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Tackling youth unemployment and building a stronger economy: How procurement can help

Published

5 years ago

on

Leon Steyn CEO of Dante Deo

The future of the global and local economy depends on the youth, but this is something many of us appear to have forgotten in the last 20 years. As business leaders, we have a responsibility to look after the economies we inherited from previous generations and prepare the way for the youth to step into our shoes. But with 63% of young people in South Africa aged 15 to 24 currently unemployed, it’s clear that we’ve missed the mark. Whether this is as a result of poor leadership, corruption, wasteful expenditure, or simply being too busy with what’s in front of us to plan for what lies ahead, is up for debate. However, the fact remains that if we don’t urgently prioritise job creation and youth skills development, the future of the South African economy looks perilous.      

Fortunately, we can take steps to address our shortcomings. Solutions rely on big companies stepping up to make a difference, small companies sprucing up to do better business, and government letting them get on with it. Here’s how I think we could work together to help the youth of today become prudent leaders and powerful consumers of tomorrow.

Addressing the experience gap

Both government and private entities have, for the last few years, focused on skills development. We’ve seen an increase in training programmes, technical skills institutes, support structures, and government-run agencies like the SETAs. So, ostensibly, the knowledge and skills are there. However, the third element in workforce capability – experience – is what’s lacking. And, without it, our youthful job seekers are at a loss.

A friend use to say that we have to allow future leaders to make mistakes, because that’s when they learn. Knowledge and skills can be taught fairly quickly, but experience takes time. To solve this problem, big and small companies need to commit to running meaningful, beneficial internships for the ‘green shoots’ in our workforce. Not tea-making internships, but ones where the trainee gains valuable experience and insight into their chosen industry. So that, at the end of the programme, they aren’t disappointed when the internship doesn’t turn into a full-time position, because they’ve got two other job offers on the table.

The next step is where procurement comes in. Even a skilled, experienced job seeker faces unemployment if they enter an economy where there are no jobs. So, how can we make skills development programmes and meaningful internships productive? How do we create opportunities for young job seekers in South Africa?  

Sending your procurement spend in the right direction  

In my 20 years in the procurement industry, I’ve noticed that the big organisations we assist have around 3 000 vendors on their books, but 80% of their spend goes to 100 suppliers. Why is that? In some cases, it’s in the interest of speed and efficiency. But how will we grow our economy if the same few names continue to dominate the market?

At Dante Deo, we’ve been doing things a bit differently. When we work with the big-name vendors, we award contracts – worth millions of rands – on condition: that they agree to employ and develop smaller players in the market.

This doesn’t just mean outsourcing 20% of the job to small businesses – as government tenders stipulate, but leveraging that established and renowned company to make a real difference. In a service integrator role, they could assist with practical skills training, as well as help take a small business from good to great. I want to see big players leading and developing smaller players, building everything from practical skills to sound finance and marketing departments. Because, in my experience, that’s often where small businesses fall short. They offer a good service, but don’t have the knowledge or experience to run a business. With a bit of help, they could start hiring their own accountants, tax experts, operations managers, and HR teams. Which will create job opportunities and open up the market to more than a handful of vendors.        

Why rural sourcing deserves the spotlight

Initially, those of us in procurement were excited about outsourcing. Then, when international fees became too high, the trend towards near-sourcing emerged. Now, with COVID-19 proving that we don’t need to be in offices or even city centres to be productive, rural sourcing or onshoring has become an appealing option. With a laptop and Internet connection, people in Rustenburg, Estcourt, and Langebaan can service projects anywhere. And, because the cost of living is substantially lower in outlying towns, there are cost-saving advantages to rural sourcing, too. Why should we drive people from Joburg or Pretoria to service a mine in Middelburg? Surely businesses in that community would benefit from doing the job themselves?   

Now, if there’s a project in the Midlands, let’s ask the big-name vendor not only to help develop 10 smaller players as part of the job, but to make sure that those small players are within a 50km radius from where the project is based. That way, we’re building small sustainable businesses, increasing job opportunities, and developing skills in previously neglected communities. If that isn’t a win, win, win, I don’t know what is.

In helping the youth, you’re helping yourself  

In 2016, Microsoft South Africa partnered with the city of Joburg to train 1 million citizens in digital literacy. An indirect benefit of this was that they probably also increased the number of Microsoft license users. This is what companies should realise: solutions like internships, innovative procurement, and active rural sourcing have the potential to change the lives of South Africa’s youth and significantly increase your bottom line. The youth of today will be the consumers of tomorrow, and if they’re going to buy your product one day, they need your help now.  

