Mozambique to expand trade facilitation agreements with neighbouring countries
FILE - For illustration purposes only. [File photo: Notícias]
The number of trucks from the Southern African Development Community (SADC) crossing Mozambique’s borders carrying various goods has fallen considerably due to the negative impact of the post-election protests that took place, mainly, between October and December of last year.
For example, since the beginning of the events and up until 15 December (2024), the number of cargo trucks using domestic corridors fell from 38,000 to less than 10,000 a month, according to Eduardo Sengo, executive director of the Confederation of Economic Associations of Mozambique (CTA).
The country is an important corridor for the hinterland territories without direct access to the sea, which is evident in the fact that 70% of goods destined for SADC countries pass through Mozambique.
This reduction in truck traffic represented a financial loss for several countries, such as South Africa, which suffered a loss of 143 billion rand, corresponding to around 7% of its exports.
Consequently, Sengo added, the decline in regional trade ends up having a direct impact on Mozambique, in addition to other direct damage resulting from the looting and vandalism of companies.
“The decline in this regional trade will have a major impact on families, given that 31% of trade between Mozambique and South Africa is informal, based on families who depend on this activity for their survival. These families will have difficulty meeting their basic needs,” he argued.
During the demonstrations, the Ressano Garcia border was sometimes restricted by blockades on the N4, in addition to the trucks being looted by protesters, especially at Kilometre Four in the Maputo Corridor. Ressano Garcia is the largest land border between Mozambique and South Africa, or paramount significance to socio-economic relations between the two states.
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