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Creating a disruption-proof supply chain in Africa

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The impact of the pandemic on global supply chains has prompted governments around the world to look at ways to fix the broken links. In Africa, the launch of African Continental Free Trade Area (AfCFTA), has provided the continent with new opportunities to strengthen its regional supply chain.

Virusha Subban, Head of Indirect Tax at Baker McKenzie in South Africa, explains that there were massive breakages in key links in global supply chains during and after the pandemic, with issues including, among many other things, route congestion and blockages, manufacturing shutdowns, a deficit of skilled labour, a global shortage of key logistics components including shipping containers, a lack of space in warehouses, a spike in transportation costs and substantially increased demand for goods around the world, post-lockdown. As a result, countries have been looking at ways to relink broken chains.

In February 2021, President Biden addressed this issue by signing an Executive Order on America’s supply chains. He ordered federal agencies to review and identify vulnerabilities in key US supply chains and develop policies to ensure those supply chains would be more resilient to future shocks.

Similarly, the  European Union Policy Department for External Relations issued a report on Post Covid-19 value chains: options for reshoring production back to Europe in a globalised economy. The report noted that, against the background of both supply shortages due to the pandemic, and the shift in global trading patterns, reshoring of production, the process of bringing production activities home, had become a topical issue in recent EU policy debates.

Last year, the African Union African Peer Review Mechanism 2020 published a report on Africa’s governance response to COVID-19,  which highlighted Africa’s supply chain challenges and overreliance on foreign trade and suggested that the continent boost its manufacturing capacity to build a strong African supply chain that could not be weakened by global blockages.

Marc Yudaken, Partner and Head of the IMT Sector Group at Baker McKenzie in Johannesburg, notes that supply chains in Africa were already under pressure before the pandemic, due to inadequate infrastructure, corruption and security issues, poor trade logistics, overreliance on foreign imports, onerous regulatory requirements and complex customs procedures.

He explains that a recent Baker McKenzie report – A License to be Bold: Transforming Industrials outlined areas of post-pandemic focus for supply chains in the IMT sector, which included being able to adapt to new markets, embrace digitalisation and enable the disruption-proofing of supply chains. The report noted that disruption arising from COVID-19 accelerated trends already apparent in the industrials market, particularly digitalisation and trade volatility, and transformation has now gone from a “nice to have” to a necessity.

Yudaken notes that due to the global supply chain disruption, many African countries have begun looking at ways to improve their manufacturing capacity so that they can produce local components that don’t need to be imported and that can be traded within the continent.

“Reliable transport and utilities infrastructure is vital in terms of ability of the IMT sector to scale up production for regional export and to develop its manufacturing bases. To improve transport infrastructure in Africa, large projects have been announced or are in progress, including, for example, the Trans-Maghreb Highway in North Africa and the North-South Multimodal Corridor, connecting extensive parts of Southern Africa, as well as the Central Corridor project and the Abidjan-Lagos Corridor Highway project.

 Further, Africa needs an adequate supply of water and electricity to increase production capacity and incentivise foreign companies to set up facilities on the continent – energy and utilities infrastructure is direly needed across African jurisdictions. Domestic policy changes that address these issues are therefore playing a crucial role in disruption-proofing Africa’s supply chains at present.”

Subban agrees that improving manufacturing capacity is a key way to remove reliance on global supply chains. A Baker McKenzie report, with Oxford Economics,  AfCFTA’s US$ 3 trillion Opportunity (AfCFTA report) looked at African imports from outside the continent and revealed that manufactured products  industrial machinery and transport equipment constituted over 50% of Africa’s combined needs. Currently, Africa’s external imports account for more than half of the total volume of imports, with the most important suppliers being Europe (35%), China (16%) and the rest of Asia including India (14%). By contrast, imports from other parts of Africa account for only 16% of total merchandise imports. Manufacturing GDP represents on average only 10% of GDP in Africa. This means that limited production capabilities within Africa are currently being compensated for through foreign imports. This manufacturing deficit could be eventually satisfied within the continent and enabled by AfCFTA.

“Further, in terms of rapid global digitisation, a sophisticated legal and regulatory framework that enables digital transactions is vital for full participation in global digital trade, which is expected to play a leading role in a post-pandemic trade environment.

“The trade in services, for example, is an especially pertinent area of focus for all countries in Africa and could represent a way to overcome the current production and supply chain limitations that threaten to hold up the Africa-wide trade in goods. Because a service can either be traded directly or serve as an input into the production process of a product, the liberalization of trade in services is not as hindered by current infrastructural or logistic deficits as the trade in goods. In this way, Africa’s service trade sector can benefit from bypassing the industrialization phase,” she says.

