Inadequate focus on export logistics has been identified as a significant barrier to export growth. Currently, southern Africa’s logistics infrastructure is heavily geared towards imports and there is not enough focus on streamlining the entire supply chain to ensure exported goods get to the market quickly, in the view of Andre Snyders, sector research analyst at Standard Bank, who pointed out that logistics for exports was often more complex as it involved a number of additional steps. “With increased global and regional competition in the marketplace, speed to market is essential. But the infrastructural and logistical challenges – delays at border posts, frequent stops by transport authorities, badly damaged roads, amongst others – can seriously hamper that,” he said. Furthermore, manufacturers – especially the small, medium and micro enterprise (SMME) sector – do not always understand logistics supply chain complexities. “A lack of information when designing market strategies is a major constraint,” Snyders pointed out. Chris Beyers, co-CEO of The South African Capital Equipment Export Council (SACEEC), agreed, noting his organisation was currently re-examining regional value chains in the sectors it served and benchmarking them against global standards. “For example, we’ve identified a need to reclaim and develop new market share for Gauteng-based original equipment manufacturers (OEMs) into the Africa market, predominantly the Southern African Development Community (SADC) countries, and realise we need to have a stronger presence closer to our export target markets,” he said. According to Beyers, this strategy will kick off with a marketing, sales and after-sales service and repair hub for South African companies within the Zambian Copperbelt. “Good infrastructure also encourages investment from overseas, with international companies carefully assessing whether an inefficient infrastructure will damage their bottom line,” he commented. With increased global and regional competition in the marketplace, speed to market is essential. – Andre Snyders
