Transformation needed within logistics and transport

Transformation is much needed by our society and economy, writes SANDILE KHOZA. And he says transport and logistics can be a leading light in this regard.

Transformation is not about compliance; it is fundamentally all about changing people’s lives. As a country, we have come a long way by developing legislation to redress inequalities within our society.

However, considering information in the Empowerment Report, produced by Intellidex in partnership with Empowerdex and Independent Media, I believe that the country is not doing well when it comes to transformation.

While some organisations have improved in terms of B-BBEE scoring, the question is: are we ticking the boxes to ensure we comply? Or we are taking deliberate and calculated initiatives to ensure that we are transforming as a country?

According to the National Infrastructure Plan 2050 (NIP 2050), the South African government has included freight, logistics and transport as a network that is of national importance.

The Government Gazette 44951, 10 August 2021 states: “Logistics and transport should facilitate domestic and cross-border movements of goods to enable industrialisation, trade and development.” This is clear evidence that the logistics and transport industry will remain a key economic enabler for decades to come. Active participation in transformation by the transport and logistics industry is thus of great importance for the country. How is the industry performing in this regard?

Key points for logistics and transport from the Intellidex Report

So, what can we learn from this report and what should we be doing?

Skills development: Are we focusing on key skills that are needed by industry? What role is the private sector playing in ensuring that the skill sets produced will address industry issues? The success of proper deployment of skills within organisations should translate to skilling individuals and preparing them to take meaningful and strategic positions within the industry.

Management control: Boards and excos are issuing statements around the issue of transformation, but the actual appointments are somehow not in line with transformation objectives. There is a glaring gap when it comes to succession planning: we seem not to have a feeder pipeline for people to progress from junior to senior management and then onto executive positions and beyond.

Enterprise and supplier development: This is one pillar that can assist the industry to move forward in line with transformation objectives. The investment should be measured (input vs output). It is one thing to inject money for an Exempt Micro Enterprise (EME) to procure trucks, but it’s another scenario when the EME and Qualifying Small Enterprise (QSE) are given a chance and the environment to be successful.

Black ownership: We are sitting on 85% on a derivative of 25% as a percentage. Ownership is on a lower quadrant but is not achieved.

Where to from here?

Transformation does require targets and most importantly, an impact needs to be made. This is all about the sustainability of our economy. Hence there is a need for a genuine desire by the transport and logistics industry to transform. After all, transformation is a national imperative.

If we look at sport, for example, transformation is good for all. In 1995, when Nelson Mandela lifted the trophy of the Rugby World Cup, it was a historic and symbolic moment for the whole of South Africa. In 2007, President Thabo Mbeki accompanied the winning team to the final and, when he lifted the trophy, there was great joy among South Africans, regardless of race, gender or ethnic group. Since then, people have started to view sport – rugby, specifically, as for everybody.

The logistics and transport sector can also be a champion in South Africa when it comes to transformation!