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Logistics inefficiencies cost SA nearly R1bn a day, says Ramaphosa

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By Thapelo Molefe

President Cyril Ramaphosa has called for urgent reforms to South Africa’s transport and logistics system, warning that inefficiencies are costing the economy nearly R1 billion a day and undermining growth.

Speaking at the inaugural National Transport Conference at Gallagher Estate on Monday, Ramaphosa said modernising the country’s transport infrastructure was essential to restoring competitiveness and unlocking economic opportunity.

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“Transport is vital to our economy and our people,” Ramaphosa said. 

“When our transport arteries are blocked or inefficient, growth stalls, costs rise and opportunity diminishes. When they flow freely, the country thrives.”

The president said the government had placed logistics reform at the centre of its economic recovery strategy through the Medium Term Development Plan, citing a major imbalance in the freight system where around 69% of freight is transported by road rather than rail.

“This

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