Transnet to expand foothold to eight African countries
Africa’s leading freight logistics chain Transnet has been on an expansion binge and is expected to set up shop in eight more African countries including Kenya, Liberia, Ghana, Nigeria, DR Congo, Senegal, Togo and Benin.
According to the logistics performance index of the world bank, only six of the 46 african countries ranked are in the top two categories, 18 are ranked as “partial performers”, and 22 are ranked “logistics unfriendly.”
Public enterprises minister lynne brown said, “these include possible joint ventures in areas such as rail and port opportunities, the development of infrastructure at ports and establishing transport corridors in those countries,” as the continent has 15 landlocked countries requiring access to ports.
She added that transnet was not only committed to developing infrastructure but that their presence must also change the socio-economic conditions of those living close to these projects. she also pointed out that the freight company should also procure and develop local small, medium and micro enterprises within the respective african countries.
Transnet made this decision based on its need to diversify revenue sources in response to the economic slowdown in the country and worldwide. brown said other state entities must also adopt this approach, as well as the private sector.
“If we can address africa’s logistics infrastructure deficit, we can change the quality of lives of all africans,” brown said. “and we look to africa as a key, under-developed market.”
Rown highlighted that in 2015, intra-african trade accounted for less than 18% of total continental exports. “among the key factors, underpinning these numbers is africa’s logistics infrastructure deficit,” she said.