We don’t need to rely on government to incentivise strategies like this; we should be pursuing them because they are right for the economy, and right for business. Let’s let government focus on building infrastructure, improving network connections, providing proper roads, sanitation, and rubbish removal, and let businesses do what they do best – grow. As business leaders, we should focus on productivity, output, and growth, three key ingredients to economic activity. Hopefully, we’ll pass the recipe down to future leaders so they can confidently take South Africa’s economy into the future.      

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Logistics

DP World Leaders Announced as Keynote Speakers at GCCA African Cold Chain Conference 

Published

4 days ago

on

July 22, 2026

By

Admin

Two leaders at global logistics pioneer DP World are announced as keynote speakers for the Global Cold Chain Alliance (GCCA) African Cold Chain Conference in Johannesburg, taking place September 2-3, 2026.

DP World operates in every continent of the globe, employing more than 126,000 people from 169 nationalities, powering international trade through a range of solutions including cold chain logistics across ocean, air, road and rail. William Sears, Chief Commercial Officer Logistics for Africa at DP World; and Mohammed Mahomedy, Head of Infrastructure and Rail for Africa at DP World, will take to the conference main stage on September 3 to share their insights into DP World’s approach to integrated logistics at scale in practice.

  • William Sears has over 20 years’ experience in logistics and supply chain optimisation across a range of industries and disciplines. Having joined South African logistics business Imperial in 2010, William was appointed to DP World leadership following Imperial’s acquisition by the global business in 2022.
  • Mohammed Mahomedy leads DP World’s development of the company’s rail and ports integration strategy across the African continent. He is responsible for identifying strategic opportunities that support the expansion of DP World’s presence across the broader logistics value chain in line with its long-term objectives in Africa.

The GCCA African Cold Chain Conference will bring together temperature-controlled logistics businesses and partners from across the continent to examine the industry’s most pressing challenges and exciting opportunities, exploring the theme of ‘It’s Time for Dialogue: Exploring Progress, Priorities, and Partnerships’. The event includes an outstanding program of renowned speakers, panel discussions, networking receptions and a high-quality exhibition. Find out more and register at www.gcca.org/events/gcca-african-cold-chain-conference.  

GCCA Senior Vice President Global Market Engagement Adam Thocher said: “I am delighted that DP World’s William Sears and Mohammed Mahomedy will be sharing their insights and experiences on the crucial topic of integrated logistics at scaleas the keynote speakers at the 2026 GCCA African Cold Chain Conference. Temperature-controlled logistics operations are expanding throughout the continent:connecting Africa’s cold chain and investing in associated infrastructure will be fundamental to Africa’s future food resilience and global trade opportunities. The GCCA conference is creating a unique forum for cold chain operators and partners to discuss the food supply chain’s challenges and opportunities at national and global levels.”

The two DP World leaders will be joining an outstanding line-up of expert speakers at the conference, including:

  • Brent Melvin (General Manager RSA Logistics Dubai) sharing experiences of the cold chain’s response to extreme disruption in the Middle East
  • Dr. John Deng Diar Diing (Executive Secretary of the Northern Corridor Transit and Transport Coordination Authority), discussing regional corridors as catalysts for intra-African trade
  • Dr. Newton Matope (CEO of Cold Solutions Kenya and GCCA Africa Chairman), exploring the temperature-controlled logistics industry in the continent, and
  • Sara Stickler (President & CEO, GCCA) and Adam Thocher (Senior Vice President, Global Market Engagement, GCCA) on GCCA’s priorities and action in Africa.

Find out more about the GCCA African Cold Chain Conference 2026 at www.gcca.org/events/gcca-african-cold-chain-conference/

Mohammed Mahomedy Head of Rail and Infrastructure for Africa at DP World

William Searss, Chief Commercial Officer Logistics Africa, DP World

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Management

The Hidden Formula Behind High-Performance Warehousing

Published

5 days ago

on

July 21, 2026

By

Admin

As SAPICS celebrates 60 years of impact in 2026 under the theme “Legacy to Leadership: 60 Years of Connection, Collaboration & Transformation,” South African supply chain executives face an urgent call to action.

