Infrastructure development drives logistics growth

Simba Logistics is looking to
Zambia and Mozambique for
increased growth, says Simba
Logistics MD, Ron Frick.
“Zambia has a predicted gross
domestic product (GDP) growth
rate of 4% per annum over the
next two years on the back of a
growing mining industry,” said
Frick.
And opportunities out of
Mozambique were driven by
the planned infrastructural
development surrounding the oil
and gas fields in the northern part
of the country, he added.
According to Frick there is also
a financial incentive to source
cargo from southern Africa as
commodities
and services
are generally
sold on an
SA randbased
currency
versus the
US dollar
or the
euro-based
currencies.
“The concept of ordering
on a just-in-time (JIT) basis
has also pushed cross-border
trade growth, specifically
for transport by road into
neighbouring countries,” he
pointed out, noting that
generally cargo could
be delivered within one
week of loading from
Johannesburg.
“Africa seeks African
solutions and the needs
for skills, product
maintenance and
after-sales
service can
easily be
supported
from southern Africa – and our
neighbours are increasingly
recognising that.”
He said that the developing
neighbouring countries were
creating demands for
finished and semifinished
products, on
which South African
producers should
focus.
INSERT & CAPTION
The concept of ordering
on a just-in-time basis has
also pushed cross-border
trade growth.
– Ron Frick