MBABANE: Eswatini is feeling the pinch of Mozambique’s month-long unrest. The country is estimated to lose E3 million for each day the country’s imports and exports are stalled.
Economist Senele Sibiya of the University of Eswatini estimates that trade growth between the two countries has surged upward by about 90% since 2017. Sibiya says trade between the two countries now averages over E1billion annually, showing the increasing realization of the importance of trade between the two countries.
Emaswati now import mainly cement, electricity and fuel and exports the Kingdom’s principal export – sugar by rail to the Mozambique port of Maputo.
Maputo which is about 183 km from Manzini and about 90 kilometres from the Lomahasha border has become a critical source of consumer goods – especially used clothing imported from Europe that supplies the dobhapansi business. This activity is now one of the key elements of the informal sector, especially in the urban areas.
“Trade with Mozambique averages E3million per day. This makes any potential loss of this revenue a significant impact on the economy,” the economist said.
The market for imported nearly-new clothing that flows through the port city of Maputo and imported into Eswatini in bales has become an essential support for the poor. “Income from selling “dobhaphansi” is a very important source of support for families as it is essential for most of them to be able to afford putting food on the table. Two days without this business for some of those people might mean no food on the table as they have no other source of earning a living.”
Even though the road to Maputo remains open and the two borders at Lomahasha and Mhlumeni have not been disturbed, the instability of the month-long street protests, by day and also on some occasions by night makes travel difficult. The Eswatini Government has not issued any travel advisory on the situation.
Since the disturbances erupted following the disputed results of the October 9 elections both South Africa and Zimbabwe have had to close borders in fear of the violence spilling onto their territory. South Africa closed its Komatipoort border on Thursday but re-opened it over the weekend after calm was restored.
The disturbances are also pushing refugees into neighbouring countries. So far 35 refugees have been registered at the Malindza Refugee centre though many are expected to melt into the countryside.
As the post-election violence surged last week, South Africa closed its Lebombo border which is close to the Mozambique town of Ressano Garcia. The closure resulted in disruption to cargo moving through the Maputo Port with losses of approximately R5 billion, Moneyweb reported, quoting Gavin Kelly, CEO of the Road Freight Association.
Meanwhile the Mozambique crisis is expected to top the agenda on the SADC leaders’ summit beginning in Harare on Sunday. “The summit is expected to be briefed on recent political events in the region, including the recent elections in Mozambique and Botswana and the upcoming polls in Namibia,” Zimbabwe minister of information Jenfan Muswere said.
Jm/today/15.11.2024