The AfCFTA report shows that the trade in services in general currently accounts for over half of gross value added in Africa. In order to fully realise its benefits, however, there needs to be a better understanding among policymakers of the important role that services can play in regional value chains. This will allow the continent to address the structural constraints on growth in these sectors. The report notes that easing restrictions on foreign government policy throughout the continent will increase the flow of service trade between countries. For example, allowing more access to the information and telecommunications systems would encourage companies to enter new markets. Further, lowering the cost of access and usage of communication and fortifying network security will encourage businesses to set up or ramp up operations in the continent

“Addressing infrastructure shortfalls, boosting manufacturing capacity, and leveraging the benefits of digitisation will add strong links to Africa’s regional supply chain, ensuring it can withstand breakages and disruption,” adds Subban.

Logistics

Is Your Logistics Business the One AI Recommends? A Cape Town Agency’s Numbers Say It’s Starting to Matter

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Close up of a woman searching for a logistics partner with AI search.

A year ago, AI assistants sent this business no visitors. Now they do. For transport, logistics and supply chain companies, the way buyers shortlist carriers and freight partners is changing too.

IMS‘s work with Big Talk Entertainment shows how AI search is starting to influence how South African businesses are found. The lessons apply across the sector, from freight operators, couriers and clearing agents to warehousing, cold chain and supply chain software firms.

Between February and July 2026, Big Talk Entertainment recorded 28 website sessions from AI assistants such as ChatGPT, Gemini and Perplexity. Over the same period in 2025, Google Analytics 4 recorded none. The Cape Town entertainment agency worked with Johannesburg-based digital agency IMS to make its website easier for search engines and generative AI tools to find, understand and cite.

The numbers are still small, and IMS is candid about that. “The direction is what matters,” says IMS’s Chief Disruptor, Francois Vorster. “A way of finding customers that did not exist a year ago now does.”

Over the same six months, new visitors from Google search rose 67%, and people typing the website’s address directly into their browser, often a sign that someone remembers a brand, rose 87%.

Why This Matters for Logistics

Big Talk is not a logistics business, but its corporate buyers behave like yours. They research several suppliers before they make contact, and in logistics a poor choice means late deliveries and damaged stock. More of that research now starts with a question put to an AI tool, such as “Which freight forwarders handle cross-border shipments to Zambia?” or “Who offers warehousing near the Durban port?”

“Choosing a logistics, transport or supply chain partner is a high-stakes decision, so buyers research thoroughly before they request a quote, and more of that research now starts in an AI tool and not a Google search,” says Vorster. “We can’t say for certain how much of the improvement came from traditional search work and how much from the AI-focused work. What we can say is that AI tools have become a measurable new source of visitors for a business that had none a year ago.”

What IMS Did

IMS combined traditional search work with making the business easier for AI tools to find and recommend: improving the website’s technical foundations, rewriting pages to answer the questions customers ask, and keeping the business’s details consistent everywhere AI tools look.

For a logistics business, that means clearly explained services, current coverage areas and routes, fleet and capabilities, licences and certifications, and answers to common shipper questions.

“A few years ago, nobody asked ChatGPT to recommend a band for their wedding. Now many people do,” says Deon Schlebusch, Managing Director of Big Talk Entertainment. “We are not walking away from the channels that have always worked for us, but we’d be foolish to ignore a new one that’s starting to send us business leads.”

A Word of Caution

The results come from Big Talk’s own analytics, comparing 1 February to 31 July 2026 with the same period in 2025. Because traditional and AI-focused work ran together, the growth cannot be credited to the AI work alone, and any link between AI recommendations and direct visits cannot be proven from the data. “We would rather show what we can actually measure than overclaim,” says Vorster.

Logistics businesses should also make sure claims about coverage, transit times, licences and safety records are accurate and verifiable, because buyers rely on what AI tools tell them.

What is GEO?

Generative Engine Optimisation, or GEO, is the practice of making a business easier for AI tools to find and recommend. Where SEO is about ranking on Google, GEO is about being the answer an AI tool gives.

The full case study is available at https://imsolutions.co.za/news/big-talk-entertainment/

Portrait of Francois Vorster – IMS Chief Disruptor.

Francois Vorster, IMS Chief Disruptor

Selfie of Deon Schlebusch, Managing Director of Big Talk Entertainment.

Deon Schlebusch, Managing Director of Big Talk Entertainment

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Press Releases

South Africa’s Green Hydrogen Push Could Build a New Industrial Supply Chain

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The African continent filled with the South African flag with a backdrop of solar panels and wind turbines.

