The political unrest in Mozambique is significantly disrupting Eswatini’s sugar industry, forcing the country to seek alternative routes for exports. Heavy reliance on the Maputo port terminal complicates logistics amid political turmoil. Stakeholders have raised concerns regarding increased transportation costs and delays as they explore solutions to maintain supply chains in light of Mozambique’s instability.
The political unrest and protests currently affecting Mozambique have had a significant impact on Eswatini’s sugar industry. The country is experiencing disruptions in its supply chains and is compelled to seek alternative export routes. Eswatini relies heavily on the Maputo port terminal in Mozambique to ship its raw sugar to markets in the European Union and the United States, a critical infrastructure since the mid-1990s. This terminal is jointly owned by Eswatini, South Africa, Zimbabwe, and Mozambique, making it vital for the sugar sector’s operations.
Nontobeko Mabuza from the Eswatini Sugar Association (ESA) has expressed concerns that the ongoing unrest in Mozambique threatens Eswatini’s export capabilities. “The option, however, is for us to move the sugar via the Durban [South Africa] port, but this would come at an additional cost,” Mabuza stated. This change could lead to longer transit times and greater strain on existing transport systems as clients may opt to receive their sugar shipments from Durban instead of Maputo.
In the previous year, the ESA achieved $305 million in revenue from over 26,000 tons of sugar exported, utilizing trade agreements through the U.S. African Growth and Opportunity Act. However, the instability in Mozambique has resulted in severe traffic congestion at the border, complicating logistics for both importers and exporters. Bhekizwe Maziya, the Chief Executive of the national agricultural marketing board, elaborated that the closure of the Lebombo border post has forced transport to divert through Eswatini en route to Mozambique, exacerbating border congestion and delays.
The unrest has been fueled by opposition presidential candidate Venancio Mondlane, who claims victory in the recent election, consequently leading to significant disruptions in traffic across Mozambique’s major roads and violent confrontations resulting in over 100 casualties. Activist Solomon Mondlane highlights that the instability in Mozambique poses a systemic risk to economies within southern Africa, particularly for landlocked nations like Eswatini that depend heavily on Mozambique for trade routes. “With the unrest showing no signs of abating, it is essential for neighboring countries to assess their own trade dependency on Mozambique and identify alternative routes if necessary to mitigate potential disruptions,” he stated.
Political analyst Sibusiso Nhlabatsi has called for the Southern African Development Community (SADC) to enhance its conflict management strategies in light of these internal conflicts within member states. He emphasizes the importance of establishing frameworks that foster accountability among member nations to safeguard regional stability.
Political unrest can pose significant risks to trade and commerce in neighboring countries, particularly for landlocked nations like Eswatini that rely on transit routes for exports. The turmoil in Mozambique impacts various sectors, especially agriculture, by hindering the movement of goods. The reliance on specific ports, such as the Maputo terminal, underscores the vulnerability of Eswatini’s sugar export operations amidst the ongoing instability in Mozambique, highlighting the need for reassessment of trade dependencies and strategies for trade continuity.
In conclusion, the current political upheaval in Mozambique has had profound implications for Eswatini’s sugar industry, disrupting established supply chains and necessitating the exploration of alternative export routes. As Eswatini grapples with potential cost increases and longer delivery times of sugar shipments, neighboring countries must evaluate their trade dependencies on Mozambique to mitigate risks. The call for enhanced conflict management strategies by regional organizations underscores the importance of stability in maintaining economic continuity across southern Africa.
Original Source: www.voanews.com
