Mozambique protests hit south african economy with daily losses of R10 million
Post-election protests in Mozambique, which have disrupted normal operations at the Ressano Garcia border, are inflicting significant losses on the South African economy. The South African Association of Transport and Rail estimates that the border closures due to the unrest are costing South Africa approximately R10 million (around $550,000) per day.
With rising instability, South Africa has repeatedly been forced to close its side of the Lebombo border, leading to a backlog of trucks carrying mineral exports. The Minerals Council South Africa emphasizes that 53% of the country’s exported chrome in 2023 passed through the port of Maputo, underscoring the strategic importance of the Ressano Garcia border for South Africa’s economy.
In response, the South African government expressed concern over the violence and urged the use of legal channels to resolve electoral disputes. “The ongoing post-election violence is troubling, and all parties with grievances should exhaust legal resources to address their concerns,” stated Minister in the Presidency Khumbudzo Ntshavheni during a post-cabinet briefing. She also highlighted the role of SADC and the African Union, which monitored the electoral process and deemed Mozambique’s elections largely free, despite some incidents.
On the Mozambican side, customs authorities reported substantial losses, estimating that the crisis at the borders has led to a daily shortfall of 1.5 billion meticais in revenue. Total losses in Mozambican customs revenue due to disruptions at the Ressano Garcia border are believed to have reached around 4 billion meticais.
Mozambique’s strategic location, bordering six Southern African countries, makes it a crucial trade hub for the region. Any instability within Mozambique has direct economic repercussions on its neighbors, raising broader concerns about regional stability.
Political analysts, both local and international, have noted that recent protest tactics led by Venâncio Mondlane, particularly those aimed at destabilizing regional trade, may have been poorly calculated, given the risk of losing regional support. SADC has called an emergency summit from November 16 to 20 in Harare, where the situation in Mozambique will be discussed. With the protests impacting neighboring economies, the movement is increasingly being viewed as a potential threat to regional order.
