Government to support Transnet reform but only after key objectives are met

South Africa to tackle logistics crisis with broad reform plans

South Africa is grappling with a logistics crisis that is costing the economy billions of rand each year.

The government is responding with a broad reform plan that includes addressing the financial and operational challenges plaguing state-owned enterprises (SOEs) like Eskom, Transnet, Denel, and the Land Bank.

What was done to tackle these issues?

To tackle the logistics crisis, the National Logistics Crisis Committee has been established.

Its mission is to instigate reforms in the logistics sector, prioritizing actions to address both the immediate crisis and the structural hindrances impeding progress.

Transnet’s recent performance

Transnet, a vital player in transporting goods and commodities to local and international markets, has seen its recent performance suffer due to worsening financial challenges.

The government is working with Transnet to ensure that it can meet its immediate debt obligations.

Government financial support for the transformation of the logistics sector

Government financial support for the transformation of the logistics sector will only be considered once Transnet’s corporate and operational plans align with three crucial objectives: enhancing operational efficiencies, introducing healthy competition, and tapping into the financial and technical support of the private sector.


The government’s coordinated effort to revitalize South Africa’s logistics system seeks to ensure that it can thrive and support the growth of new industries in the years to come.

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