Banks in South Africa still perceive female entrepreneurs as a bigger risk than their male counterparts, making access to funding one of the biggest barriers to establishing a freight and logistics business.
“Providing a freight and logistics service in South Africa requires a lot of capital but, despite the many strides businesswomen have made in their contribution to the global economy, banks are still leery of lending large sums to women,” said Nontokoza Gxumisa, managing director of MCV Forwarding International, speaking during a panel discussion at the South African Association of Freight Forwarders (Saaff) congress in Durban on Thursday.
Sue Moodley, managing director and founder of Transport.com, agreed that when she established her company just over a decade ago she had to put down a “huge deposit” when she applied for funding for her vehicles.
“The transport industry is seen as volatile and therefore deemed a high risk,” she commented. According to her, she overcame this barrier by learning to save and by maintaining a strong debtor’s book.
“It is also vital to ensure one has back-up and contingency plans in place to manage any eventuality,” said Moodley.
Juanita Maree, financial director at Savino del Bene, pointed out that currently only 4% of businesses listed on the Johannesburg Stock Exchange were owned by women – well below the global average.
