10 December 2024 | 12:00 CAT
2-minute read

The escalating unrest at Mozambique’s border is severely impacting South Africa’s economy, particularly its logistics and export industries.

Gavin Kelly, CEO of the Road Freight Association, discussed the crisis during an interview on Radio Islam International. He emphasised the ripple effects of Mozambique’s political turmoil on South Africa’s economic infrastructure.

“The first problem,” Kelly explains, “is that our ports and our railways are not doing what they need to do.”

Many South African industries, including mining and agriculture, rely on the Port of Maputo as an export hub due to inefficiencies at Durban and Richards Bay. Fresh produce exporters, for instance, have faced devastating losses as goods perish while stuck at ports.

The numbers paint a bleak picture: the logistics industry is losing approximately R10 million per day, with R6 million attributed to transport costs and R4 million to auxiliary services like fuelling and repairs. Cumulative losses over the past month are estimated at R100 million, threatening the survival of small transport companies, some of which have been in operation for decades. “There are some businesses who have said, we’ve been stuck now for 72 hours… it’s the fourth time this month. We’re not making ends meet,” Kelly noted.

The crisis extends beyond South Africa. Neighbouring countries like Namibia, Zambia, and Botswana are also feeling the strain as trucks traveling to and from the region face significant delays. Kelly warned that if stability isn’t restored soon, international markets might seek alternative suppliers, further undermining the region’s economy.

Kelly highlighted the need for decisive action from South African leadership. “We’ve seen one or two ministers go along to the border… but there hasn’t been any movement from either our president or senior cabinet members,” he said. He urged SADC leaders to intervene and bring Mozambique’s conflicting parties to the negotiation table, stressing the importance of preserving Africa’s trade networks.

Listen to the full interview on Sabaahul Muslim with Moulana Sulaimaan Ravat.