Logistics leaders break down silos in historic industry collaboration
By Adrian Ephraim
SOUTH Africa’s logistics sector is undergoing a fundamental shift as industry players and government agencies work together to address the inefficiencies that have plagued the country’s supply chains for decades.
The Southern African Association of Freight Forwarders (SAAFF) has spearheaded what industry insiders are calling the most comprehensive stakeholder engagement initiative the sector has ever seen.
The collaborative forum brings together a diverse group of logistics stakeholders, including freight forwarders, clearing agents, and critical government agencies such as SARS, ITAC (International Trade Administration Commission), NRCS (National Regulator for Compulsory Specifications), SAHPRA (South African Health Products Regulatory Authority), and the Border Management Authority (BMA).
Addressing the R300 billion problem
Logistics costs in South Africa are among the highest globally, representing about 12% of GDP compared to the international benchmark of 8-10%. This translates to an estimated R300 billion annual burden on the economy, costs that are ultimately passed on to consumers and undermine the country’s competitiveness in global markets.
The initiative comes at a critical juncture for South African trade. Global supply chains remain under pressure from geopolitical tensions, trade disputes, and the lingering effects of pandemic-era disruptions. Meanwhile, the country’s own logistics infrastructure has been hampered by state capture legacy issues, infrastructure degradation, and regulatory fragmentation.
“In over 15 years of working with freight logistics entities, this is the first time we have gathered in a space free from the pressures of transactions,” said Donovan Mitchell, manager at ITAC. “Misunderstandings have been clarified, myths debunked, and a fresh path mapped forward.”
The Relay Race analogy
Modern logistics operations involve between 10 and 40 different role players in a single transaction, with 10 to 17 distinct processes required for any cargo movement. Industry leaders compare this complexity to a relay race where timing and coordination are everything, or an orchestra where each instrument must contribute to the final harmony.
This complexity has historically created friction points throughout the supply chain, with different stakeholders operating in isolation and often at cross-purposes. The SAAFF initiative aims to create a better understanding and alignment between these various players.
“There is something powerful about coming together with shared purpose,” explained Devlyn Naidoo, SAAFF Executive for SARS and Other Government Agencies, who heads the project. “It helps dissolve procedural friction points in the supply chain and is crucial to enabling the recovery of the logistics network after years of disruption.”
A breakthrough engagement
The workshops have generated significant enthusiasm within the logistics community, with participants describing them as a breakthrough in stakeholder engagement. The sessions have moved beyond typical transactional interactions to focus on systemic improvements and policy reform opportunities.
For freight forwarders and clearing agents, who serve as crucial intermediaries in South Africa’s trade flows, the initiative offers an opportunity to directly influence regulatory processes and operational procedures that affect their daily operations. These businesses handle billions of rands worth of imports and exports annually, making their efficiency critical to the broader economy’s performance.
The success of the initial sessions has prompted plans for expanded engagement, with SAAFF positioning the initiative as part of a broader programme to promote cohesion, compliance, and collaboration across the logistics value chain.
“The strength of any association lies in its ability to serve its members through collaboration with key stakeholders and enablers,” said Dr Juanita Maree, SAAFF CEO. “When trade flows efficiently, it drives jobs, economic growth and prosperity. Relationships are our currency – built on trust, consultation, and a shared vision.”
The initiative represents a significant step toward addressing one of South Africa’s most persistent economic challenges. With global trade patterns continuing to evolve and new technologies reshaping logistics operations, the country’s ability to create a more efficient, coordinated approach to freight movement could prove crucial to its economic recovery and long-term competitiveness.
The logistics sector employs over 600 000 people directly and supports millions more jobs throughout the economy. Improvements in sector efficiency could therefore have far-reaching impacts on employment, consumer prices, and South Africa’s attractiveness as a trade and investment destination.
