disrupting trade flows. Blocked roads and closed borders have a direct impact on commodity exports, particularly on South Africa’s chrome sector.
Indeed, South Africa, the main country affected by the instability in Mozambique, exports a significant amount of chrome through the port of Maputo. However, the regular closure of the Lebombo border post between the two countries disrupts this trade, jeopardizing the South African economy. According to Gavin Kelly, president of the South African Road Freight Association, this situation costs the country’s economy $550,000 every day.
South African chrome exports, which reached a record high in August, could therefore see their growth hampered by the Mozambique crisis. Discussions between the governments of Maputo and Pretoria aim to secure infrastructure and minimise disruptions to regional and cross-border trade. However, logistical challenges remain significant and could have a lasting impact on the chrome sector in South Africa.
Furthermore, Eswatini’s sugar exports are also affected by road blockages at the Mozambique border. This small southern African country, which depends on the port of Maputo for its exports, is now considering switching to the port of Durban in South Africa. However, this alternative represents an additional cost for sugar producers and puts a strain on Eswatini’s transport infrastructure.
In conclusion, the post-election crisis in Mozambique has a significant impact on regional exports, jeopardizing the economies of several neighboring countries. The authorities must act quickly to resolve this crisis and allow the resumption of trade in the region.