6/10 fastest growing economies in the world are in Africa

| 0 Comments
Jeremy Cronin.JPGSeismic shifts in the global economy, while posing many challenges should rather be seen to offer fresh prospects to businesses in South Africa who need to look no further than our own continent for expansion, Deputy Minister of Transport Jeremy Cronin told delegates at the recent Transport Forum in Paarl.

“According to a recent World Bank report, six out of the ten fastest growing economies in the world are in Africa. The centres of economic dynamism have shifted from the developed economies of the USA and Europe to emerging countries, especially the BRICSA bloc of which SA is now a proud member,” said Cronin.

He said local emphasis must be toward beneficiation as South Africa needs to change the trend of "exporting our dirt and importing cell phones". This is the result of the influence of finance and services on our economy while manufacturing, a key driver of employment, has been allowed to stagnate.

60% of the European Union’s trade is internal, and in the USA and Canada it is 40%. Sadly, in the SADC countries domestic trade accounts for only 10%, said Cronin

Meanwhile, South Africa’s logistics costs are 15% of our GDP, compared with 8% in the USA, Dr Jan Havenga, Head of The Centre for Supply Chain Management, told delegates.

Havenga attributes this to South Africa’s geography and historical lack of infrastructure spend, which has left the country with only 7 500 kilometres of rail network compared with 750 000 kilometres of road network.

"This has a big impact on our economy. The cost of logistics in SA is high as a result of this modal imbalance and should enjoy the continued attention of our economic development planners."

He added that South Africa’s risks are inordinately high in relation to our dependence on imported fuel and the high impact of road freight on the environment. We are also still an immature economy when measured against the global benchmarks of the economic cycle:

- Extract by farming or mining.
- Move to beneficiate or export.
- Intermediate and/or manufacture.
- Final manufacturing.
- Consumption.

Abrie de Swardt.JPGSouth Africa’s challenge is toward co-modality and all the countries in the SADC region must work together to develop rail-centric networks, added Abrie de Swardt, Marketing Director at IMPERIAL Logistics.

"In South Africa the cost of logistics is far too high, brand SA is not competitive in international terms. At any given moment there are over 1 000 heavy-duty trucks on our roads. The environmental cost of this imbalance will become too high," said de Swardt.

He said that as much road transport as possible must be switched to rail, citing commodities and containers as ideally suited for railage.

"Consumers cast their votes on the shelves and will buy what suit their values. And more and more people are in favour of protecting the environment".

Abrie de Swardt will be presenting at the upcoming SMARTPROCUREMENT WORLD CONFERENCE & EXPO, on 11 to 13 October at Gallagher Convention Centre in Midrand, Gauteng. He will be discussing the innovative solutions and tools employed by logistics providers to contain costs from the perspective of procurement and supply management professionals.

To register e-mail: admin@smartprocurement.co.za

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
An opportunity for a seasoned Procurement Manager, who ...More

Industrial Engineer

  • >500 000 Gauteng Industrial Engineer Permanent Procurement Consultant
An exciting opportunity that offers extensive exposure on ...More

Deputy Director: Procurement

  • >500 000 Contract Procurement Management Procurement Officer / Specialist Western Cape
Department of Economic Development and Tourism:Procurement Specialist, Ref ...More

DEMAND PLANNING MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k – R900K) excluding ...More

GLOBAL SUPPLIER PERFORMANCE MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Salary: R 1.3M –R1.5M, dependent on level of ...More

GLOBAL CATEGORY MANAGER

  • >500 000 Contract Gauteng Procurement Consultant Projects / Category Management
Total Cost to Company R1mil – R1.2mil excluding ...More

Project Manager

  • >500 000 Contract Procurement Management Projects / Category Management Western Cape
 Description:A well-known retail organization is looking for an ...More

PROCUREMENT ANALYST

  • >500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • Commodities Gauteng Permanent Projects / Category Management
 Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • >500 000 Commodities Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R800K – R900K) Johannesburg Our ...More

ENGINEERING STANDARDS MANAGER

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Procurement Management
(Total Cost to Company R350K – R550K) JOHANNESBURGYou ...More

Supply Chain Analyst

  • <500 000 >500 000 Permanent Procurement Officer / Specialist Supply Chain Western Cape
(Total Cost to Company R350K – R550K)  SOUTHERN ...More

Security Manager

  • <500 000 >500 000 Gauteng Permanent Projects / Category Management Strategic Sourcing
(Total Cost to Company R350K – R550K) JOHANNESBURG This ...More

Demand Planner

  • <500 000 >500 000 Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R450k – R550k, dependent ...More

Procurement Specialist-Randburg

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k – R800k including ...More

Solutions Architect

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
(Total Cost to Company R1.3Mil – R1.1Mil including ...More

MANUFACTURING MANAGER - OLIFANTSFONTEIN

  • >500 000 Gauteng Permanent Projects / Category Management
(Total Cost to Company R850k – R950K including ...More