‘Expanding African market will keep SA economy buoyant’

The next decade will see unprecedented growth for the South African economy, especially when it comes to expansion into the African market, says a very positive Moses Maboi, managing director of Katlego Global Logistics. While there will be a further slowdown globally due to the volatility in the markets, he does not believe this will or should have a major negative effect locally. “We are receiving more and more enquiries and contracts for both imports and exports, especially into the African market. We have had to employ eight new people in the past month and have a contract pending which will require more than 120 new people in January. We must not give in to negativity which is not based on fact. We are doing well as a company and we have more than 30 clients who are also doing very well. In fact, they cannot cope with the demand. “This is because foreign companies prefer to deal via South Africa. South Africa is being used as a feeder into Africa and this will further stimulate growth for us. We are world-class and competitive and we have good trading partners in countries such as India and China. There are also a number of ongoing projects such as the 2010 World Cup which will create a momentum for at least five to six years,” Maboi notes. He does however caution that local companies need to be careful in terms of choosing the projects to which they commit themselves. “You need to focus and cost-cutting is key along with ensuring that you have secure payment terms with both local and international companies. It is also a good idea to diversify so that you do not have all your eggs in one basket, don’t focus just on logistics or just on shipping. That way when one market closes down then you open another,” he says. Political stability is however a prerequisite as far as Maboi is concerned. “Economic growth can be affected by politics but South Africans are mature enough to handle change as we saw with the hand-over of power by Mbeki. Next year we must follow the example of the Americans and go and vote for change. The youngsters must not sit back and accept everything that is happening. They must go out and see who they believe in and vote for them. “Crime is unacceptably high and it needs to be addressed more effectively. It is costing business a lot for security and the like which can rather be used to grow the economy. The logistics industry is very high risk and the money we are currently spending on armed escorts for our vehicles we would rather spend on employing more people. It is costing us the same per month as it would to employ five new staff members. This does not benefit economic growth and has to change,” Maboi concludes.