Working with governments to address infrastructure challenges

Transport and infrastructure
are probably Africa’s biggest
challenges, says Dave Rennie,
executive director of Grindrod Limited
and CEO of Grindrod Freight Services.
“That is the reason why we
have positioned ourselves in the
infrastructure and development space
with the specific intent to help
improve and create infrastructure
along the trade corridors
throughout Africa.”
With several projects under way,
Rennie says it is important that
the private sector participates with
governments to overcome challenges
and rejuvenate transport and
harmonise logistics systems across
the region.
“In order to maximise trade
and market potential in Africa,
we need to work towards creating
seamless trade. For instance 24-hour
integrated customs at border posts
and standardised regulations are two
aspects that are very important.”
Rennie says issues such as
prohibitive legislation and regulations,
skills shortages and constraints due
to legacy issues in certain countries
as well as language barriers are all
challenges when doing business on
the continent. “These challenges can
all be overcome by developing trust,
enhancing communication channels
with the authorities, understanding and
being sensitive to all the local issues,
having a presence on the ground and
by working with the local businesses
and governments.”
He says because Africa is rich in
commodities, much interest is being
shown by the developed world as well
as by developing countries such as
China, India and the Gulf States.
“They all want to see an increase
in trade and it is an opportunity
for companies like Grindrod to be
involved in Africa.”
Rennie says while volumes were
affected by the recession and the fall
in demand for commodities, trade is
expected to resume its growth in line
with commodity demand.