There is no need to regurgitate what is currently happening in Mozambique. But what is important is to highlight what that crisis has done to the South African economy – and more importantly – what it has highlighted as the weaknesses and fail-points in the greater South African logistics chain.
The Road Freight Association (RFA) has repeatedly noted the security conditions, as well as interrupted logistics operations, to the various authorities – who have done admirable things above and beyond their daily requirements to address the symptoms (or consequences) of what is happening across the border.
It is very clear that, without the road freight route to the Port of Maputo – through Lebombo, that many South African mining companies face a very bleak future. Our own ports and rail systems have failed us (which is a shame) and the only alternative left to many industries was to make use of the Port of Maputo.
This has now been effectively cut off by the political unrest and continuing protests.
Is this not the time that our President steps in to bring about a peaceful resolution to what is happening in Mozambique? We have a Government of National Unity – which has many warts and tribulations – but is the most probable answer to progress.
We need a Statesman to explain to Mozambique that our country is suffering – and that there needs to be a resolve to agree on the way forward – and whilst that is happening, the corridor to the Port of Maputo needs to be secured. At all costs and by any means.
In the meantime, businesses across the SADC region are looking at bleak prospects in the interim. If you cannot get your goods to your customer (exported through the Port of Mozambique), then there is no revenue, no funding and no sustainable resources to continue in the business.
Our drivers, our trucks, our customers’ cargo, the business image of thousands of African businesses are all threatened day after day. Drivers are beaten (and they have nothing to do with the political landscape in Mozambique), trucks are looted, burnt, roads to the Port of Maputo blockaded and the very Port itself placed under siege.
In the past week there has been an inevitable and slow progression towards the reality that ravaged Mozambique in the early 1970s – a destructive civil war that left the country in ruins with a desperate population hanging on to life. Starvation, disease and land mines haunted every citizen every day.
Do we want to return to that? NO. However, without the intervention of a Statesman (or Woman), this scenario will become ever more true (violence erupts with outright war between various factions and the whole country becomes unstable).
This means any form of product or commodity and passengers/tourism will be halted into and through the country.
The severe disruption of all trade logistics (air, rail, road and sea) will come to a halt and that means huge financial repercussions for both countries (and the greater SADC): loss of revenue in terms of duties and income tax, VAT, company tax, as well as loss of income for businesses (large and small).
The RFA estimates that the full closure / suspension of Port of Maputo operations and the ceasing of any road freight logistics within Mozambique costs around R10 million a day (total cost to SA economy only). Direct losses to freight logistics is around R6mil (includes damage to / loss of vehicles, injury / loss of drivers, looting of loads, inability to retrieve vehicles / disruptions of exports / imports / loss of business due to consignment loads not being fulfilled / loss of fleet capacity to perform linked or other load agreements, loss of revenue for operations / extra security deployments.
The remaining R4 million a day is lost in other sectors including servicing, manufacturing, tourism, retail, mining and agriculture (some of which have more reliance of road freight transport than others).
That means less jobs, higher unemployment, hunger, and all those other “small” things that go hand-in-hand with a collapsing economy. One business at a time – so an economy collapses, and we have seen enough of that in Africa already.
The RFA calls on those who have the connections, the status, the ability to intervene to play the role of statesman. This is about Mozambique, South Africa and the SADC region.
