SA must learn to compete on the global stage

There are few who will disagree that business volumes into Africa have slowed down significantly over the past year, with the main business into the region coming from Aid agencies. “And this originates mainly in Europe rather than South Africa,” says The Cargo Connection MD Gerd von Mansberg. “The only possible exception is Zimbabwe where Air Zim flights are oversubscribed,” Von Mansberg told FTW. The outlook for the year ahead is largely dependent on available forex in the countries of destination, he adds. “This is export-financed and as we know the commodity prices worldwide are not exactly buoyant.” And while many regard Africa as a continent of growth, Von Mansberg is more circumspect. “The emerging markets are faring a little better than mainstream economies because their growth is from a lower base,” says Von Mansberg. “But they cannot grow in isolation, and the slowdown in demand for commodities in the developed world hampers exports from Africa.” And the types of commodities sourced from South Africa don’t necessarily favour the airfreight option. Traditional exports include basic commodities which are generally seafreighted. High tech products are mainly sourced from the East and are often flown directly while pharmaceuticals, largely from India, are also brought into Africa directly. In his view, the priority for South Africa is to provide a competitive alternative into the continent for goods sourced elsewhere. “It is cheaper for African countries in many cases to source from India, China, Thailand and Taiwan, for example. We need to get onto their preferred shopping lists.” On the positive side, South Africa is doing well with the supply of spares for the mining industry, motor spares and other day-to-day consumables. “Johannesburg remains the main SADC airfreight hub and many shipments are routed via Johannesburg. “For African airlines serving Johannesburg, the name of the game is to have special rate agreements (Spas) in place to earn their share of the cargo market.”