Why the Next Supply Chain Superpower Could Be African…And Should It Not Be South Africa?

By Dr Ernst van Biljon, Head Lecturer and Programme Coordinator MCom in Supply Chain Management, IMM Graduate School
A Shifting Global Landscape
The global supply chain landscape is now in a state of profound transformation. No longer simply a quest for the cheapest labour, the world is actively reconfiguring its logistical arteries around functional strengths and trusted partnerships.
In this interconnected yet fractious global economy, the concept of a nation solidifying its position as a dominant logistics hub transcends mere efficiency in trade and tariffs. For South Africa, embracing this ambition is not simply about optimising supply chains; it is a fundamental pillar for its long-term strategic positioning, sustained growth and enduring viability within the burgeoning African continent and the influential BRICS+ bloc.
The world’s economic gravitational pull is shifting, and with Africa potentially a future frontier of growth, South Africa’s ability to serve as a reliable, high-performing gateway will dictate its future influence and prosperity.
Africa’s Emerging Role in Global Trade
Nations have already strategically carved out their niches: Vietnam for low-cost manufacturing, South Korea for advanced innovation, India for tech and skilled talent, and Singapore and the UAE for logistics excellence. An intriguing question emerges: what is Africa’s potential superpower in this new global order, and where does South Africa fit in?
The answer lies in Africa’s role as a critical node in a rebalanced global trade ecosystem. While the continent does not have the capacity to compete on sheer manufacturing scale or ultra-cheap labour, its strategic location and advancing logistics capabilities present a clear opportunity.
A logistics race is undeniably underway across Africa. East African ports like Mombasa and the island of Lamu, alongside Egypt’s Suez Canal and the strategically located Djibouti, are witnessing significant investment in infrastructure, free trade zones and digital customs systems. Kenya is actively positioning itself as a vital corridor into Central Africa, Ethiopia has invested heavily in dry ports, and Egypt is leveraging the Suez Canal Economic Zone as a global transhipment and manufacturing hub. In North Africa, Morocco’s Tangier Med port offers efficient access to European and North American markets.
South Africa’s Comparative Edge
Amid this continental dynamism, South Africa too possesses a unique and powerful comparative edge: its strategic location and inherent logistics capability. With access to both the Atlantic and Indian Oceans, proximity to the vast Southern African Development Community (SADC) markets, and significant potential as a gateway for intra-African and BRICS trade flows, South Africa’s inherent advantages are undeniable.
However, this is an opportunity that South Africa risks squandering if it fails to act with greater decisiveness. Post-COVID supply chains prioritise resilience, trust and stability over purely low-cost options.
The Post-Pandemic Shift in Priorities
The COVID-19 pandemic served as a stark and painful lesson in the fragility of global supply chains. For decades prior, the prevailing mantra was ‘just-in-time’ and ‘lowest cost’, leading to highly optimised but often geographically dispersed and single-sourced supply networks.
In essence, the pandemic shifted the strategic calculus from ‘how cheap can we get it?’ to ‘how sure are we that we can get it?’ This new paradigm creates a significant opportunity for regions and nations that can demonstrate their capacity for resilience, trustworthiness and stability in their logistics capabilities.
South Africa has the potential to become that trusted and stable trade node, but this requires a tangible demonstration of reliability and performance.
Strategic Priorities for South Africa
To secure this critical opportunity, several fundamental changes are urgent and imperative. First and foremost, significant and sustained investment in infrastructure, particularly in ports, rail and roads, is non-negotiable. The efficiency of these foundational elements directly impacts the speed and cost of goods movement.
Secondly, comprehensive reform and performance improvement within Transnet are vital. Its current operational challenges hinder the nation’s logistical competitiveness.
Thirdly, a rapid acceleration of logistics digitisation, embracing technologies such as AI, IoT and live tracking, is crucial for enhanced transparency, efficiency and predictability.
Fourthly, the strategic growth of Special Economic Zones (SEZs) linked to key trade corridors will attract investment and streamline trade operations.
Finally, fostering a more conducive regulatory environment and strengthening public-private collaboration are essential to unlock the full potential of the logistics sector.
The Window of Opportunity
The African Continental Free Trade Area (AfCFTA) and the expanding BRICS+ alliance create unprecedented new trade momentum. South Africa is ideally positioned to be the key trade bridge linking African production with global demand, and vice versa. But success hinges not merely on policy positioning, but on demonstrable logistical performance.
The message is urgent and clear: the next five years will unequivocally determine South Africa’s logistics legacy and its pivotal role in shaping the next global supply chain superpower.
In the current context of potential trade wars, companies are now actively seeking out trade partners and logistical hubs that offer a stable operating environment, reliable infrastructure and consistent regulatory frameworks. They are willing to pay a premium for the assurance that goods will move smoothly and predictably, even if it means foregoing the absolute lowest production cost.
The opportunity cost of delay is substantial; if South Africa sleepwalks through the next five years, other nations will undoubtedly fill the void.

Dr Ernst van Biljon is the Head Lecturer and Programme Coordinator for the Master of Commerce in Supply Chain Management at the IMM Graduate School. He is a leading authority on supply chain strategy, global trade dynamics and logistics innovation, with extensive experience across academia and industry. His work focuses on equipping professionals with the skills and insight to design resilient, future-ready supply chains capable of navigating disruption and driving sustainable growth.