The geopolitical conflict in Mozambique comes at a very delicate time for South Africa, when logistics and the supply chain are under pressure from several other disruptive challenges says Dr. Juanita Maree, Chief Executive of the Southern Africa Association of Freight Forwarders (SAAFF).
South Africa’s business sector has voiced concern over the Southern Africa Development Community’s (SADC) slow response, calling on member states to move immediately into a leadership position as mediator, to restore law and order and stabilise trade operations, which are critical to the regional economy. These action,s they assert, are critical to the safety of the citizens on both sides of the border and to stop the destruction of critical infrastructure that enables the efficient flow of regional and international trade and cargo through, to and from the Port of Maputo, as well as inland and further afield.
Barbara Mommen, Trade and Transport Corridor Specialist said, while there is an acute awareness of, and appreciation for, the complex and difficult circumstances which have given rise to the current situation, the uppermost concerns relate to the extreme challenges which now face trade, not only in South Africa and Mozambique, but the entire region as it attempts to grapple with the aftermath of the destabilisation of the Maputo Corridor.
SADC, as the regional body responsible for trade, development and investment, must be tasked with addressing the escalating post-election violence in Mozambique. Infrastructure at the Ressano Garcia Border Post and the KM4 facility has been severely damaged, and on-going violence threatens to cause further disruptions. Lives are being lost and livelihoods are threatened across the Southern Africa region.
The need for the temporary closure of the Lebombo border have intensified the crisis. The economic impact of this situation is long-term and extends beyond Mozambique to all other countries in the SADC region but in particular South Africa and Zimbabwe, as halted trade raises the risk of economic setbacks. The supply chains currently utilising the Maputo Corridor compete internationally, and the predictability required for ensuring international competitiveness is putting these fragile supply chains at significant risk.
Maputo has long been a vital port for regional and international trade, growing significantly in importance over the last 15 to 20 years as a successful public private concessionary – an operating model that has increased capacity, driving growth and investment into Mozambique – one of the world’s poorest economies, and indeed into Southern Africa.
To varying degrees, the implications of this crisis will have a long-term negative impact on all the countries in the SADC region, explains Dr. Maree, as it will take time for traffic to and from the Port of Maputo to stabilise and to restore to previous volumes. The loss of important infrastructure servicing trade and transport on the corridor will be felt for many months and even years, and places government coffers under enormous pressure for rebuilding and repairs to infrastructure, and replacement of essential equipment. Additionally, many essential jobs are now at risk, while the ripple effects for informal, small and medium businesses will be felt for some time. Business will limp forward into an uncertain future after this troubled, disruptive period.
SAAFF, as an industry representative body, stands ready to actively collaborate with the authorities on the implementation of strategic processes that will restore and stabilise the flow of trade and cargo through ports, corridors, and transport networks – both road and rail – to and from Mozambique. For Southern Africa to thrive as a unified, regionally integrated trading block, it must remain a reliable, competitive route and destination within the regional and global supply chains. To achieve this, it demands immediate consultation with apex bodies in the region, and the assurance that the leadership will address and confront the challenges impacting business in general due to the conflict and logistics specifically. The disruption to the logistics activities cannot be allowed to continue, as it is a primary and critical enabler of economic growth and fiscal revenue in this region.