Government is once again asking the private sector to partner with it to create efficient and cost-effective linkages to markets and suppliers, together with other infrastructure.
In his June 20 State of the Nation Address president Cyril Ramaphosa said “our new approach to infrastructure development is based on stronger partnerships between the public and private sectors, and with local communities”.
Logistics is not, however, on the top of the wish list.
“It includes a special package of financial and institutional measures to boost construction and prioritise water infrastructure, roads and student accommodation through a more efficient use of budgeted money,” he said.
According to Ramaphosa private investors such as pension funds have indicated that they are “enthusiastic” about participating in a proposed infrastructure fund – which was first announced in the State of the Nation Address at the beginning of the year.
As with previous dispensations the current ANC government does not seem to grasp that states are developed around logistics and supply chains.
The government still wants to engineer manufacturing in rural areas which are often far removed from markets and inputs.
“Through spatial interventions like special economic zones, reviving local industrial parks, business centres, digital hubs and township and village enterprises, we will bring economic development to local areas,” said Ramaphosa.
What will be welcomed by logistics companies and business in general is renewed commitment to increasing bandwidth – it should be faster and cheaper to convey information after new spectrum is opened up. Ramaphosa promised that the process would start within a month.
