Maputo's market scene is experiencing a downturn with essential goods like potatoes and onions in short supply due to post-election unrest that has been ongoing for two months, disrupting imports from South Africa. The disturbances have stemmed from disputes over Mozambique's election results, leading to over 100 fatalities as reported by civil groups. These protests have caused significant disruptions in the city's center and at the Mozambique-South Africa border, a crucial import channel, affecting the economies of both nations. The availability of fresh produce from South Africa in Maputo's markets has been severely impacted, with instances of perishable goods rotting due to delays exacerbated by high temperatures.
Siudecar Novela, president of the Mukheristas association, highlighted the plight of approximately 100 trucks stranded at the South African border, resulting in the spoilage of potatoes. The looming threat of further protests, announced by opposition leader Venancio Mondlane, raises concerns about the complete cessation of exports through the Lebombo-Ressano Garcia border. Importers and traders at Zimpeto market, a primary source of produce for Maputo, are increasingly anxious as they await news on their delayed shipments, with some fearing for their financial stability due to reliance on microfinancing.
The economic repercussions extend to South Africa, where border shutdowns disrupt exports through Mozambique's ports, costing the South African economy significantly. South African Home Affairs Minister Leon Schreiber emphasized the need for a resolution to Mozambique's political deadlock to mitigate trade and travel impacts. Importers advocate for dialogue between Mondlane and the ruling Frelimo party as the only solution to the ongoing crisis, underscoring the urgency for conflict resolution to restore normalcy and freedom for the Mozambican populace ahead of the official election result confirmation by the Constitutional Council.
Source: BARRON'S