Logistics powers growth as African trade routes expand

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TINUS DE JAGER: Freight forwarding and logistics are a core linkage in the South African economy. If goods do not move, neither does the economy.

In this time of changing market conditions, new African trade routes and cost pressures affecting efficient transport logistics, these factors are all the more important for addressing enterprises’ competitiveness.

A little earlier, I had a chat with Marius van Reenen, chief operating officer at Absa Vehicle Management Solutions, and asked him how key seasonal commodities are currently performing and how broader economic changes are affecting the sector.

Good afternoon, Marius, welcome to the programme. How do you see the role of transport and logistics playing out in South Africa’s economic growth, as well as in its competitiveness and even current inflation dynamics in 2026?

MARIUS VAN REENEN: I am excited at the start of 2026 and the strong macroeconomic data coming out, together with a very positive recent tax budget.

Obviously, we have been told economic growth is on the horizon, and transport and logistics lie somewhat at the heart of the economy.

We are, of course, passionate about helping our clients recognise and stimulate those opportunities, thereby assisting them in creating a healthy, stable society and economy.

TINUS DE JAGER: We often hear that if transport is working, the economy works. How critical is this sector in enabling growth across industries such as agriculture, manufacturing, tourism and retail?

MARIUS VAN REENEN: I believe the transport and logistics sector is like the arteries connecting the heart of the economy with the consumer.

For that reason, an effective and productive transport and logistics sector is critical, because it ensures that sectors can meet consumer needs, manage and reduce costs, and stimulate demand by continuously meeting supply.

Here, once again, it is so important to have close cooperation between market players and knowledgeable specialists, which is successfully applied to ensure we can meet the needs out there.

TINUS DE JAGER: Financial matters are also important. How important is it for the banking sector to support this logistics industry with funding, such as transactional banking services and asset financing, rather than just financing individual products?

MARIUS VAN REENEN: Tinus, yes. I think no business or sector exists in isolation.

A holistic view of a client’s fixed and working capital requirements, insight into their operational reality and interactions with their clients, along with individual working capital strategies, is decisive for financial institutions, particularly in adding value to this sector.

It is extremely important to have that close relationship one typically seeks in a business bank context to ensure that all the different demands are met, so a transport client can focus on what they do really well.

That is to ensure that things are picked up in good time, transported with care, managed cost-effectively, and delivered on time at the other end, ensuring that needs can be met.

TINUS DE JAGER: Tonight, we are talking with three big companies. How important is this logistics industry in searching for larger opportunities in regional trade in Africa from a bank, and perhaps, let’s say, a risk perspective? What needs to be in place to support South African companies responsibly when they look beyond the borders?

MARIUS VAN REENEN: Tinus, any financial institution needs risk management and sustainability, key factors that clients must continually focus upon to operate successfully. That is, of course, hyperfocus when seeking opportunities in Africa – and there are incredible opportunities there.

Planning, provisioning and policing are, in my view, the three incredibly important Ps in supporting responsible cross-border trade.

And of course Absa is a group that very successfully trades across Africa today, and we thus have a wealth of knowledge and skills we can apply, in consultation with our clients, to ensure they are successful in pursuing these opportunities.

TINUS DE JAGER: Thank you so much. That was Marius van Reenen, COO of Absa Vehicle Management Solutions.

Brought to you by Absa Business Banking.

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