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 the reports of the Broad-Based Black Economic Empowerment (BBBEE) Commission, in 2022, only 38.8% of transport and logistics businesses were black-owned, which was a decrease from the 48.6% recorded 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 said on Monday in Gqeberha.
Addressing delegates in the cross-border industry during the Micro, Small and Medium Enterprise (MSME) Conference, he called for a solid partnership between government and the private sector to grow the economy and create the necessary decent jobs that would uplift the poor and marginalised from poverty.
“As government, we have a responsibility to create a fertile ground through policy interventions, with the aim to allow businesses, in general, to flourish. This administration has identified the logistics and transport sector as one of the key enablers for achieving sustainable and inclusive economic growth in our country.
“We are committed to a reform process that seeks to revitalise the sector, while also contributing to the social imperative of the transformation of our society,” the Deputy Minister said.
He said the MSME Conference serves as a platform that sets the country on a course to understand the environment and the needs of the industry better in order to enable and drive real change in society and uplift communities.
“In this context, the transformation and development of small businesses becomes a key component and contributor to government’s economic development agenda.
“In May 2023, the Integrated Transport Sector B-BBEE Charter Council was appointed to spearhead the transformation within the industry. Since then, the Council has worked tirelessly to conclude Transport Sector Codes, building on past efforts to modernise the sector’s empowerment framework.
“Partnerships towards such progress continue to evolve alongside the different reforms being instituted to enable industry development as well improving the policy and the regulatory framework for easier entry by previously disadvantaged people especially women, persons with disabilities, and youth in the designated persons category,” Hlengwa said.
The Cross-Border Road Transport Agency has been successful in reaching and exceeding the target of a 5% increase in the participation of the Previously Disadvantaged Individuals (PDIs) by 4.4%.
“The challenge going forward is to sustain and grow the participation of PDIs in the next 5 years, and this will be done through the Incubation Programme. The aim is to create a structured Incubation Programme that will bring the industry stakeholders together to have a coordinated approach in supporting the MSMEs.
“The Department of Transport rallies behind the Cross-Border Road Transport Agency (C-BRTA) as it encourages the industry to support this programme,” he said.
The programme targets the following categories:
- 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. - SAnews.gov.za
