Smart Logistics
During this part of the virtual mission you will learn more about the developments and opportunities regarding Smart logistics. The focus is mainly on opportunities in South Africa in the field of technology, logistics management and operations and capacity development
You will also get an good insight of projects in which parties want to cooperate internationally. Through online matchmaking you come into contact with local companies and institutions that are active in this sector and with which you can capitalize on existing opportunities in the future.
For whom?
The mission is only open to companies and knowledge institutions that are active in the field of Smart logistics.
(Smart) Logistics in South Africa
South Africa has the most developed transport and logistics sector in Sub-Saharan Africa, which puts it on par with some of the industrialized countries. The country is also considered the top performing country in Africa when it comes to trade-enhancing logistics, ranks among the best in transportation infrastructure, and serves the second largest economy in Africa. The South African logistics sector has just had its strongest growth quarter ever (Q4 2020). It makes up about 20% of SA's GDP and is estimated at about $ 26 billion.
The local logistics market is driven by intracontinental trade growth, changes in consumption patterns and e-commerce growth. Major market players in South Africa include a number of multinationals such as DHL, Imperial Logistics, DSV, DB Schenker and ID Logistics
The main market opportunities for technology are the introduction and adoption of technology (drones, blockchain, AI, robotics), the proliferation of technology and technology for dealing with limited resources.
As far as SMEs are concerned, there are opportunities for companies active in the transport sector. In South Africa, SMEs generated 21% of that industry's revenue (Q1-2019) and have continued to grow.
Challenges and Opportunities
South Africa's logistics landscape is the most advanced on the continent. Unfortunately, the infrastructure is deteriorating, much maintenance is overdue and there are relatively high logistics costs. This situation therefore offers opportunities for improvement and optimization. However, currently many organizations in South Africa do not have the skills to effectively use digital technologies and, for example, design optimization. This means that there are significant opportunities for digital skills development and knowledge transfer. Especially when it comes to the benefits that these technologies can offer in the logistics sector. These can be pilot projects, collaboration in infrastructure development projects and innovation with the aim of operational efficiency improvements.
Sector-specific initiatives are underway to achieve efficiency, such as the Flying Swans initiative in the fruit sector and initiatives for port renewal. There are also opportunities to learn from these collaborations and to expand them to other sectors. Solutions are needed across the board to reduce overall logistics costs and increase competitiveness. South African interviewees have indicated across the board that they are interested and willing to collaborate with Dutch partners in the sector.
Opportunities for Dutch companies and knowledge institutions therefore lie in three areas:
1. Technology adoption and consultancy
2. Management of logistics and logistics operation
3. Capacity development (infrastructure and skills)
