Mozambique Ports and Railways Face $10M Loss from Post-Election Chaos

Maputo, Mozambique - January 3, 2025

Mozambique Ports and Railways (CFM) has announced a staggering preliminary loss of approximately $10 million due to the inability to transport goods amidst the post-election protests. This revelation came from CFM Chairman, Agostinho Langa Jr., during a media briefing following an inspection by President Filipe Nyusi at the Ressano Garcia railway line.

The unrest has not only led to financial losses but also significant disruptions to the Maputo Corridor, a vital artery for the southern region of Mozambique and international trade. Protesters wreaked havoc, vandalizing key stations like Tenga and Matola-Gare in Maputo Province, and Cateme on the Sena line, alongside burning several company vehicles.

For public safety, CFM had no choice but to halt passenger train services, impacting thousands who rely on these affordable transport options. "I recently received several calls from residents in Tete Province who no longer have train services and are being forced to use public passenger transport, which costs five times more than the train ticket," Langa Jr. shared, underscoring the social impact of these disruptions.

Despite the devastation, passenger services in the southern region have been reinstated, though the infrastructure at Tenga and Matola-Gare remains compromised. The Sena railway line's operations are still being evaluated to plan the next steps.

Langa Jr. optimistically stated that with an end to the protests, normal operations on the Sena line could be restored within two days, although some equipment would need to be sourced from South Africa. This vandalism has also put at risk various CFM's social responsibility initiatives, including water provision in Matola-Gare.

To mend the broken infrastructure and resume normal operations, CFM estimates a need for at least $6 million in the immediate future.

This incident serves as a stark reminder of how political unrest can ripple through the economy, affecting not just large corporations but the everyday lives of citizens who depend on these services for their daily commute and economic activities.

Source: Noticias