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Opinion – Taking stock

Opinion – Taking stock

Now is the perfect moment to assess the lessons we have learned, evaluate performance, and focus on how South Africa and our Government of National Unity (GNU) 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 of the national institutions to deliver improved operational performance as the nation continues to work towards stabilising the economy. 

The Presidency has renewed its mandate to the National Logistics Crisis Committee (NLCC) for 2025. This in itself illustrates 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. The extended period in mission for the NLCC also serves in recognition of the tangible, good outcomes this collaborative consultative model is delivering to the nation. 

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 South African management, leadership, South African 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 ingredients in the transformation, away from an inefficient monopolised service platform that is holding back 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 South Africa’s Pier 2 KZN main port, and the opening to third-party rail operators of the opportunity to bid under the terms of the Transnet Network Statement, signed to Gazette by Minister Barbara Creecy at the closing of the 2024 calendar year.

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

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

State capture, followed by looting of public funds under the COVID-19 pandemic blanket alongside the systemic abuse of well-intended programmes such as Preferential Procurement, remain not just matters of concern today, but 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 South Africa’s public and private sector experts. It is essential that all concessionary and third-party contractual terms are thoroughly consulted with subject matter experts and active, participating stakeholders, particularly in areas such as port management (SA Inc.) and the restoration of the rail freight system.

This is a delicate moment for our fragile economy. Our resilience is being tested, not only by internal challenges but also by external shocks such as the instability in Mozambique following recent post-election unrest. This regional interdependence significantly impacts the logistics sector, grappling with supply chain disruptions, violent uprisings, road blockages and the destruction of infrastructure. These challenges lead to significant losses for South African businesses, affecting the economy at large through escalating costs, loss of life, and job cuts across a multitude of sectors, formal and informal.

As a nation, we are experiencing casualties in the form of business failures, job losses and diminished confidence in the region. South Africa is Mozambique’s top provider of goods and services. This highlights the good and bad consequences of our deep regional interconnectedness. The Chandler Foundation is quoted to define resilience as the capacity to positively adapt to challenges arising from both internal and external factors – this is indeed a lesson in progress for SA Inc.  on regional integration and managing interdependencies.

While the honeymoon period for the Government of National Unity may be over, we must acknowledge the meaningful progress made at the foundational level. The collaborative spirit in play is driving these improvements, which are crucial to an economic recovery and the future of our nation. Policy Reform becomes a solution only by virtue of the integrity and accuracy of its implementation, and by how it is effectively applied to deliver the desired outcomes.

The logistics sector plays a pivotal role in South Africa’s economy, its impact extending across the broader SADC region and beyond. However, South Africa faces some of the highest logistics costs in the world, adding to inflationary pressures, and placing strain on livelihoods. Optimising logistics is crucial for fostering sustainable growth, and ensuring long-term economic stability – the foundation of the future we aim to build. 

*Juanita Maree is the CEO of the Southern Africa Association of Freight Forwarders.