Mozambique’s main port halts taking cargo after election unrest

Riots broke out at Mozambique’s main border crossing with neighbouring South Africa on Tuesday, prompting authorities to close it.

Mozambique’s Maputo port, a key chrome export hub, has stopped receiving cargo due to ongoing election unrest in the southeast African nation.

Riots broke out at Mozambique’s main border crossing with neighbouring South Africa on Tuesday, prompting authorities to close it.

The move has left hundreds of trucks carrying cargo including coal, which usually cross the border en route to Maputo daily, stranded. ADVERTISEMENT CONTINUE READING BELOW

“The Maputo Port Development Co, in coordination with customs and other relevant Mozambican border authorities, has taken the decision to stop reception of cargo at the Port of Maputo,” the company that operates it said in a note to customers Wednesday.

In the wake of the unrest, JSE-listed logistics group Grindrod has temporarily suspended its port and terminal operations in Maputo and Matola.

“Shareholders are advised that following the closure of the Lebombo Border connecting South Africa and Mozambique, a suspension of rail operations, and to ensure safety of our employees, Grindrod’s port and terminal operations in Maputo and Matola are temporarily suspended,” it said in a Sens update on Thursday.

“The situation will be assessed continually prior to any resumption,” the company added.

Grindrod’s shares traded just over 2% weaker on the news.

Tensions have rocketed in Mozambique after its 9 October elections that extended the ruling party’s 49-year rule, and which the opposition rejected as rigged.

South African authorities closed the land border at Lebombo after protesters torched vehicles on the Mozambican side, and government officials from that country fled across seeking refuge.

© 2024 Bloomberg

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