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.
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.
ALSO READ:
- More needs to be done to make mainstream economy more accessible – Patel
- Urgent structural reforms needed in logistics sector, says Ramaphosa
- Stats SA GPD data: Impact of energy, logistics challenges expected to take centre stage
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.”