SA’s regional dominance under threat

South Africa’s neighbouring states are gradually losing their dependence on the country and in the process are proving to be strong competitors that should not be underestimated, said Ed Richardson, FTW’s Africa correspondent. Speaking at last week’s Transport Forum at the Port of Ngqura in the Eastern Cape, Richardson said with the reliance on South Africa weakening, a vibrant economy was developing in the region with many of the countries not only thinking bigger but creating opportunity and competition. “We need to look at what the Chinese and the Indians are doing on our doorsteps and grab the opportunities being presented. Our neighbouring states are waking up and are losing their dependency on South Africa. He said the Port of Walvis Bay was just one example of southern Africa’s commitment to sharpening its logistics edge. “Many people wrote this port off, but they were wrong. The port has seen major investments and it is working well along with the corridors. The roads are well maintained due to the ring-fencing of funds, while they have also been innovative in the way they create capacity and generate funds.” He said the creation of a dry port for Zambia and Botswana by the Port of Walvis Bay had proved to be a good strategic move while the port had also ventured into shipping repairs which had been very well received. “Angola as well stands as a lesson of what happens when logistics starts working. The port in Luanda, which was plagued by congestion, is no longer a major problem because of concessioning while they have embraced public private partnerships to rebuild their infrastructure.” Richardson said during recent visits to Mozambique it was clear that the country was investing time, effort and money into nearly all of its ports while Botswana was offering huge incentives for investors, proudly boasting the lowest corporate tax in Africa. “Zambia is investing heavily in its infrastructure in an effort to establish itself as a hub for central Africa. They have shifted their focus from Durban though, as they have realised the benefit of Dar Es Salaam in Tanzania. About 65% of their throughput is now through this port.” He said while they still considered the Port of Durban competitive they had for the most part become fed up with Customs and delays and decided to find a solution elsewhere. “These are clear indications that our ports face competition from our neighbours, but it also means there is opportunity for us in southern Africa,” he said.