Kawena Distributors (Pty) Ltd, a company that for decades supplied the Mozambican mining community with essential goods and services, has announced it will close its doors following a creditors’ meeting scheduled for 1 October.
The decision brings to an end more than 35 years of operations for the South African-based company, which built its reputation as a vital bridge between suppliers and thousands of Mozambican miners and their families.
In a formal notice to staff and customers, Group CEO Clem Dos Santos expressed “deep regret” that efforts to recapitalise the business had failed, despite intensive negotiations with government officials, including the Presidency of Mozambique.
The company’s troubles deepened after a wave of political unrest struck Mozambique at the end of 2024 and into early 2025. The disruptions triggered widespread financial losses, with Kawena citing the government’s critical delay in reimbursing Value Added Tax (VAT) as a significant blow to its cash flow.
“Despite all our efforts, we were unable to secure the investment required to recapitalise the company,” Mr Dos Santos wrote. “The current economic uncertainty in Mozambique, compounded by one of the worst liquidity crises in its recent history, made it impossible to obtain external financing within the time available.”
Kawena maintained that its management had worked “tirelessly” over the past 11 months to safeguard the company’s future. However, structural challenges and worsening market conditions left it without viable options.
The closure is expected to ripple across the Mozambican mining community, where many households depended on Kawena for access to goods and services.
The company’s letter acknowledged the hardships its employees, customers, and their families will now face. It sought to reassure them that administrators overseeing the business recovery process would supervise an “orderly closure” in line with South African corporate law, ensuring outstanding matters were resolved “fairly and transparently.”
“We recognise the difficulties this news brings to our employees, miners, clients and their families,” Mr Dos Santos said. “Please be assured that all pending matters will be handled with fairness.”
Founded more than three decades ago, Kawena Distributors carved out a unique niche serving miners in Mozambique, many of whom worked in South Africa’s gold and platinum belt. The company not only supplied goods but also acted as a trusted partner to miners’ families, building loyalty over generations.
“Kawena has proudly served the Mozambican mining community for over 35 years,” the CEO wrote. “It has been an honour to walk this path with you.”
While the firm’s formal operations will soon come to an end, the announcement carried a note of gratitude to employees and customers for their resilience and support during a period marked by financial instability.
The company’s closure underscores the broader challenges facing Mozambique’s economy. The country has been hit hard by political tensions, rising inflation, and difficulties in accessing foreign capital.
Kawena’s decision also reflects the vulnerability of cross-border businesses operating in regions prone to political and economic volatility. For many mining families, the company represented both a practical lifeline and a symbol of stability in uncertain times.
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