By 
By Bahle Gama
The Road Freight Association says the closure of the Lebombo border post between South Africa and Mozambique, and the subsequent disruption to cargo moving through the Maputo Port, is costing the South African economy an estimated E10 million per day.
On Thursday, November 7, 2024, the Border Management Authority temporarily closed the border crossing into neighbouring Mozambique. This was after a new wave of violent post-electoral protests that broke out around Maputo.
The protests that have led to deadly clashes in several cities are courtesy of last month’s disputed presidential election, won by Mozambique’s ruling Frelimo party.
In a statement, CEO Gavin Kelly disclosed that direct losses to freight logistics are around E6 million, including damages to and loss of vehicles, injuries to drivers, looting of loads and disruptions of imports and exports.
“Companies also lose business due to unfulfilled consignment loads and experience revenue losses due to the necessity of deploying extra security,” he said.
The border and port closures come as an increasing number of South African export businesses rely on Mozambique’s Port of Maputo to transport their products to overseas markets.
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According to reports, the main reason Maputo is favoured among exporters is because of the ongoing logistical challenges at South Africa’s ports and railways.
The Port of Maputo has become a noteworthy competitor to South African ports, overtaking Durban in the World Bank’s container port performance index for 2023. It came in 329th out of 405 ports globally, while Durban was ranked 399th.
According to Kelly, there have so far been eight days of delays at the border crossing, with full closure over the last four days, adding that hundreds of trucks carrying cargo, most notably chrome, have been stranded. South Africa is the world’s biggest chrome exporter.
Besides the closure of Lebombo, the Port of Maputo also halted activity and logistics group Grindrod subsequently announced on Sens that it would temporarily suspend its port and terminal operations in Maputo and Matola.
Grindrod’s terminal at the Maputo Port handles cargo volumes of approximately seven million tonnes, the group said previously.
“Shareholders are advised that following the closure of the Lebombo Border connecting South Africa and Mozambique, a suspension of rail operations, and to ensure the safety of our employees, Grindrod’s port and terminal operations in Maputo and Matola are temporarily suspended,” the company noted.
The company stated that the situation will be assessed continually before any resumption.
On another note, the Southern Africa Association of Freight Forwarders (SAAFF) voiced concern over the slow response to the crisis by the Southern Africa Development Community (SADC).
It called on member states to move immediately into a leadership position as mediators to restore law and order and stabilise trade operations.
SAAFF CEO Dr Juanita Maree said the geopolitical conflict in Mozambique comes at a very delicate time for neighbouring South Africa when logistics and the supply chain are under pressure from several other disruptive challenges.
“The need for the temporary closure of the Lebombo border and the resultant economic impact extends beyond Mozambique to all other countries in the SADC region but in particular, South Africa and Zimbabwe, as halted trade raises the risk of economic setbacks,” Dr Maree said.
She further noted that the supply chains currently utilising the Maputo Corridor compete internationally, and the predictability required for ensuring international competitiveness is putting these fragile supply chains at significant risk.
Dr Maree said to varying degrees, the implications of this crisis will have a long-term negative impact on all the countries in the region, as it will take time for traffic to and from the Port of Maputo to stabilise and restore to previous volumes.
“Additionally, many essential jobs are now at risk, while the ripple effects for informal, small and medium businesses will be felt for some time. The business will limp forward into an uncertain future after this troubled, disruptive period,” she said.
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Speaking to Moneyweb, Minerals Council South Africa said the closure of the Lebombo border post used by trucks transporting South African minerals to the Maputo harbour for export is of particular concern to the chrome industry.
Of the 17.7 million tonnes of chrome ore and concentrate that South Africa exported in 2023, 9.4 million, or 53 per cent, was exported through Maputo. Importantly, by far the majority of that 9.4 million was trucked by road to Maputo.
According to the Minerals Council, there are a few weeks of chrome inventory at the Maputo harbour.
“However, Grindrod has stopped port operations, which further constrains flows of chrome to overseas customers. A prolonged border closure of weeks rather than days will have a serious impact on South African chrome exports,” said the Council.
