Progress in logistics but SA is not above water

Now is the perfect moment to assess the lessons we have learned, evaluate performance and focus on how South Africa and the government of national unity can apply these critical lessons to build resilience, avoid mistakes and safeguard the future of SA Inc.

Progress is evident, from a logistics point of view. A growing political maturity is emerging in some critical areas, fostering positive change, boosting confidence and introducing new dynamics.

Policy reforms are unlocking new opportunities, opening the way for some national institutions to deliver improved operational performance.

The Presidency has renewed its mandate to the national logistics crisis committee (NLCC) for 2025.

This in itself illustrates that the crisis in logistics continues, emphasising the need for sustained focus on finding solutions through public-private consultation and government’s commitment to strategic cross-sector collaboration.

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The extended period in mission for the NLCC is also recognition of the good outcomes this collaborative consultative model is delivering.

Opening critical projects to private sector participation is essential to the transformation. The democratisation of energy production for national consumption after years of poor performance finally put an end to load shedding. It is notable this was done under SA management, leadership, expertise and oversight.

In search of growth and development, the introduction of concessionary opportunities opens the way to new dynamics and funding models, enabling critical projects for private sector participation, which are fundamental in the transformation away from the inefficient monopolised service platform retarding progress.

The introduction of concessionary and third-party opportunities to the business sector cuts across two major operations at the heart of the logistics sector: the management and operation of Pier 2 KwaZulu-Natal main port and the opening to third-party rail operators of the opportunity to bid under the terms of the Transnet Network Statement, signed by Minister of Transport Barbara Creecy at the end of 2024.

Drafting of the legal platforms to serve third-party agreements takes centre stage as terms and conditions will underscore the rate of success for these ambitious programmes.

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The legal basis serves as key administrative tools to steer working arrangements for concessionary and third-party opportunities in areas fundamental to job creation, economic growth and the achievement of SA’s National Development Plan and fixing of the national logistics ongoing crisis.

At this point, it is necessary to revisit the darker side of our recent history lest we fall prey to another man-made disaster– the devastation of state capture – a phenomenon fuelled by weak leadership, systemic corruption and propped by a total void of governance, transparency and accountability.

State capture was followed by looting of public funds under the Covid pandemic blanket, alongside the systemic abuse of well-intended programmes such as preferential procurement remain possibilities for serial behaviour as we enter a new era.

The country is on a growth trajectory, but there is no room for error. The lessons we’ve learned demand absolute transparency and active engagement from public and private sector experts.

It is essential for consultation with subject matter experts and participating stakeholders over concessionary and third-party contractual terms in areas such as port management (SA Inc) and the restoration of the rail freight system.

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This is a delicate moment for SA’s fragile economy. SA’s resilience is being tested, not only by internal challenges but also by external shocks, such as the instability in Mozambique.

This regional interdependence significantly impacts the logistics sector, grappling with supply chain disruptions, violent uprisings, road blockages, and infrastructure destruction.

These challenges lead to significant losses for SA businesses, affecting the economy at large via escalating costs, loss of life, and job cuts across a multitude of sectors formal and informal.

SA is Mozambique’s top provider of goods and services. This highlights the good and bad consequences of our deep regional interconnectedness. It is a lesson in progress for SA Inc in regional integration and managing interdependencies.

The logistics sector plays a pivotal role in SA’s economy, its impact extending across Southern African Development Community region and beyond.

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However, SA has some of the highest logistics costs in the world, adding to inflationary pressures. Optimising logistics is crucial for fostering sustainable growth and ensuring longterm economic stability – the foundation of the future we aim to build.