South Africa’s logistics sector is facing a pivotal moment, where innovation and investment are crucial to overcoming existing challenges. As the industry grapples with inefficiencies and infrastructure constraints, stakeholders are calling for a transformative shift to modernise operations and boost competitiveness. The need for advanced technology and strategic investment has never been more urgent.In response to these demands, industry leaders are stepping up with groundbreaking solutions and collaborative efforts. From state-of-the-art tracking systems to revamped supply chain strategies, the push towards a more efficient and resilient logistics network is gaining momentum. According to Professor Jan Havenga, a director at the GAIN Group and a logistics lecturer at the University of Stellenbosch, the current embedded logistics costs for any commodity in South Africa average more than 50%. Improving efficiency in logistics will enhance competitiveness and reduce costs across the country.Natalie Chippendale, commercial director at Teraka Logistics, said a good deal of logistics costs could be attributed to inefficiencies in the value chain. “Addressing these challenges requires substantial investment in upgrading critical infrastructure, such as roads and ports. Moreover, adopting more efficient technologies and methods can play a crucial role in reducing costs. Streamlining regulations and improving policy frameworks will also be essential to enhance the sector's competitiveness and drive down overall costs,” she told Freight News.Ilunga Mukendi, a logistics consultant at Mikhanyi Logistics, agreed, saying embracing new technologies and focusing on infrastructure development were key to unlocking the sector’s full potential and boosting global competitiveness. He added that if South Africa and other African countries could unite to recognise and leverage their mutual strengths and export opportunities, it would further highlight the benefits of collaboration, ultimately leading to more stable pricing across the continent.“There are many opportunities in the logistics sector, both in South Africa and the continent. Many international companies have already identified these opportunities,” he said. “There is much potential on the continent considering the kind of demographics.” According to Havenga, South Africa could see economic growth as high as 6% if it improved its logistics network and introduced more efficient operations.The outlook for the logistics sector remains cautiously optimistic. The experts maintain that while challenges persist, the sector is set for growth, driven by technological advancements and improvements in infrastructure. Increased regional trade and a strong commitment to sustainability are expected to contribute positively. Companies such as Teraka say they are already seeing impressive growth, more than doubling cargo volume in its first five years.Gavin Naidoo, bunker business manager at Linsen Nambi, asserts that change is achievable through a systematic approach. "We must drive productivity and address poor performance with decisive action," he said, calling on state-owned enterprises to reduce rates and create frameworks that enhance logistics efficiency. He emphasises the need for these entities to lead in promoting South Africa as a sustainable hub for global shipping, trade and bunker fuel operations.
