Gqeberha: Deputy Minister of Transport Mkhuleko Hlengwa has called on the transport and logistics sector to drive real change in society by transforming the industry and uplifting communities through various sectors of the economy.
According to South African Government News Agency, the reports of the Broad-Based Black Economic Empowerment (BBBEE) Commission in 2022 revealed that only 38.8% of transport and logistics businesses were black-owned, marking a decline from 48.6% in 2019. “The transport sector is instrumental in the functioning of our society, yet as with the rest of our economy, it has excluded those from previously disadvantaged backgrounds, women and youth,” Hlengwa stated on Monday in Gqeberha.
Addressing delegates in the cross-border industry during the Micro, Small and Medium Enterprise (MSME) Conference, Hlengwa called for a robust partnership between government and the private sector to bolster the economy and generate decent jobs that would lift the poor and marginalized out of poverty. He emphasized the government’s role in creating a supportive environment through policy interventions to allow businesses to thrive, identifying the logistics and transport sector as a key enabler for sustainable and inclusive economic growth.
Hlengwa noted the MSME Conference as a crucial platform for understanding the industry’s environment and needs to drive real societal change. He highlighted the transformation and development of small businesses as pivotal to the government’s economic development agenda.
In May 2023, the Integrated Transport Sector B-BBEE Charter Council was appointed to lead transformation efforts within the industry. The Council has been actively working to conclude Transport Sector Codes, building upon previous efforts to modernize the sector’s empowerment framework. Hlengwa mentioned ongoing partnerships and reforms aimed at enhancing industry development and improving policy and regulatory frameworks to ease entry for previously disadvantaged individuals, especially women, persons with disabilities, and youth.
The Cross-Border Road Transport Agency has successfully exceeded its target of a 5% increase in the participation of Previously Disadvantaged Individuals (PDIs) by 4.4%. Hlengwa outlined the challenge of sustaining and growing PDI participation over the next five years through an Incubation Programme. This programme aims to create a structured approach to support MSMEs by bringing industry stakeholders together.
The programme targets existing cross-border freight operators, domestic freight operators looking to expand into cross-border operations, existing cross-border passenger operators, and start-ups in the transport industry. The Department of Transport supports the Cross-Border Road Transport Agency in encouraging industry participation in this initiative.