The two women who could save South Africa’s economy
Source: Business Tech
Transport Minister Barbara Creecy and Transnet CEO Michelle Phillips will be critical in changing the direction of South Africa’s economy.
Transnet’s inefficiencies have seriously inhibited growth in South Africa, with manufacturers, miners, and farmers struggling to move their goods.
In 2023, South Africa recorded historically low coal and iron-ore exports due to logistics troubles, specifically rail.
According to the consultancy research group Gain, the issues at Transnet’s Freight Rail (TFR) led to a projected loss of R353 billion in 2023, roughly 4.9% of GDP – in line with the National Logistics Crisis Committee’s estimates.
The picture is not much better when goods reach the coast.
The Cape Town port was also named the worst port in the world in the recent 2023 Container Port Performance Index (CPPI), coming 405 out of 405.
However, Ngqura (404), Durban (398), and Port Elizabeth (391) also ranked incredibly poorly.
Exporting is not the only issue, with importers struggling to access goods across the country.
For instance, Woolworths previously said that its Fashion, Beauty and Home business was impacted by poor availability, primarily caused by the late arrival of certain summer ranges arising from congestion at Transnet’s ports.
Amid these struggles, Creecy and Phillips will be heavily responsible for the performance of the economy.
Read here the full article published by Business Tech on 22 July 2024.
Image by Business Tech
Transport Minister Barbara Creecy and Transnet CEO Michelle Phillips will be critical in changing the direction of South Africa’s economy.
Transnet’s inefficiencies have seriously inhibited growth in South Africa, with manufacturers, miners, and farmers struggling to move their goods.
In 2023, South Africa recorded historically low coal and iron-ore exports due to logistics troubles, specifically rail.
According to the consultancy research group Gain, the issues at Transnet’s Freight Rail (TFR) led to a projected loss of R353 billion in 2023, roughly 4.9% of GDP – in line with the National Logistics Crisis Committee’s estimates.
The picture is not much better when goods reach the coast.
The Cape Town port was also named the worst port in the world in the recent 2023 Container Port Performance Index (CPPI), coming 405 out of 405.
However, Ngqura (404), Durban (398), and Port Elizabeth (391) also ranked incredibly poorly.
Exporting is not the only issue, with importers struggling to access goods across the country.
For instance, Woolworths previously said that its Fashion, Beauty and Home business was impacted by poor availability, primarily caused by the late arrival of certain summer ranges arising from congestion at Transnet’s ports.
Amid these struggles, Creecy and Phillips will be heavily responsible for the performance of the economy.
Read here the full article published by Business Tech on 22 July 2024.
Image by Business Tech