South African businesses with export interests through Mozambique have been cautioned to tread lightly as the week-long lull in protests is likely to resume with the return of opposition leader, Venacio Mondlane, who has indicated a fresh wave of protests were on the cards.
This is as Mondlane suspended protests last week after that country’s Constitutional Council reaffirmed the ruling Frelimo as the winner of the contested October polls.
However, during his fanfare return to the country today Mondlane hinted at announcing more targeted protests on his return from self-imposed exile.
Road Freight Association (RFA) CEO, Gavin Kelly, said the about week-long calm after Mondlane postponed protests had seen a decline in the volume of normal business to about 64% capacity, mostly consisting of essential freight including medical supplies, fuels and food.
Kelly said prior to the lull, the association had estimated daily losses of the Lebombo border closures to have been a daily cost of R10 million, 60% attributed to transporters and the rest to the support and service industries.
He indicated that the full cost of the conflict to South African business was not fully constituted yet as there were still trucks unaccounted for inside the country, which posed direct and opportunity costs for owners who could not utilise them for business.
“We are watching the risk situation, not only in Mozambique but on the South African side as well as the trucks are subject to opportunistic crimes, being parked in the long queues,” Kelly said.
“We are saying to our members they can continue to operate with caution and as soon as issues are picked up by the Border Management Agency or other agencies, they should be ready to stop. This poses humanitarian challenges as well for the operators as they have to account for the upkeep of drivers.”
Kelly said the disruptions had increased lead times for operators with alternative routes, such as passage through Eswatini, proving costly as the roads there were mountainous.
Business Unity South Africa (BUSA) said through its communications department that South Africa’s business coalition through the National Crises Management Committee was expected to make its report on its assessment of the Mozambique tomorrow.
According to latest reports, the post-election unrest has raised security concerns and The Presidency has deployed an advance team from the Presidential Protection Services to look into the safety prospects in Mozambique ahead of the anticipated Presidential Inauguration of President-elect, Daniel Chapo, next Wednesday.
Speaking at the Progressive Business Forum Presidential Golf Day in Cape Town, President Cyril Ramaphosa called for peaceful dialogue between Chapo and Mondlane.
“We always attend each others’ inauguration. As the day advances, we’ll look at our programme. We are watching very closely what is happening in Mozambique,” Ramaphosa said.
“As SADC members we are prepared and able to give them as much support to be able to navigate their way out of the challenges they face.”
Thousands of people turned out to meet Mondlane, who returned home from more than two months in exile today, to promote his claim that he won the October presidential election.
Mondlane’s return comes a week before the inauguration of Chapo who was proclaimed winner of the vote. Mondlane claims the vote was rigged in favour of Frelimo, which has held power for 50 years.
BUSINESS REPORT