SA’s regional dominance under threat

South Africa’s neighbouring
states are gradually losing
their dependence on the
country and in the process
are proving to be strong
competitors that should not
be underestimated, said Ed
Richardson, FTW’s Africa
correspondent.
Speaking at last week’s
Transport Forum at the
Port of Ngqura in the
Eastern Cape, Richardson
said with the reliance on
South Africa weakening,
a vibrant economy was
developing in the region
with many of the countries
not only thinking bigger but
creating opportunity and
competition.
“We need to look at what
the Chinese and the Indians
are doing on our doorsteps
and grab the opportunities
being presented. Our
neighbouring states are
waking up and are losing
their dependency on South
Africa.
He said the Port of Walvis
Bay was just one example
of southern Africa’s
commitment to sharpening
its logistics edge. “Many
people wrote this port
off, but they were wrong.
The port has seen major
investments and it
is working well along
with the corridors. The
roads are well maintained
due to the ring-fencing of
funds, while they have also
been innovative in the way
they create capacity and
generate funds.”
He said the creation of
a dry port for Zambia and
Botswana by the Port of
Walvis Bay had proved to be
a good strategic move while
the port had also ventured
into shipping repairs which
had been very well received.
“Angola as well stands
as a lesson of what
happens when logistics
starts working. The port in
Luanda, which was plagued
by congestion, is no longer
a major problem because
of concessioning while
they have embraced public
private partnerships to
rebuild their infrastructure.”
Richardson said during
recent visits to Mozambique
it was clear that the country
was investing time, effort
and money into nearly
all of its ports while
Botswana was offering huge
incentives for investors,
proudly boasting the lowest
corporate tax in Africa.
“Zambia is investing
heavily in its infrastructure
in an effort to establish itself
as a hub for central Africa.
They have shifted their
focus from Durban though,
as they have realised the
benefit of Dar Es Salaam
in Tanzania. About 65%
of their throughput is now
through this port.”
He said while they
still considered the
Port of Durban competitive
they had for the most
part become fed up
with Customs and delays
and decided to find a
solution elsewhere.
“These are clear
indications that our ports
face competition from
our neighbours, but it also
means there is opportunity
for us in southern Africa,”
he said.