{"id":803268,"date":"2024-12-06T14:00:00","date_gmt":"2024-12-06T12:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=803268"},"modified":"2024-12-06T14:02:08","modified_gmt":"2024-12-06T12:02:08","slug":"south-africas-potential-is-still-being-held-back","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/803268\/south-africas-potential-is-still-being-held-back\/","title":{"rendered":"South Africa’s potential is still being held back"},"content":{"rendered":"\n

South Africa has increased its trade position over the past year, but inefficiencies at state-owned logistics company Transnet continue to hold back the country’s trade performance.<\/p>\n\n\n\n

This was outlined by Investec’s Chief Economist, Annabel Bishop, who explained that South Africa has recorded a substantial trade balance of over R116 billion from January through October.<\/p>\n\n\n\n

This is a significant improvement compared to last year to October\u2019s cumulative R30.2 billion, which “comes as commodities prices have risen versus last year, with a stronger rand and a stronger term of trade.”<\/p>\n\n\n\n

One of the most critical entities for trade in South Africa is state-owned Transnet; the custodian of ports, rail and pipelines.<\/p>\n\n\n\n

Its objective is\u00a0to ensure a globally competitive freight system that enables sustained growth and diversification of the country’s economy.<\/p>\n\n\n\n

However, it has faced a significant deterioration over the years.<\/p>\n\n\n

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“Some improvements on Transnet\u2019s port congestion and rail freight capacity played a modest role as payload volumes increased slightly, but capacity constraints at Transnet overall remain dire,” said Bishop.<\/p>\n\n\n\n

She said that deep-rooted structural problems at the SOE, which will take a long time, “will inhibit trade more so than tariffs from the Trump administration.”<\/p>\n\n\n\n

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Reality check over Trump’s threat to South Africa<\/a><\/blockquote>