SA needs to diversify its supply chain networks

A convoy of trucks carrying essential goods just outside Harrismith. File photo: SEBABATSO MOSAMO

The reality is that the protests, followed by prolonged unrest and looting sprees, have destroyed and disrupted vital transport, logistical, warehousing and distribution facilities in the two provinces. The SA economy was already reeling from the impact of the Covid-19 related lockdown, with the general supply of goods and services already suffering. This crisis can only exacerbate these challenges.

While some calm has been restored in the two provinces, the damage is already done, and the long-term consequences will be felt for years. From more job losses, to the closure of businesses, a reduction in fiscal income due to lower tax contributions, large scale disinvestment and slowing foreign direct investment flows. This has a ripple effect on the state’s ability to foster economic recovery, pay social grants and build key economic infrastructure .

Additionally, technological integration of our supply chain networks and distribution could help the industry continue to serve the market even when disruptions occur. Alternative logistics technologies such as drones could be used right now to distribute supplies even to risky areas. A deliberate reinvestment into our manufacturing sector will also be key to ensuring that we not only get out of this difficult situation but prevent shortages when disruptions occur in future.

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