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General Protests: Informal Importers Claim Losses of Over $3M and Warn of Possible Shortages of Basic Commodities

General Protests: Informal Importers Claim Losses of Over $3M and Warn of Possible Shortages of Basic Commodities

Mozambique has been experiencing tense moments since October, due to violent demonstrations taking place in almost all the provinces, with the greatest incidence in the city and province of Maputo. The situation has already forced the suspension of several companies and put thousands of Mozambicans out of work, as well as causing huge losses.

Since the protests began, public infrastructure has been vandalised, borders closed, commercial corridors paralysed, shops looted and some bank branches destroyed, which in the long term could lead to a rise in the cost of living, a shortage of basic products in the markets and difficult access to minimum services.

Like the hotel and tourism sector, the area of informal imports of basic products is also complaining of significant losses generated by the demonstrations, which, according to the Mozambican Association of Small Informal Importers, amount to more than 237.2 million meticals (3.7 million dollars, 70 million rands).

In an exclusive interview with Diário Económico, Sudecar Novela, president of the mukheristas (informal importers of basic products from South Africa) organisation, said that the closure of the borders, especially that of Ressano Garcia in Maputo province (which links Mozambican President to South Africa), has made it difficult to bring goods into the country to supply the markets.

‘We weren’t able to bring the goods in as planned. Even though they were announced in good time, in some places the demonstrations took place ahead of schedule, which affected our work because the lorries were held up in South Africa. Violence was a reality in Ressano Gracia and traffic was restricted, so there was a negative impact on our sector,’ he said.

Novela clarified that at the peak of the protests, goods were held up for many days and eventually deteriorated, which contributed to the increase in losses. ‘We estimate losses at more than 70 million rand, there was a lot of merchandise that spoilt and went straight to the dump.’

Sudecar Novela, president of the Mozambican Association of Small Informal Importers

Availability of products in the face of the recent paralysing of the protests

The demonstrations have currently been paralysed since 30 December, which has led to the resumption of activities, especially in formal and informal commerce. In this sense, he emphasised that this truce has helped to supply Maputo’s main wholesale market (Zimpeto market), and that they are working to recover from the losses.

‘We managed to supply the market and, with this truce, we are working to recover from the losses. So far we have products in the Zimpeto wholesale market, which is our supply centre. We have onions, potatoes, cabbages, carrots and other products,’ he said.

Sudecar Novela said that, despite the difficulties, the prices of the products remain stable: ‘10 kilograms of onions cost between 200 and 250 meticals, and the same quantity of potatoes costs between 300 and 450 meticals.’ However, he warned of the high possibility that ‘prices could rise in the coming days, as we are facing a situation of unrest.’

Military personnel at the Ressano Garcia border crossing

Warning of possible shortages of basic products

During his conversation with DE, the president of the import organisation warned of a possible long-term shortage of products on the markets if the situation of instability persists, which could lead to a food crisis, given that the country is dependent on food imports, mainly from South Africa.

‘We are at an unpredictable moment, when demonstrations can happen at any time. With the unrest, the lorries with imported supplies won’t arrive on time, and the price at the source of purchase could also change,’ he argued.

‘We could have serious food problems. When there are demonstrations, the roads are closed and that doesn’t go well with commerce. If the scenario repeats itself for seven days or more, the food situation will become chaotic, we’ll have too little supply for too much demand and prices will also skyrocket,’ he warned.

However, with regard to the looting that took place during Christmas week in various commercial establishments in the city and province of Maputo, Novela guaranteed that his associates had not reported any losses.

‘We weren’t victims of looting, because as soon as the situation began, we gave the order to close the Zimpeto market. The goods were well covered and the little that was on display was sold immediately,’ he explained.

The country has been the scene of demonstrations organised by supporters of the opposition candidate, Venâncio Mondlane, who are contesting the results released by the Constitutional Council. Civil society organisations say that clashes between demonstrators and the security forces have resulted in almost 300 deaths and around 600 injured.

The Constitutional Council (CC) proclaimed Daniel Chapo, the candidate supported by the ruling Mozambican Liberation Front (Frelimo), as the winner of the election for Mozambican President, with 65.17% of the votes, succeeding Filipe Nyusi in office, as well as the victory of Frelimo, which retained its parliamentary majority, in the general elections on 9 October.

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The announcement sparked new chaos across the country, with pro-Venâncio Mondlane demonstrators – who won just 24 per cent of the vote – taking to the streets, setting up barricades, looting and clashing with the police, who have been firing shots in an attempt to restore order

Text: Cleusia Chirindza

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