CAPE TOWN - President Cyril Ramaphosa has highlighted the 2024 Investing in African Mining Indaba as a pivotal event for showcasing the mining sector's role in driving economic growth and job creation in South Africa. This announcement comes amid efforts to bolster the country's economy and employment opportunities through the mining industry.
According to South African Government News Agency, the Mining Indaba, scheduled to take place this week in Cape Town, will demonstrate the vast potential of the mining industry to contribute to economic expansion and employment. He noted that improvements in the logistics system, crucial for mining companies reliant on rail networks and ports, are underway to maximize this potential. In his weekly newsletter on Monday, the President stated that collaborative efforts have already begun to show results in overcoming growth barriers.
The President's remarks follow the recent launch of the first export shipment under the African Continental Free Trade Area (AfCFTA) from the Durban port. AfCFTA aims to establish a single market for goods and services across Africa, deepening the continent's economic integration. This milestone shipment, officiated by President Ramaphosa, marks the beginning of increased South African exports to AfCFTA member countries, which currently account for nearly a quarter of South Africa's global exports. The President anticipates a significant rise in this figure, emphasizing the opportunities for South African companies to export their goods across Africa.
Addressing the challenges faced by South Africa's ports and rail network, President Ramaphosa acknowledged the decline in efficiency and competitiveness due to various factors, including state capture, the COVID-19 pandemic, natural disasters, and increased theft and vandalism. This decline has led to a significant reduction in rail-transported goods, pushing more companies to rely on road transport, causing congestion.
To counter these challenges, the government has established the National Logistics Crisis Committee (NLCC), chaired by the Presidency, and Corridor Recovery Teams, combining efforts from Transnet, the private sector, and independent experts. These initiatives aim to improve the performance of strategic rail and port corridors. Notable improvements include the reduction of waiting ships at the Port of Durban and enhanced capacity at the Port of Cape Town, where new cranes have been deployed, and work shifts increased.
Further, the Freight Logistics Roadmap, a collaborative effort between Transnet, the government, and social partners, outlines actions for stabilizing and reforming the logistics system. This roadmap includes introducing private sector investment and competition in port and rail operations while maintaining state ownership of the infrastructure. A significant reform will be implementing 'open access' to the freight rail network, allowing private operators to invest alongside Transnet Freight Rail. Additionally, strategic partnerships in container terminals are planned to boost port capacity and upgrade equipment.
Progress has been made with Transnet appointing an international container terminal operator for the Durban Pier 2 terminal, where Transnet will retain a majority stake, and no job losses are anticipated. The private partner will be responsible for terminal management, contributing capital and expertise.
President Ramaphosa emphasized that these reforms would create a competitive and efficient system for the future, despite the time required for the transformation.