South Africa’s green hydrogen ambitions are becoming less about producing another energy source and more about building an industrial base around it.

Speaking at the Africa Green Hydrogen Summit in Cape Town, Trade, Industry and Competition Minister Parks Tau said government views green hydrogen as part of a broader industrialisation agenda, alongside sustainable aviation fuel, green chemicals, green shipping fuels, advanced manufacturing and new export industries.

For South Africa’s supply-chain industry, that distinction matters.

The opportunity is not simply to produce hydrogen and send it overseas. It is to develop the infrastructure, manufacturing capacity and supporting industries needed to produce, move and use it.

Building an Industry Around Hydrogen

Green hydrogen does not exist in isolation. Producing it at scale requires renewable energy, specialised equipment, infrastructure and facilities capable of handling the resulting products.

That creates potential demand across a much wider industrial network.

South Africa will need companies that can supply equipment and components, develop and maintain production facilities, provide storage and transportation solutions, and support the conversion of hydrogen into products such as green ammonia and sustainable fuels.

The more of that value chain that can be developed locally, the greater the potential economic impact.

This is central to the government’s stated industrialisation approach. The Department of Trade, Industry and Competition’s green hydrogen strategy positions hydrogen alongside other industries that could help South Africa move further up the value chain and export more value rather than raw resources.

Investment is Beginning to Move

There are already signs that the infrastructure behind the sector is starting to take shape.

Through the Just Energy Transition Investment Plan programme management office at the Industrial Development Corporation, government has identified 24 strategic integrated projects, several of which have already reached the pre-feasibility stage. The projects are backed by €40 million from Germany’s KfW Development Bank.

In August, Climate Fund Managers closed the first R3 billion of the South Africa Green Hydrogen Fund. A further R628 million in grants has also been made available through the European Union’s Global Gateway programme.

Of that funding, R490 million is intended to leverage investment in hydrogen infrastructure, with government projecting that it could mobilise a further R10 billion. Another R138 million is intended to help Transnet green its own operations.

These investments matter because an industrial supply chain cannot develop around projects that remain disconnected from the infrastructure needed to support them.

Six Projects Move the Sector Closer to Implementation

The scale of the opportunity is becoming clearer as government moves its first six priority projects forward.

Announced on 15 September, the first wave covers several parts of the green hydrogen value chain, including sustainable aviation fuel, green ammonia, lower-emissions iron and steel, green methanol and domestic hydrogen demand.

The Phelan Green Group electro-Sustainable Aviation Fuel project in Saldanha Bay has reached a final investment decision after securing an off-take agreement and a $100 million equity commitment. Construction is expected to begin in the first quarter of 2027, with first exports targeted for the first quarter of 2029.

The other five projects are at different stages of development. The Coega Green Ammonia Project has completed early preparatory work but requires further commercial, technical and financing work before reaching a final investment decision. The Saldanha Hydrogen Direct Reduced Iron Project is at pre-feasibility stage, while the Prieska Power Reserve is at development stage.

The Green e-Fuels Producers Green Methanol Corridor is at pre-feasibility stage and is targeting European demand, while Green Hydrogen Solutions, which is focused primarily on South African demand, has completed front-end engineering design.

The significance for supply chains is that these projects extend beyond hydrogen production itself. Government says the wider green hydrogen economy should support industries including fertiliser, green iron and steel, sustainable fuels, equipment, engineering and related services. The full announcement on South Africa’s first six priority green hydrogen projects provides more detail on their respective stages.

That means a successful hydrogen economy could require an entire network of businesses and infrastructure around it.

Coega Could Provide a Glimpse of What Comes Next

One project that illustrates this approach is the Coega Green Ammonia Project, which government has identified as South Africa’s lighthouse green hydrogen project.

Through the Critical Infrastructure Programme Fund, the dtic is supporting Hive Hydrogen in developing the project. Hive Hydrogen has completed financial due diligence, unlocking R12.5 million of an initial R25 million in project-development funding, with a further R25 million funding application expected at financial close.

The importance of projects such as this extends beyond the production facility itself.

A large-scale green ammonia operation requires connections to energy infrastructure, industrial facilities, storage, transport and ultimately domestic or international customers. Each connection creates another part of the supply chain that needs to function effectively.

The Opportunity Goes Beyond Exports

South Africa has significant potential to become an exporter of green hydrogen-related products, but an export strategy on its own would leave much of the potential value outside the country.

The broader industrialisation approach creates another possibility.

Green hydrogen could support the development of industries that manufacture equipment, process raw materials, produce chemicals and fuels, and provide specialised technical and logistics services.

