South Africa’s transport and logistics sector is the most developed in the Sub-Saharan Africa, this is according to an article published by PWC. According to Klaus-Dieter Ruske (PwC Transportation & Logistics Global Leader), as Africa increases in investment opportunities so is the importance for transportation and logistics. Africa’s future growth and development is dependent on the quality of infrastructure and the efficiency of the transport networks.
Kenya is a good example how government invests heavily in the construction sector to improve infrastructures such as road networks and at the same time provide new residencies for the locals (who are being supported by the banks to get loans to buy apartments/cars). In the last five years the demand for real estate and construction sectors have been the key drivers of economic growth in Kenya.
There is no doubt that the global transportation and logistics industry will play a vital role to develop the African market.
“The continent needs better transport infrastructure, more connectivity across borders, and an improved business environment to reach its potential.” says Andrew Shaw, PwC Transport & Logistics Leader for South Africa.
What does this mean for business?
Understanding the evolution of the trade corridor development and developing a strong understanding of the consumer markets and current infrastructure is extremely important when considering access to consumer populations and the challenges associated with logistical networks. Fleet management systems can help businesses that are reliant on the transportation of goods and services, remove or minimise the risks associated with vehicle investment. Globaltrack’s online tracking application can improve efficiency, productivity and reduce the overall fleet operation costs. Our sole aim is to make transportation cheaper in Africa, saving money for transporters, thus avoid passing on necessary costs to the African consumer.