Violence and a Jailbreak Result in 248 Deaths in Mozambique

At least 248 people have died amid the escalating post-election turmoil in Mozambique, which has compelled a natural gas producer to curtail shipments to South Africa and forced a supplier to Tesla Inc to halt operations.

This week’s increase in fatalities came after a court endorsed the ruling party’s victory in the disputed elections held in October. Furthermore, over 1,500 inmates broke free from a high-security prison close to Maputo, the capital, on Wednesday, leading to 33 deaths as reported by police. By evening, authorities indicated that about 150 of the escapees had been recaptured.

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Read: Closure of Tesla supplier indicates escalating fallout from unrest in Mozambique

Protests erupted throughout the resource-abundant nation after opposition leader Venâncio Mondlane condemned the election results as fraudulent and called for peaceful demonstrations. However, riots broke out, leading to widespread looting and arson in Maputo and the neighboring city of Matola.

The unrest has prompted Sasol Limited of South Africa to reduce production at its Mozambique operations. Earlier this month, Tesla supplier Syrah Resources declared force majeure at its graphite mining locations.

According to Gustavo Placido, an analyst at Horizon Engage in Lisbon, such protests are expected to continue, targeting crucial roads and mining activities.

Nonetheless, he predicts that the ruling Mozambique Liberation Front will maintain its grip on power as its leaders manage the opposition’s claims regarding the 9 October elections.

“This is a challenging negotiation. No one is willing to make compromises,” remarked Placido. “The country is in turmoil, and investors are anxious.”

Sasol, which extracts natural gas and transports it to South Africa for gasoline production, announced a reduction in output “to ensure the safety of our personnel and assets,” as stated in a Wednesday announcement.

The company has informed its other gas customers that it is unable to provide complete supply.

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Mozambique’s main port suspends cargo operations amidst election chaos
Sasol’s gas supply challenges and volatile oil market increase sustainability risks
Grindrod to purchase remaining stake in Mozambican terminal for R1.4bn

South32, which operates the largest aluminum smelter in the region near the Maputo port, reported earlier this month that it had cut electricity supply to its production facilities “to protect raw materials and ensure operational stability.”

Syrah, which has been supplying battery materials to Tesla for testing ahead of anticipated commercial sales next year, declared force majeure at its Balama operation.

At least 121 people perished this week due to the unrest, bringing the total death toll since the protests began on 21 October to 248, according to the Decide Platform, a local monitoring group.

“The skies are thick with smoke from burning tires, and both public and private properties are being damaged,” stated the Center for Democracy and Human Rights in Maputo in a statement on Wednesday. “The ground is stained with blood. The state’s presence is lacking.”

© 2024 Bloomberg

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