Southern African coal exports reach ten-year high

Coal exports from Southern Africa have reached a ten-year high, driven by energy supply disruptions in the Strait of Hormuz. Analysts from Ursa Shipbrokers report that South Africa and Mozambique exported over 60 million metric tonnes of coal during the first eight months of the year, representing an 11% growth rate that significantly outpaces the global average of 3%.

The surge is attributed to the Strait of Hormuz crisis, which has destabilized energy supplies and inflated prices, making coal a sought-after substitute for certain buyers. Additionally, potential export limits from Indonesia, the world's top coal producer, have further opened market opportunities for African producers.

While the economic boost is notable, the trend faces criticism from environmental advocates. The 'No New Coal' campaign highlights that this resurgence in coal demand acts as a setback for global decarbonization efforts. Regional infrastructure remains a variable; while South Africa has established mining and export sectors, its railway networks face constraints, whereas Mozambique relies on corridors connecting to the ports of Nacala and Beira.