MAPUTO, Sept 30 (The African Portal) – South African transport company Kawena Distributors said on Monday it will close its operations in Mozambique, citing years of delayed value-added tax (VAT) refunds and financial losses linked to post-election unrest.
The company, which has operated for 37 years, primarily transported goods belonging to Mozambican miners working in South Africa.
“Despite all our efforts, we were unable to secure the investment necessary to recapitalize the company. There has been a lack of VAT refunds for several years which is a factor in the lack of liquidity needed to maintain operations in Mozambique,” Kawena said in a statement.
It also pointed to “devastating financial losses caused by the riots and disturbances” that followed the October 2024 general elections as a factor in the decision.
“Over the last eight months, management has worked tirelessly to safeguard the company’s future and has maintained contacts at various levels, including with the head of state, but has not achieved recapitalization,” the company said.
Kawena added that “the current uncertainty in the Mozambican economy, compounded by one of the worst liquidity crises in its history, has made it impossible to obtain external financing.”
The company said administrators would oversee “an orderly closure process, ensuring that all outstanding issues are addressed fairly and transparently, in accordance with South African law.”
“This was not the desired outcome, but we are no longer in a position to continue operating in Mozambique. Kawena has proudly served the Mozambican mining community for over 35 years, and it has been an honor to walk this path,” it said.
Earlier in September, another South African firm, Duys Engineering Group, announced it was suspending certain operations in Mozambique after its main client, the Mozal aluminium smelter, cancelled related services.
