South Africa has been navigating complex economic terrain throughout 2024 which has had an impact on the road transport sector, according to Neo Ralefeta, treasury structuring consultant at Investec."This year has been nothing short of tumultuous," Ralefeta told members of the Road Freight Association (RFA) at the organisation’s annual conference, while reflecting on the unprecedented disruptions wrought by the pandemic and subsequent geopolitical tensions. "The conf lict in Ukraine, escalating turmoil in Gaza, and a global economic slowdown have all contributed to an environment of uncertainty."Amidst these global upheavals, Ralefeta underscored the importance of re-evaluating supply chain dynamics. "Countries are reassessing their reliance on China and exploring alternative partnerships to safeguard against geopolitical risks," he explained. "The concept of the Global South is gaining traction, presenting new avenues for growth and collaboration." He said locally the energy supply shortages remained at the top of the list of concerns for businesses, followed closely by the economic downturn, unemployment, state fragility and water scarcity."Addressing these challenges requires a multifaceted approach," said Ralefeta. "From bolstering energy infrastructure to fostering economic resilience and enhancing governance, there are pivotal steps that must be taken to stabilise and stimulate growth.”He said currency remained important in South Africa – and for the road freight sector at large – considering the volume of goods imported.“Despite the numerous challenges we face, I am still convinced that South Africa has potential. Given the right leadership and the amount of grit we have as a nation, we can turn this country around. South Africa has everything it takes to be globally competitive and win on a global stage. We must, however, be agile in recalibrating our risk management frameworks. Whether through decentralised power structures or strategic investments in critical infrastructure, proactive measures will be pivotal in shaping our economic trajec tor y.”Ralefeta said it was time for collective action and resilience in the face of uncertainty. "By leveraging our strengths and embracing innovation, South Africa can emerge stronger and better. The path forward demands bold leadership, strategic partnerships, and a steadfast commitment to economic prosperity."
