Country Report: South Africa
South Africa is a country of many different flavours. Arguably one of the most beautiful countries in
the world, it is home to some 50 million people. With 11 official languages, ever-changing
landscapes, many different cultures, a handful of ethnicities, and hundreds of religions, it’s virtually
impossible to stereo-type.
South Africa has developed a highly competitive, world-class customs clearing and freight forwarding
infrastructure, operating in both the domestic and international arena and catering for all sizes and
categories of goods. South Africa’s many harbours and airports are state of the art, their
accompanying road and rail links however, sufficient, but require some attention if the country wants
to maintain its competitive edge. (as the gateway to Africa?)
The South African Association of Freight Forwarders (SAAFF) has five regional member associations
catering for the local needs of members in the Western Cape, Eastern Cape, Gauteng, KwaZulu-Natal,
and Beit Bridge (the border between the South African Customs Union and the rest of Africa). These
associations have approximately 300 members, responsible for about 80% of all clearances.
South Africa is divided into nine provinces and has 2,798 kilometres (1,739 mi) of coastline. To the
north lie the neighbouring countries of Namibia, Botswana and Zimbabwe; to the east Mozambique
and Swaziland; and in its centre Lesotho completely surrounded by South African territory. South
Africa is the 25th largest country in the world by area and the 24th most populous.
Economy
South Africa is considered an upper-middle income economy by the World Bank. It has the largest
economy in Africa, and the 28th-largest in the world. By purchasing power parity, South Africa has
the 5th highest per capita income in Africa. It is considered a newly industrialised country. However,
about a quarter of the population is unemployed and disparities amongst the population are vast (SA
is ranked amongst the top 10 countries in the world for income inequality). South Africa’s GDP
ranked 29th in the world in 2010 at US$364 billion.
South Africa’s main trading partners include Germany, Japan, the United States, China, the United
Kingdom and Spain. South Africa’s chief exports include corn, diamonds, fruits, gold, metals and
minerals, sugar, and wool. Machinery and transportation equipment make up more than one-third of
the value of the country’s imports. Other imports include chemicals, manufactured goods, and
petroleum.
Situated in Johannesburg the JSE Limited (previously the JSE Securities Exchange and the
Johannesburg Stock Exchange) is the largest stock exchange in Africa and the 19th largest stock
exchange worldwide. Its average monthly traded value is about US$6.4 billion and the market
capitalisation of the JSE is in the region of US$600 billion.
The value of South Africa’s currency (the South African Rand (ZAR)) is determined by its supply,
controlled by the South African Reserve Bank, and its demand. The currency was recently revamped
to improve its security and now portrays the face of former president Nelson Mandela on all five
notes of different dominations. On the reverse side the notorious Big 5 – the African elephant, lion,
Cape buffalo, cheetah and black rhinoceros.
Infrastructural developments
The freight forwarding industry has received generous investment in recent years in terms of
infrastructural development, due in part to South Africa’s role as host nation for the 2010 FIFA World
Cup and also in attempts to boost trade and create jobs. Almost all the countries main airports
received extensive upgrades, increasing capacity and lengthened runways. South Africa’s hub airport
OR Tambo in Johannesburg handles almost 600 aircraft movements a day and is fitted with a runway
over 4400m (14,000ft) long, making it one of the world's longest international airport runways,
necessary since fully laden aircraft require a far greater length of runway to achieve take-off velocity
at this altitude. South African Airways, a Star Alliance member, operates its hub in Johannesburg,
providing direct flights to Australia, Asia, Europe, North and South America.
Durban’s harbour, one of the busiest ports in Africa has also seen investment with the widening of its
entrance. Ships of 300m in length and with 37m beams are regular callers. The largest vessel afloat,
the 564,650-dwt ULCC tanker Jahre Viking, which has a length of 458m and a beam of 69m
underwent repairs and a survey while at anchor at the Outer Anchorage off Durban.
In addition Durban received a completely new airport in time for the 2010 FIFA World Cup. The new
airport is situated along important transport routes and a neighbouring industrial development zone
is in the process of being developed.
A new port was recently completed outside of Port Elizabeth to feed in and out of the new Coega
Industrial Development Zone. This deep-water port has been designed for Dry Bulk Carriers and
Cellular Container Vessels.
South Africa now has 8 ports serving local and international demands for all kinds of goods, vessels
and services.
What remains to be seen is investment in the ailing railway infrastructure which has led to a massive
exodus of freight cargo to the roads. This shift of mode has resulted in an increased burden on the
road network, placing it under heavy strain.
In this light, a state of the art 80-kilometre (50 mi) mass rapid transit railway system in Gauteng
Province which links Johannesburg, Pretoria, and OR Tambo International Airport was built to relieve
the traffic congestion in the Johannesburg–Pretoria traffic corridor which road users had become so
used to. It was also an attempt to provide commuters with a viable alternative to road transport, as
Johannesburg has limited public transport infrastructure.
To further reduce the volume of traffic on this overloaded highway system tolling will soon be
introduced despite a public outcry. The idea is similar to congestion charges in other capitals around
the world; however this system will charge users according to the distance of road covered rather
than charging a fixed amount for entering a certain zone. It is an attempt to gather the funding
needed to maintain the highway infrastructure and it is an attempt to get commuters off the roads
and onto public transit.
Logistics performance
The recent logistics performance index measuring the ease of moving goods across borders has
ranked South Africa 29th out of 155 countries, putting South Africa relatively in par with high scorers
such as the US, Europe, Australia and China.
South Africa is a warm and friendly place with plenty of sun to go around. Opportunities for
expansion into the rest of Africa abound and the right investments, more often than not, offer good
returns. What the freight forwarding industry here would very much like to see is a return to moving
containerised freight via rail, which will once again return South Africa’s transport network to its
maximum efficiency.
The South African Association of Freight Forwarders
Tel: 011 455 1726 | Fax: 011 455 1709 | Email: saaff@saaff.org.za
Physical Address: 2nd Floor, SAFCEC House, 12 Skeen Boulevard, Bedfordview, 2008
Postal Address: PO Box 2510, Bedfordview, 2008