The post-election demonstrations in Mozambique have already caused alarming economic impacts, with the Port of Maputo recording losses of around 384 million Meticais in just 10 days. According to a preliminary report by the Confederation of Economic Associations of Mozambique (CTA), the delays in cargo handling, caused by the drastic reduction in the flow of trucks and logistical interruptions, are costing the country’s main port infrastructure dearly.
A paralyzed port
The Port of Maputo, which receives between 1,200 and 1,300 trucks a day, has seen this number drop to 300 trucks a day due to the demonstrations led by presidential candidate Venâncio Mondlane. During this period, 10 ships were stranded, unable to load or unload, resulting in immobilization costs of 3.8 million Meticais per day per ship. These delays increased the average length of stay of ships from two to three days to up to 10 days.
Cascading effects on logistics
The CTA report also revealed that the disruptions also affected the transport sector in the Maputo Metropolitan Region, where around 127 trips a day were canceled, accumulating losses estimated at 417 million Meticais for the sector. In addition, barricades and informal tolls imposed by the protesters have added to the challenges for traffic.
Widespread impact on the economy
The CTA estimates that, in total, the Mozambican business sector has suffered losses of 8.4 billion Meticais, of which more than 1 billion is directly related to logistics. Overall, the demonstrations resulted in an estimated loss of 24.8 billion Meticais to the national economy, equivalent to 2.2% of GDP, with sectors such as commerce, restaurants and transportation among the worst affected.
Worrying outlook
As the demonstrations continue, Eduardo Sengo, Executive Director of the CTA, warns of potential further disruptions to the country’s logistics corridors, particularly the Maputo corridor and the Beira corridor, the latter of which is critical for Zimbabwe. The implications include rising transportation costs, deteriorating supply chains and potential long-term effects on economic growth and employment.
This crisis highlights the vulnerability of critical infrastructure to socio-political instability and underlines the need for effective strategies to mitigate the economic impact of disruptive events. The continuation of these disruptions could aggravate the perception of risk on the part of international investors, compromising Mozambique’s competitiveness as a logistics and trade destination in the region.