That could create a more complex industrial ecosystem in which companies supply one another rather than simply extracting resources and shipping them elsewhere.

President Cyril Ramaphosa has also called for greater local procurement, manufacturing, employment and skills transfer, arguing that Africa should participate across the hydrogen value chain as an owner, manufacturer, technology partner and producer. His announcement on the first wave of green hydrogen projects sets out the government’s position on local participation in the sector.

Government says South Africa’s industrial transition pathways point to tens of thousands of additional jobs and billions of rand in economic activity over the years ahead. These are projections rather than outcomes, but they highlight the scale of the ambition.

The Supply Chain Will Determine How Much Value Stays Here

Turning that ambition into an industrial reality will require more than funding individual hydrogen projects.

Renewable energy needs to reach production facilities. Equipment needs to be manufactured or imported and delivered. Hydrogen and its derivatives need to be stored and transported. Ports and export infrastructure need to handle new products. Manufacturers need reliable access to energy and inputs, while customers need a dependable route to market.

That makes coordination critical.

South Africa’s green hydrogen opportunity is therefore also a supply-chain opportunity. The country is not simply deciding whether it can produce green hydrogen. It is beginning to build the network of industries and infrastructure that could determine how much value that hydrogen creates before it leaves the country.

The success of the sector may ultimately be measured not by how much hydrogen South Africa produces, but by how much industrial activity develops around it.

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Logistics

From South African Orchard to Chinese Market: The Supply Chain Behind the Cherry Export

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Close up shot of a person hand picking cherries into a basket.

South African cherry growers can now sell into China for the first time, opening a major new market for the country’s growing cherry industry.

Agriculture Minister Willie Aucamp signed the market-access protocol with China’s General Administration of Customs in Beijing on 8 September. China imported about 586,900 tonnes of cherries worth US$3.3 billion in 2025, making it the world’s largest cherry importer.

For South Africa’s supply-chain industry, however, the interesting part starts after the agreement is signed.

Getting cherries from an orchard to a Chinese buyer requires a coordinated journey involving harvesting, packing, temperature-controlled logistics, road freight, export procedures, international shipping and distribution.

For a perishable product, every stage matters.

From Orchard to Packhouse

The export journey starts with producing fruit that meets the requirements of the destination market.

The new market-access protocol establishes the framework for South African cherries to enter China and forms part of the sanitary and phytosanitary arrangements governing agricultural trade between the two countries.

Once harvested, cherries need to move quickly through packing and preparation. The fruit then enters a temperature-controlled supply chain designed to maintain its condition while it travels towards the export gateway.

This makes logistics more than a transport function. Delays at the farm, packhouse, storage facility or during transport can reduce the time available for the rest of the journey.

The Journey to the Export Gateway

Where the cherries are grown will influence how they reach international markets.

South Africa’s cherry industry has expanded significantly in recent years, with planted area increasing from 185 hectares in 2012 to 819 hectares in 2024, according to industry body Hortgro.

As production grows, so does the logistics network needed to support it.

More fruit means more movement between farms and packhouses, greater demand for cold storage and additional transport capacity to connect production areas with export gateways.

The opening of China could therefore create opportunities beyond the growers themselves.

Then Comes the Export Process

Physical movement is only part of getting the cherries into China.

South African exporters also need to meet customs and origin requirements.

South Africa’s temporary zero-tariff arrangement with China came into effect on 1 May 2026. Qualifying exports can receive zero-tariff treatment if they meet the applicable rules of origin, although some tariff lines are subject to quotas.

SARS issues the Rules of Origin certificates required for qualifying exports. Exporters must also maintain the required documentation and comply with the scheme’s conditions to receive the tariff benefit.

For the supply chain, this means a shipment can be physically ready to leave South Africa but still be unable to move as planned if the documentation and customs requirements are not in order.

China is Only Another Link in the Chain

Once the cherries arrive in China, the journey is not over.

The shipment still needs to clear the relevant authorities, reach importers and move through China’s distribution network before reaching its final buyer.

That makes coordination across the entire journey particularly important.

A delay in South Africa does not simply mean a later departure. It reduces the time available for every stage that follows.

A New Market, And A New Logistics Opportunity

The Department of Agriculture expects the opening of the Chinese market to stimulate further investment in cherry production and estimates that it could create about 600 new jobs.

If production expands, the supporting supply chain will need to expand with it — from packhouses and cold storage to road freight, export services and international logistics.

That is what makes the agreement significant beyond agriculture.

South Africa now has access to a major new market. The next challenge is building a supply chain capable of getting those cherries there on time, in good condition and at a competitive cost.

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