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Attracting private sector investment to ports and rail to ease logistics will not be an easy task
Durban is SA’s busiest port and has been struggling with congestion for years. Its inefficient handling of cargo and long waiting times before vessels can berth comes at a significant cost to both freight companies and businesses.
Government has recognised that addressing the issues facing Transnet is a priority if it is to end the logistics crisis facing the country. A committee advising the president has recommended dismantling Transnet’s monopoly on both rail and ports and getting the private sector involved through leases and concessions. Given Transnet's levels of debt (R130bn) this will not be an easy task.
Internationally, the African Growth and Opportunity Act (Agoa) is a US trade preference agreement for Africa — including SA — which allows duty and quote-free exports from eligible African countries into the US. It is expected to continue to be used as an effective governance tool by the US to ensure beneficiaries adhere to Agoa eligibility requirements for duty-free trade with the US.
This includes protecting internationally recognised workers’ rights and not engaging in activities that undermine US foreign policy or national security interests.