The economic strain in Mozambique continues to escalate as election protests evolve into widespread unrest. Tesla supplier Syrah Resources Ltd., which mines graphite in the country, declared force majeure due to the intensifying chaos. The protests, sparked by allegations of rigging in the October 9 election, have disrupted industries beyond Mozambique’s borders, affecting aluminum production and South Africa’s chrome exports.
The country’s largest brewery was raided, leading to a production halt, and the government has warned that civil service salaries may be delayed. With economic growth forecasted to plummet, Standard Bank has lowered its growth prediction for 2024 to 2.5%, less than half of the previous year’s rate.
Opposition leader Venâncio Mondlane, who has been leading the protests remotely, has called for a shutdown of all mines until January 15, further jeopardizing the nation’s economy. Meanwhile, police responses to the protests have been severe, with over 100 deaths reported since the unrest began in late October.
The ongoing tensions are deepening Mozambique’s financial woes, with disruptions affecting major sectors and concerns over delays in a $20 billion natural gas project. With growing unrest and logistical constraints, Mozambique’s economic future looks increasingly uncertain.
