Impact of Ship Cancellations and Smelters as Mozambique Awaits Voting Decision -

Since the end of October, protests following the elections in Mozambique have disrupted commerce and negatively impacted a key aluminum smelter, with the southeast African nation bracing for more unrest next week.

The Constitutional Council is anticipated to validate the disputed election results by December 23, while opposition leader Venâncio Mondlane has called for further protests contingent upon the ruling. The violent clashes have already resulted in the delay of 24 vessels, with six vessels choosing not to enter the main port in Maputo, as stated by terminal operator Grindrod on Thursday.

South32, which oversees the largest aluminum smelter in the region located near the port, declared that it has curtailed electricity supply to its production facilities “to preserve raw materials and maintain operational stability.”

According to Decide Platform, a local monitoring group, at least 130 deaths have been reported during the protests, with law enforcement being blamed for the violence. This situation has led to the most severe political unrest the country has experienced in years, affecting the economy and raising concerns among investors.

Mozambique’s $900 million eurobond has decreased for the ninth straight day, now valued at less than 81 cents on the dollar — marking its longest losing streak since July 2022. Moreover, Standard Bank Group’s local division has adjusted its growth forecast for 2024 down to 2.5%, in contrast to 5.4% last year.

This week, the protests have subsided after Mondlane called for a pause in demonstrations following a tropical cyclone that hit Mozambique’s north coast on Sunday. The storm has allegedly caused at least 73 fatalities, according to state television.

However, Mondlane cautioned in a livestream on Monday that the decision by the Constitutional Council will determine whether “the country enters a period of peace or descends into disorder and chaos,” as he has fled to an undisclosed location.

For more in-depth finance and business news, follow Moneyweb on WhatsApp here.