Freight logistics company Grindrod has cut its dividend by 55% due to the closure of the Lebombo - on the South African side - Ressano Garcia - on the Mozambican side - border during the period of the post-election demonstrations in Mozambique in the last quarter of 2024.

After reporting that its profits fell to one billion rand last year, the company saw its shares fall by 6%. But, according to IOL, this derailment is due to the prices of commodities and floods.

The group suffered losses of 4.4 million tons per year in volume and 200 million rand in total profits in the last quarter of 2024, due to the intermittent movement of the border.

The weaker results came despite the fact that the group has positioned itself through a series of agreements and initiatives to become a major operator and partner in a number of logistics infrastructure investment opportunities, including rail in South Africa.

Anchor Capital said in a note that although the recent civil unrest in Mozambique was a concern, Grindrod's results were well oriented, and its outlook was promising.