Nokukhanya Mntambo19 March 2024 | 7:54

Logistics sector inefficiencies among biggest threats to growth of black-owned companies: Patel

The Trade and Industry Minister, Ebrahim Patel, on Monday said the logistics crisis, coupled with the dismal performance of the energy sector, put a dampener on productivity, especially at black firms.

Logistics sector inefficiencies among biggest threats to growth of black-owned companies: Patel

Minister of Trade and Industry Ebrahim Patel briefs the media on the Black Industrialists and Exporters Conference on 18 March 2024. Picture: GCIS

JOHANNESBURG - Minister of Trade and Industry Ebrahim Patel says inefficiencies in the country’s logistics sector are among the biggest threats to the growth of black-owned companies.

Patel made the comments on Monday ahead of the second Black Industrialists and Exporters Conference this week.

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Capacity issues at major ports recently led to backlogs in freight, while crumbling rail infrastructure also saw businesses suffer costly delays.

Patel said the logistics crisis, coupled with the dismal performance of the energy sector, put a dampener on productivity, especially at black firms.

“A port system that is not operating optimally will be a negative for black industrialists who want to export to different parts of the world or need raw material for the businesses.”

However, Patel said the crises were at a turning point.

“We have the biggest industrial concentration in Gauteng and therefore, transport logistics is vital to be able to bring in components that are required for our industrialisation and to send products to other provinces and other parts of the world.”