Alarming trade disruptions: Maputo corridor in crisis

The geopolitical conflict in Mozambique comes at a highly sensitive time for South Africa, with logistics and the supply chain already strained by several other disruptive challenges, says JUANITA MAREE.

South Africa’s business community has voiced concern over the Southern African Development Community’s (SADC’s) slow response, urging member states to assume an immediate leadership and mediation role in order to restore law and order and stabilise trade operations vital to the regional economy. Such actions, they insist, are essential for the safety of citizens on both sides of the border and to prevent further destruction of critical infrastructure, which facilitates the smooth flow of regional and international trade through the Port of Maputo and to destinations inland and beyond.

Trade and transport corridor specialist Barbara Mommen notes that while there is a deep awareness of, and respect for, the complex and challenging circumstances leading to the current situation, the primary concern centres on the severe challenges now facing trade. This applies not only to South Africa and Mozambique, but across the region as it grapples with the destabilisation of the Maputo Corridor.

As the regional body responsible for trade, development, and investment, the SADC must be tasked with addressing the escalating post-election violence in Mozambique. Infrastructure at the Ressano Garcia Border Post and the KM4 facility has suffered extensive damage, with ongoing violence threatening further disruptions. Lives are being lost, and livelihoods are at risk throughout Southern Africa.

The need to temporarily close the Lebombo border has intensified the crisis. The economic consequences of this situation are likely to be long-term, affecting not only Mozambique, but also other SADC countries (particularly South Africa and Zimbabwe) as halted trade raises the prospect of economic setbacks. The supply chains currently utilising the Maputo Corridor operate on a global scale; the stability required for international competitiveness is placing these fragile supply chains at considerable risk.

Maputo has long been a crucial port for regional and international trade, growing substantially in importance over the past 15 to 20 years through a successful public-private concession model. This approach has enhanced capacity and driven growth and investment into Mozambique – one of the world’s poorest economies – as well as into Southern Africa more broadly.

To varying degrees, the ramifications of this crisis will have a long-term adverse impact on all countries in the SADC region, since it will take time for traffic to and from the Port of Maputo to stabilise and return to previous volumes. The loss of critical infrastructure supporting trade and transport along the corridor will be felt for months, if not years. Rebuilding this infrastructure and replacing essential equipment will place substantial financial strain on regional governments. Additionally, many vital jobs are now at risk, while the ripple effects on informal, small, and medium-sized enterprises will also be felt for some time. Businesses are likely to struggle forward into an uncertain future in the wake of this disruptive period.

As an industry representative, the Southern Africa Association of Freight Forwarders (SAAFF) stands ready to work collaboratively with the authorities on implementing strategic processes to 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 flourish as an integrated, unified trading bloc, it must remain a reliable, competitive route and destination within regional and global supply chains. Achieving this requires immediate consultation with leading organisations in the region, and assurance that our leadership will address conflict-related challenges affecting both business in general and logistics specifically. Disruptions to logistical activities cannot be allowed to persist, as these are essential enablers of economic growth and revenue generation in the region.