Economy

Maputo Corridor disruptions threaten trade, stability: Bodies

Date: Nov 9, 2024

Local industry bodies have warned that any disruptions of the Maputo corridor will significantly hamper trade, supply chains and regional stability.

A number of manufacturing, storage and logistical companies have opted to halt operations due to safety concerns. It follows the post-election protests in Mozambique which led South African border authorities to temporarily close the Lebombo border post.

Logistics company Grindrod has suspended its operations in the country’s capital Maputo and Matola in response to the escalating violence.

‘SADC to intervene’

The Southern Africa Association of Freight Forwarders says the unrest in Mozambique comes at a sensitive time for South Africa, when logistics and the supply chain are already under pressure.

Trade and Transport Corridor Specialist Barbara Mommen says SADC must be tasked with addressing the escalating post-election violence in Mozambique.

“SADC leaders should in fact have addressed the issue a lot sooner. There’s been mentioned that the issue will be dealt with in a regional context in about 10 days time in a SADC meeting. And that may just be too late to really rescue what is already a very damaged corridor. And I think you know it also brings to the fore the kind of crisis that we’re sitting with a lack of infrastructure now and no plan B.”


--Reuters--

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