THE recent post election conflict in Mozambique, coupled with the closure of the Lebombo border post, has generated significant economic repercussions for South Africa.
This comes after the Border Management Authority made the decision on Thursday to close the border crossing into Mozambique in response to a new wave of protests that erupted around Maputo.
Mozambique is experiencing violent demonstrations following the election results announced on October 24, with the ruling party’s presidential candidate, Daniel Chapo, winning 71% of the vote, extending the Frelimo party’s 49-year rule.
Clashes first broke out last month after police opened fire on supporters of 50-year-old opposition candidate Venancio Mondlane, who lost the elections to Chapo and refused to concede.
Though the October 9 election was won by Chapo of the Frelimo party, Mondlane claimed he actually won and called for mass protests, which have so far left more than 18 people dead, many others injured, including a policeman, and about 400 people detained, according to Human Rights Watch.
As a result, South Africa, the world's largest chrome exporter, was paying a price as trucks carrying South Africa’s chrome were stranded, costing the country’s business at least R5 billion.
CEO of the Road Freight Association, Gavin Kelly, said the disruption to cargo moving through the Maputo Port amounted to losses of approximately R5 billion so far.
“The disruptions are currently mainly for cargo moving out of South Africa. We do know that various authorities have advised that transport companies should not attempt to cross into Mozambique,” said Kelly.
Minerals Council South Africa told Moneyweb: “The closure of the Lebombo border post used by trucks transporting South African minerals to the Maputo harbour for export is of particular concern for the chrome industry.”
In 2023, South Africa exported at least 17.7 million tonnes of chrome ore and concentrate; 9.4 million, or 53%, was exported through Maputo port by road.
Among other companies that halted services in Mozambique, logistics group Grindrod, which handles cargo volumes of approximately seven million tonnes, also stopped port operations with concerns raised by the company with fears that constrained flows of chrome to overseas customers will have a serious impact on South African chrome exports.
The company said its port and terminal operations in Maputo and Matola had to temporarily close to ensure the safety of its employees.
Coupled with the closure of Lebombo, the Port of Maputo halted business activities, forcing other businesses to temporarily shut down.
IOL previously reported that the border was closed Tuesday night before it was reopened on Wednesday but was subsequently forced to close on Thursday morning amid the protests taking place in Mozambique.
“The situation we are dealing with here is very unpredictable and very volatile,” commissioner of the Border Management Authority (BMA), Dr Michael Masiapato, spoke to broadcaster Newzroom Afrika.
He claimed that on Thursday morning “protesters started to intensify their protest on the Mozambican side, to the extent that they even burnt some of the offices at Kilometre 4 and they also looted some of the trucks,” he said.
“When that happened, it became clear that it was becoming very problematic. Those people started moving towards the port, meaning they were moving from Kilometre 4 towards Ressano Garcia (town). The officials on that side closed their offices and ran into the South African side.”
Mozambique has known no peace in recent years as Cabo Delgado, the country’s northernmost province, became the scene of a deadly insurrection in 2017.
According to the International Crisis Group, some of the Mozambican rank and file militants were motivated to fight by their perceived socio-economic exclusion amid major mineral and hydrocarbon discoveries in the region.
“The conflict threatens national stability, just as Mozambique is fulfilling a peace deal with the country’s main opposition group in the centre of Mozambique, and risks becoming a new frontier for global jihad to exploit.
“Crisis Group advocates for bespoke military support from external actors, dialogue with the Mozambican rank and file, and measures to address the underlying frustrations that led these militants to take up arms.