Entry into the industry for new logistics operators in the freight forwarding and customs clearance sector is not easy, according to BBP Solutions director, Joyce Letswalo. She told FTW that since founding the company in 2014, finding funding had been extremely difficult, despite the wealth of experience she has working in the industry in both the public and private sectors for over 16 years. Before starting her own business, Letswalo was the lead trade negotiator for agriculture since 2002 and holds two masters’ degrees in business administration, international law and economics as well as an honours degree in agricultural economics. “I’ve found that government departments and initiatives where you would think a small and emerging business would be able to get support from either, can’t help us or don’t get back to us at all,” said Letswalo. “This is because our sector of the industry is not included in government’s scope of priorities.” She noted that the recently formed Department of Small Business Development had no incentives available for the logistics sector as they were currently focused on the manufacturing sector, and the Department of Trade and Industry were looking at supporting commercial and big business. This has resulted in Letswalo financing the business on her own. However, she said that despite these challenges the business was growing, through word of mouth and references from previous clients, and that she anticipated a lot of demand growth for her services. “Within the next five years we want to be a player within the medium-sized category of the industry,” she added. “We are looking to compete within our category and gain recognition for our services and expand the business.” According to Letswalo, BBP Solutions did not only handle freight forwarding and clearing but also offered valueadded services such as international trade advice. “This means we are able to tell them where to source the same product at a lower cost as well as which country has more trade preferences with South Africa,” she said. “If a client is looking to invest in Nigeria, we can brief them on all the aspects that would need to be considered and once we’ve successfully helped them it's likely they will choose to come back to us as their forwarding and clearing agent.” Letswalo noted that the company was currently looking to attract small and mediumsized businesses as clients, such as general manufacturing companies who import finished products or equipment in the medical field, which is in high demand from both public and private hospitals.
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Within the next five years we want to be a player within the medium-sized category of the industry. – Joyce Letswalo
