South Africa unrest cripples Zimbabwe’s supply chains
Social unrest, which recently rocked several regions in South Africa, has crippled Zimbabwe’s supply chains, the Confederation of Zimbabwe Industries (CZI) said on Monday.
Production will be badly affected in Zimbabwe as our businesses depend heavily on South Africa for the necessary raw materials, CZI emphasizes in its latest report, “The Impact of Social Unrest in South Africa”.
According to the document, the burning of trucks and the closure of roads in South Africa resulted in serious disruptions to the supply chain. “There have been delays in the movement of goods and, in some cases, a complete stop,” the confederation explains.
Recalling that the majority of Zimbabwe’s imports come from South Africa, including essential raw materials, the CZI stressed that the country’s companies were depleting their stocks as the unrest continued in South Africa.
In this context, the organization added, “shortages of goods in shopping centers will be observed as local production begins to decline due to the lack of raw materials, causing prices to rise.”
Meanwhile, Zimbabwe will face inflation fueled by rising prices for goods from South Africa due to violence and looting that have plagued the country, the report argues.
Regarding Zimbabwean exports, the document warns that they will be strongly affected due to the decline in South African demand and the risk of using its roads and ports to reach other international markets.
Following the incarceration of former South African President Jacob Zuma for contempt of justice, large cities such as Johannesburg, Durban, and Pietermaritzburg have been ravaged by violence and criminal acts that have taken root in the province of KwaZulu-Natal then spread to other parts of the country, including Gauteng, considered the most populous province.
