Collaboration with international partners part of Africa strategy

Logistics company Cargocare is planning to expand its supply chain logistics footprint in the new year through collaboration with some of its international partners – and sub-Saharan Africa is high on the agenda, says operations director Sue Wood. “We are expecting it to become the greatest growth region in the next ten years,” she added. This against an uncertain global economic climate. “Business has been nothing if not erratic,” says Wood. “You get a couple of really good months followed by a quiet month – and, with everything happening in the global economy, it seems that SA is getting the backlash. “The USA, Europe and China are major trading partners not just for each other but also for the rest of the world – and it has been a tough few years for all of them.” Despite this Cargocare is seeing some new business flowing into the region, says Wood. “But we would certainly like to see more export opportunities as I think most agents would.” And while the company is upbeat about the year ahead, Wood accepts that success will depend on global economic outcomes. “There are rumours from Europe of a turnaround, yet we don’t hear too much positive coming from the Far East.” And while in the long term it is clear that Sars’ modernisation will impact positively on the international supply chain, some of the Sars targeted businesses will migrate to direct accounts with them which will have a negative impact on agents’ turnovers, she added. “But the actual model of the engagement or timeline is not yet fully published. Once that happens we will be able to engage in some serious scenario planning.” The new BBBEE codes are a further source of concern for companies aspiring to become BEE certified, she added. “The new codes are being driven hard by the dti and would seem to be much more challenging than anything experienced before.” CAPTION Sue Wood … ‘SA getting global economic backlash.’