Industries are counting the cost of the temporary closure of the Lebombo border crossing to Mozambique amid post-election unrest, with experts warning of the risk of job losses and business closures as companies struggle to recover from the disruption.
The border was reopened on Wednesday after the South African economy took an economic hit of up to R10m daily, according to specialists in logistics and export-reliant sectors.
In the Mozambican elections, Frelimo candidate and president-elect Daniel Chapo won 70.67% of the vote, followed by Podemos candidate Venâncio Mondlane with 20.32% and Renamo candidate Ossufo Momade with 5.81%.
Kage Barnett, a representative of the Southern African Association of Freight Forwarders (SAAFF) told Business Times on Friday that delays in the transport of vehicles and car parts disrupted manufacturing schedules, while businesses reliant on just-in-time inventory struggled to meet consumer demand.
“Industries across the region, including mining, agriculture, automotive, and manufacturing, have been severely affected. Operational costs have risen due to delays, supply chains have been disrupted, and the risk of job losses and business closures has increased. As the ripple effects of these disruptions spread, the broader Southern African economy faces significant challenges.”
The disruptions on the Maputo Corridor extend beyond local markets, highlighting its critical role in connecting Southern Africa to international trade networks.
Industries across the region, including mining, agriculture, automotive, and manufacturing, have been severely affected
— SAAFF's Kage Barnett
“Exports of chrome and other minerals faced delays, disrupting global supply chains and driving up costs for exporters. Agricultural products, including vegetables and maize, were particularly vulnerable to being spoiled, creating shortages and price hikes in local markets,” Barnett said.
While the reopening of the Lebombo border was a relief for road freight and logistics, concerns persist about unresolved issues on the Maputo Corridor.
“Recent meetings involving the SAAFF, Sars, and the Border Management Authority (BMA) have resulted in the introduction of short-term countermeasures. The impact has been widespread across industries."
In response to disruptions on Wednesday, military personnel were deployed along the route from Lebombo to Maputo, with officials at Ressano Garcia closely monitoring demonstrations.
A stop-and-go system on both sides of the border managed truck movements, while regular updates were provided to transporters about road conditions. Freight forwarders said these measures underlined the volatile nature of the situation, which required constant vigilance and adaptability.
Transporters’ options in the face of disruptions include collaborating with the SAAFF, Sars, the BMA and Mozambique’s convoy escorts to facilitate safer truck movements.
Gavin Kelly, CEO of the Road Freight Association, said the economic cost of full closure or suspension of Port of Maputo operations to the South African economy is estimated at around R10m a day.
“Direct losses to freight logistics is around R6m, including damage to [and] loss of vehicles, injury, loss of drivers, looting of loads, inability to retrieve vehicles, disruptions of exports, imports, loss of business due to consignment loads not being fulfilled, loss of fleet capacity to perform linked or other load agreements, loss of revenue for operations, extra security deployments.”
He said the rest of the estimated losses were in sectors including servicing, manufacturing, tourism, retail, mining and agriculture.
Briefing reporters on the latest cabinet meeting this week, minister in the presidency Khumbudzo Ntshavheni said the elections in Mozambique were monitored by missions from the AU and Sadc and their reports indicated no political intimidation or violence during the election.
“The … post-election violence is a concern, and all the disaffected parties should exhaust established legal remedies to resolve their election grievances and continue to build on the foundations of peace laid in the Maputo Accord for Peace and National Reconciliation.”
She said the incitement of violence by an aggrieved party was “not acceptable”.
Correction: November 18 2024
This story has been corrected to include missing text.
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