Mozambique tension strains Malawian businesses

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Mozambique tension strains Malawian businesses

6:48 CAT | 22 Jun 2016

File photo / In recent weeks tankers in transit to Malawi were set ablaze by suspected Renamo rebels on the Beira route

Business executive in Malawi are warning that the cost of goods and services is likely to go up if the government does not take decisive action on the crisis in neighbouring Mozambique.

In recent weeks tankers in transit to Malawi were set ablaze by suspected Renamo rebels on the Beira route.

This followed the killing of four Malawians in Tete. The four were en route to South Africa.

Analysis by Capital FM’s Business and Economics Reporter Chimwemwe Mangazi:

For starters we have to remember that Malawi is a land locked country meaning that we rely on our neighbors to import some very important supplies including fuel and strategic goods for the industry, now this Beira route is the shortest if we are to consider transportation and other costs to have these supplies reach the country.

But questions are being raised as to where are the governments of these two countries in all this are, it seems no decisive action is being taken by the leaders of these two nations.

What these two governments are doing raises more questions than answers, because we attempted to get comment from the Malawi president but was referred to the government spokesperson, Patricia Kaliati, who told Capital FM that the two governments are involved in diplomatic talks on the matter.

It began with the killing of four Malawians, then a tanker was set ablaze followed by three other tankers and we also heard that two tankers with military escort were attacked.

This is what makes one wonder what exactly the authorities are discussing, if there are discussions after all, because as we report, the attacks are continuing and the Beira route is not safe.

Critics say the silence by the Mozambicans could be a sign that the Renamo rebels have become a tough nut to crack or it could be a pure misguided diplomatic policy that they don’t want to come in the open but are dealing with the situation silently.

Implications:

The implications are enormous, as I indicated that Malawi relies on its neighbors being land locked and Mozambique we would say borders with about two thirds of Malawi it means if we look for alternative routes which I believe would be costly then obviously prices of goods and services will go up as well and the already strained Malawians will have to pay more for goods making life even more unbearable. Business players have already warned about this.

The situation is attracting comments, some are even asking why can’t the armed soldiers of the Malawi Defense Force escort these vehicles for protection and I was speaking to one gentleman the other who said that during the Civil war in Mozambique there were soldiers who could escort vehicles passing through Mozambique but may be the question is on who will bear the cost.

All in all people really want to hear exactly what these two governments are doing on the matter as the consequences as I’ve already explained are dire for Malawians.

Source: Capital Radio Malawi