Transport Sector in South Africa: Calls for Transformation and Upliftment of Communities

Strategic Insights -

Deputy Minister of Transport Mkhuleko Hlengwa has emphasized the importance of transforming the transport and logistics sector in South Africa to drive real change in society. According to the Broad-Based Black Economic Empowerment (BBBEE) Commission, the sector has struggled to include previously disadvantaged backgrounds, women, and youth, with only 38.8% of transport and logistics businesses being black-owned in 2022, a decrease from 48.6% in 2019. The Deputy Minister has called for a solid partnership between government and the private sector to grow the economy and create decent jobs that uplift the poor and marginalized.

Key Takeaways:

  • The transport sector is crucial for societal functioning, but has historically excluded previously disadvantaged backgrounds, women, and youth.
  • Only 38.8% of transport and logistics businesses were black-owned in 2022, a decrease from 48.6% in 2019 (BBBEE Commission).
  • Deputy Minister Mkhuleko Hlengwa has called for a solid partnership between government and the private sector to drive economic growth and create decent jobs.
  • The Integrated Transport Sector B-BBEE Charter Council was established in May 2023 to spearhead the transformation within the industry.
  • The Cross-Border Road Transport Agency has successfully increased participation of Previously Disadvantaged Individuals (PDIs) by 4.4%.
  • The Department of Transport is rallying behind the Incubation Programme to support MSMEs in the transport industry.

Statistics:

  • 38.8% of transport and logistics businesses were black-owned in 2022 (BBBEE Commission).
  • 48.6% of transport and logistics businesses were black-owned in 2019 (BBBEE Commission).
  • The Cross-Border Road Transport Agency exceeded its target of a 5% increase in participation of PDIs, reaching a 4.4% increase.

Sources:

  • SAnews.gov.za