the outbreak of violence affects the country’s economy

the outbreak of violence affects the countrys economy

Mozambique has been experiencing a new outbreak of violence since Monday and the confirmation by the Constitutional Council of the election of Daniel Chapo as head of the country. According to the NGO Plataforma Decide, 134 people have been killed since the start of the week. Economic players are concerned about these troubles which have already affected the operations of foreign companies.

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The Australian mining company South32 is undoubtedly the most affected at the moment. Its aluminum smelter located on the outskirts of Maputo had to reduce its production volume. Numerous road blockages have made the delivery of raw materials very difficult.

The British company Gemfields is also worried about the activities of its subsidiary. La Montepuez Ruby Mining MRM which exploits one of the largest ruby ​​deposits in the world in the province of Cabo Delgado.

Production is regularly suspended there due to jihadist attacks in particular. And Gemfields fears disruption, several buildings were set on fire near the mine earlier this week. “ Groups associated with illegal ruby ​​trade profiting from political unrest », According to the miner.

On the hydrocarbon side – South African petrochemical giant Sasol has reduced natural gas production at its central processing plant in Mozambique. A way to ensure the safety of its staff and property, according to its spokesperson.

South Africa is dependent on Mozambique for its gas imports. All these actors are monitoring the situation very closely, with the fear of a general conflagration which would more severely affect the country’s economy.

The road that crosses the country is also blocked in places. So it is difficult for our province to receive goods, while we depend a lot on products imported from South Africa, which must transit through Maputo.

Arcénio Cuco, professor in Nampula (northern Mozambique)

Liza Fabbian

Also readIn Mozambique, towns paralyzed by violence and residents plunged into fear

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