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.