Overview of SA’s economic relations with Mozambique

Before launching into a study of  the social responsibility activities of  Mozal and Sasol directly, it is appropriate to locate these in the wider context of trade and investment relations between South Africa and Mozambique.

Contemporary economic relations between the two countries have their origins in the late nineteenth and early twentieth centuries. Four dynamic factors have built such linkages:  first, the strength of the South African economy within the region; second, the weaknesses and public policy options of the Mozambican economy; third, the weakness of the South African economy internationally; and fourth, the dominant role of the minerals-energy complex around which most of the political, social and economic dynamics of capital accumulation in South Africa has been structured. The initial economic linkages between South Africa and Mozambique were based initially on migrant labour and transport services, followed by the extension of  trade and investment relations.