‘Local businesses under threat amid terror in Mozambique’ 30 March 2021

South African business interests in Mozambique are under threat after the outbreak of violence and a siege of the strife-torn town of Palma, where at least seven people have been killed. This was the view of Professor Irrshad Kaseeram, a lecturer on economics and international political economy, who said yesterday that the latest chapter of the perpetual invasion of terrorists into the Cabo Delgado province would result “in major uncertainties and deep losses” for local businesses. While the largest concentration of the Total LNG natural gas would be compromised, a number of local private investors in cheap real estate and other projects would be adversely affected, the University of Zululand-based economist said.

The implications for South Africa are an inflow of displaced people, and a longer wait at a higher price for the gas supply. All related (business) deals and projects involving South African-based companies will now be delayed (thus having a major knock-on effect on the local economy),” said Kaseeram. The Institute for Security Studies (ISS) said poverty and unemployment were among the challenges facing Mozambique that were being used by the insurgents as stimulus to garner support. Uncertainty still surrounds the number of people killed – including a Durban man – in last week’s attacks in the northern region, with Mozambique putting the death toll at seven.

… “Cabo Delgado is one of the most neglected areas where poverty is extreme and most social development indicators are among the lowest. This creates a breeding ground for organised crime, political elites and extremist religious groups to take root and fulfil their own agendas. The region is well known for the smuggling of precious stones, wildlife poaching and drug trafficking,” said Kaseeram… Kobus Marais, the DA’s spokesperson on defence, called for a troop surge comprising SADC member countries. International Relations and Co-operation (Dirco) spokesperson Clayton Monyela said: “A decision on the issue of military involvement can only be taken by the SADC. At the moment, the government there indicates they are in control,” Monyela said.