Strategically located in close proximity to Asian and South American markets, South Africa’s economy benefits from an advanced transport network and highly developed logistics sector. The South African government has recently embarked on a programme to restore macroeconomic stability to the country after a period characterised by rising public debt, inflationary pressures and muted GDP growth. As a major exporter of minerals and importer of oil, commodity prices remain important for South Africa and shifts in demand and pricing can have far reaching economic effects. To this end, the country is grappling with economic instability related to a decline in global demand for South African exports, local production and foreign capital inflows resulting from the developing coronavirus pandemic.
South Africa’s infrastructure network is the most developed on the continent, comprising over 36,000 kilometres (km) of rail track, 747,000 km of roadway, three international airports and eight commercial seaports. Electricity generation capacity in the country is high and growing, supported by the country’s rich coal resources and the development of renewable energy sources. The country’s warehousing and logistics segment is similarly competi- tive with a network of warehousing and storage facilities serving the country’s large export market. However, in recent years the country’s logistics performance has experienced a decline due to issues related to high port tariffs, customs efficiency, infrastructure quality and frequently delayed shipments.