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Unrest in Mozambique disrupts Maputo corridor affecting trade

Industry representatives have highlighted the potential disruption to the Maputo corridor, emphasizing the impact on trade, supply chains, and regional stability. Following post-election protests in Mozambique, operations of various manufacturing, storage, and logistical companies have been suspended due to safety concerns, including the temporary closure of the Lebombo border post by South African authorities. Grindrod has paused its activities in Maputo and Matola amid rising violence.

The Southern Africa Association of Freight Forwarders has noted the timing of the unrest in Mozambique as particularly sensitive for South Africa's logistics and supply chain. Barbara Mommen, a Trade and Transport Corridor Specialist, has called for SADC intervention, stressing the urgency of addressing the situation to prevent further damage to the corridor.

With the closure of the Lebombo border post, the export route through the port of Maputo, crucial for minerals, faces significant losses. The Minerals Council South Africa has expressed reliance on this route for chrome exports, with spokesperson Allan Seccombe highlighting the importance of Maputo for bulk commodity exports.

Emerging potato farmers in South Africa, like Walter Mathidi, report severe impacts due to trade disruptions with Mozambique, affecting their harvest and market access. The ongoing unrest raises concerns over prolonged export operation halts, potential tens of millions of rands in daily losses, job security, and the exacerbation of unemployment and poverty in both nations. SARS is reportedly seeking alternative solutions with the private sector.

Source: SABC News

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