Southern African coal exports have surged over the first eight months of the year, driven by a scramble for alternative fossil fuel supplies following the blockade of the strategic Strait of Hormuz. This coal is used notably for the production of fuels. Within the context of the blockade of the Strait of Hormuz, which causes supply difficulties and sharply rising prices, African coal has regained its competitiveness, making southern African coal highly attractive once again.
Shipments leaving terminals in South Africa and Mozambique have surpassed 60 million metric tonnes, marking the highest volume recorded over the past decade. Maritime tracking data analyzed by Greece-based Ursa Shipbrokers indicates a growth rate of 11%, outstripping a broader global sector growth average of 3%. Dionisios Tsilioris, an analyst at Ursa Shipbrokers based in Greece, described this as a historical milestone.
Strait Blockade and Indonesian Quotas Fuel Southern African Surge
The revival of the southern African coal trade stems from a confluence of global supply disruptions. Richard Senkondo, in charge of the No New Coal
campaign for an environmental and health NGO consortium, confirmed that since the closure of the Strait of Hormuz, Africa has become the quick fix to the energy crisis,
noting that coal is an immediate solution for developed nations.
The ongoing blockade of the Strait of Hormuz has choked off regional liquefied natural gas (LNG) shipments. As energy costs climb and supply chains fracture, overseas buyers have turned to African producers to bridge immediate generation deficits.
Ioanna Matsouka, an analyst at Ursa Shipbrokers, noted that the absence of Middle Eastern LNG exports forced buyers to pivot rapidly toward alternative exporters. She stated: I would say this is explained by the implementation of coal export quotas by Indonesia, which is the world’s leading exporter. And if we add to that the fact that, due to the disruptions in the Strait of Hormuz, there were no LNG exports to cover energy production, we witnessed this sharp increase in exports from South Africa and Mozambique.
This demand spike has delivered record profits to mining enterprises across the sub-continent.
Environmental Backlash and Infrastructure Expansion in Tanzania
Environmental advocates warn that the short-term energy fix carries severe long-term consequences. Richard Senkondo, in charge of the “No New Coal” campaign for an environmental and health NGO consortium, criticized the rapid expansion of fossil fuel extraction.
Senkondo stated that Africa has effectively become a quick-fix remedy for developed nations seeking immediate energy security at the expense of climate targets.
Financial investments into the region’s extractive industries are accelerating alongside these infrastructure projects.
Critics argue that these multi-billion-dollar fossil fuel commitments directly undermine government pledges to decarbonize regional economies, arriving just as the continent braces for severe meteorological disruptions driven by the impending El Niño phenomenon.
