The two women who could save South Africa’s economy
Transport Minister Barbara Creecy and Transnet CEO Michelle Phillips will be critical in changing the direction of South Africa’s economy.
Transnet’s inefficiencies have seriously inhibited growth in South Africa, with manufacturers, miners, and farmers struggling to move their goods.
In 2023, South Africa recorded historically low coal and iron-ore exports due to logistics troubles, specifically rail.
According to the consultancy research group Gain, the issues at Transnet’s Freight Rail (TFR) led to a projected loss of R353 billion in 2023, roughly 4.9% of GDP – in line with the National Logistics Crisis Committee’s estimates.
The picture is not much better when goods reach the coast.
The Cape Town port was also named the worst port in the world in the recent 2023 Container Port Performance Index (CPPI), coming 405 out of 405.
However, Ngqura (404), Durban (398), and Port Elizabeth (391) also ranked incredibly poorly.
Exporting is not the only issue, with importers struggling to access goods across the country.
For instance, Woolworths previously said that its Fashion, Beauty and Home business was impacted by poor availability, primarily caused by the late arrival of certain summer ranges arising from congestion at Transnet’s ports.
Amid these struggles, Creecy and Phillips will be heavily responsible for the performance of the economy.
Minister Barbara Creecy
Creecy’s new role as Transport Minister will be crucial in shaping South Africa’s logistics path.
Prior to joining the government, she worked with the ANC’s underground structures at the University of the Witwatersrand and the United Democratic Front (UDF).
She obtained an Honours Degree in Political Science from Wits and a Master’s in Public Policy and Management from the University of London.
Creecy has been in government roles for three decades and was one of the longest-serving members in the Gauteng Provincial Legislature, where she served as Sports, Education and Finance MEC.
She joined the National Assembly in 2019 and was named Minister of Environment, Forestry and Fisheries.
Creecy was moved from the Department of Environment, Forestries and Fisheries to Transport following the creation of the Government of National Unity (GNU), with the IFP’s Mkhuleko Hlengwa as her deputy.
For her new role, Creecy looks set to copy some of Eskom’s strategies and methods by bringing the private sector on board to help with current and future logistics challenges.
During her budget vote for the 2024/25 year, Creecy said that one of her department’s plans is to create a private sector participation (PSP) unit after seeing the opportunities that emerged from similar initiatives in the electricity sector.
Its primary objective would be to identify suitable areas for private sector participation in rail and ports.
Earlier this year, Finance Minister Enoch Godongwana announced that the private sector would get access to parts of Transnet’s rail lines, while part of the Durban Port has already been privatised.
Michelle Phillips
Phillips’s appointment as Transnet’s permanent CEO has been well-received by markets, with her prior experience and business.
She had worked within the broader Transnet group for over two decades, with leadership positions in port terminals and pipeline operations.
She attended Nelson Mandela University between 1989 and 1994, where she earned a B JURIS LLB degree and majored in company law.
She previously worked for the Special Investigation Unit, where she led a forensic investigation team that uncovered and recovered government losses due to corruption.
She joined Transit in 2001 and had positions that primarily focused on legal aspects at the Transnet National Ports Authority (TNPA).
In 2014, she became the Executive Head of Transnet Port Terminals and, in 2014, became the General Manager of Commercial & National Planning.
In 2020, she was named the CEO of Transnet Piplinenes and was widely praised for her ability to turn the company around. Many hope that this experience will help turn around Transnet.
After becoming interim Group CEO in October, she was named full-time CEO in February of this year.
“Having worked closely with Ms Phillips during the last six months as part of the critical work we are doing on the transport logistics workstream, she has demonstrated her decisiveness and ability to get things done.
“We couldn’t have wished for a better or more experienced candidate to lead Transnet out of its current crisis,” said BLSA CEO Busisiwe Mavuso after Phillip’s appointment.
Read: Government banking on the private sector to save the day in South Africa
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