By Johnathan Paoli
South Africa and Mozambique could face a significant economic shock if operations at the Mozal aluminium smelter in Maputo are halted, with thousands of jobs and cross-border economic stability hanging in the balance.
This is according to the Congress of South African Trade Unions (Cosatu), which has warned that the potential shutdown would have far-reaching consequences for both countries.
Cosatu estimates that around 5 200 direct jobs in Mozambique and approximately 22 000 indirect jobs in South Africa linked to Mozal’s extensive value chain could be at risk should the smelter cease operations.
Mozal is one of the largest industrial employers in Mozambique and a critical anchor of regional manufacturing and logistics networks that stretch deep into South Africa’s economy.
Cosatu Parliamentary Co-ordinator Matthew Parks said the possible closure comes at an especially precarious moment for both countries.
South Africa is currently battling an unemployment rate of
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