INDUSTRY NEWS
South Africa is committed to significant public infrastructure development in the coming years, which will reshape the country’ s transport and logistics sector. This investment is expected to drive economic growth, improve trade efficiency, and expand businesses, ultimately creating a more resilient and competitive market
According to Gregory Saffy, managing director for Sub- Saharan Africa Operations at FedEx, the company’ s commitment to improving infrastructure is crucial. He states,“ This commitment will be a pivotal step toward enhancing the efficiency of goods and services moving across the country.”
Saffy anticipates that this investment will result in“ more reliable and expedited transit times,” enabling FedEx to“ continue offering superior services to customers.” He adds that upgrades to“ roads, railways, ports, and airports will facilitate smoother domestic and international trade, aligning with our mission to provide efficient and dependable logistics solutions.”
FAST-TRACKING
THE FUTURE
HOW NEW INFRASTRUCTURE INVESTMENT WILL SUPERCHARGE SOUTH AFRICA’ S LOGISTICS
CLOSING INFRASTRUCTURE GAPS TO UNLOCK ECONOMIC POTENTIAL South Africa, despite boasting some of Africa’ s top transport infrastructure, grapples with persistent challenges like insufficient maintenance and underinvestment. These problems lead to port congestion, erratic rail services, and decaying roads, collectively impeding trade efficiency and discouraging investment.
Saffy emphasizes that“ Infrastructure deficiencies ultimately stifle economic development.” Therefore, resolving these issues is crucial for lowering business costs, enhancing service reliability, and solidifying South Africa’ s standing as a vital trade hub both within Africa and globally.
REDUCING BUSINESS COSTS AND SUPPORTING SMALL AND MEDIUM ENTERPRISES( SMES) Inadequate infrastructure significantly drives up business operational costs through delays, higher fuel usage, and increased maintenance. Conversely, robust transport networks reduce logistics expenses, benefiting businesses of all sizes, especially SMEs aiming for market expansion. As Saffy elaborates,“ Enhanced infrastructure provides SMEs with reliable and cost-effective access to markets, suppliers, and customers. Improved transport and logistics networks enable timely deliveries and open opportunities for expansion.”
To bridge these gaps, FedEx has introduced innovations like https:// www. fedex. com / en-za / shipping / services / international-connect-plus. html This service offers cost-effective and speedy delivery solutions, enabling South African e-tailers to better meet customer demands.
EXPANDING MARKET ACCESS AND FACILITATING TRADE Saffy highlights the ongoing global uncertainty in trade, but emphasizes that infrastructure improvements are crucial for increasing market access. He points out that both physical and digital infrastructure are key. Digital infrastructure investments will specifically enhance customs operations and streamline supply chains. He concludes that these investments are vital for South Africa’ s competitiveness in global trade.
At FedEx, advanced data and technology are central to customer service. Saffy states that AI is no longer just a tool, but a primary driver for enterprise growth, profitability, and efficiency. He explains that FedEx’ s mission is to make supply chains smarter for everyone by connecting them with their data platforms.
www. abrbuzz. co. za 17 JULY 2025