With soaring road freight volumes, warehouse occupancies topping 85%, and compounding rental hikes, local leaders rushing to automate frequently fall into a costly trap. While modern warehousing technology can greatly assist in slicing operational costs and slashing inventory losses, investing heavily in off-the-shelf systems without addressing underlying operational bottlenecks often amplifies the chaos rather than solving it.

True leadership requires recognising that technology is not a standalone silver bullet; transformation happens when advanced process design meets a flexible, digitally prepared workforce.

Why More Technology Doesn’t Always Mean More Progress

When margins shrink, the instinctive corporate reflex is to slash headcount or purchase an automated tool because a competitor did. However, automating a broken process simply yields an automated mess.

“A lot of technology is available off the shelf, and it is dangerous to buy something you don’t thoroughly understand,” warns Willie du Preez, Managing Director of Programmed Process Outsourcing (PPO). “If you don’t understand where your operational bottlenecks are, you will introduce the wrong technology.“

Du Preez notes that real return on investment (ROI) stems from a deep diagnostic phase. This means utilising industrial engineering to map workflows and eradicate systemic friction before buying hardware. Without this groundwork, companies end up with fragmented patches instead of a unified ecosystem, losing critical institutional knowledge.

Furthermore, traditional data tracking compounds this vulnerability. “After-the-shift or month-end information has become obsolete,” Du Preez stresses. “We need real-time data frameworks to make decisions proactively before bottlenecks disrupt the entire chain.“

The Business Case for What Doesn’t Appear on the Balance Sheet

Optimising a warehouse requires looking far beyond obvious hardware and immediate software implementation costs. True operational leadership requires a comprehensive evaluation of regulatory complexity, strategic risk, and financial agility.

“When an organisation conducts a deep cost-benefit analysis, the ‘invisible’ levers of outsourcing become undeniable,” explains Jeandie Leone, Commercial Executive at Workforce Staffing and Outsourcing. “A strategic partner doesn’t just manage transactional headcounts; they absorb significant balance-sheet liabilities. For instance, compliant employers in South Africa must navigate complex regulatory requirements, spending 1% of payroll on Skills Development Levies and up to 6% on continuous training. In outsourcing key components of your workforce, these administrative and training burdens shift entirely to the expert partner.“

Leone emphasises that this strategy fundamentally transforms how human capital impacts corporate finances. “Labour is traditionally one of the highest flat operational expenses (OpEx) for most logistics businesses, yielding zero return on scorecards. Outsourcing allows companies to route this heavy spend through a fully compliant partner, converting a standard operating cost into powerful preferential procurement spend for their B-BBEE scorecard.“

Furthermore, Leone highlights immediate cash flow advantages. “In high-volume environments, managing internal payrolls places immense pressure on working capital. Partnering with an provider that offers standard 30-day payment terms effectively allows a business to defer massive payroll expenses for that period, interest-free. This frees up vital cash flow to reallocate into core technological infrastructure.“

The Strategic Power of Operational Convergence

Even with engineered processes and real-time dashboards, technology remains inert without the people trained to pilot it. In South Africa’s high-attrition warehousing environments, the traditional model of renting generic labour on one side and managing operations on the other is no longer viable. To maintain operational continuity and protect margins, supply chains must merge Temporary Employment Services (TES) and Business Process Outsourcing (BPO) into a singular, symbioticoperating model.

“The relationship works best when both parties are intertwined within the exact same operating solution for the client,” explains Quintus Sliep, Managing Director of Worldwide Staffing. “The TES partner delivers workforce agility by sourcing, onboarding, and scaling compliant personnel as volumes shift. Concurrently, the BPO partner injects the process structure, productivity metrics, and management control that allow that workforce to perform properly.“

When these two disciplines operate in isolation, operations fracture. Integrated, the client receives a scalable solution that maintains strict process discipline during volatile demand spikes.

Leone concurs, adding a regulatory and risk perspective: “Outsource partners bring dedicated legal and operational expertise needed to handle industrial relations, recruitment pipelines, and time and attendance. This ensures absolute continuity, leaving the client’s internal teams free to focus strictly on macro supply chain strategy.“

Bridging the Digital Skills Gap

This integrated approach is critical to addressing one of the industry’s most pressing operational challenges: preparing workers for increasingly digital environments. In modern, data-driven warehouses, traditional once-off classroom training is no longer enough. Software platforms evolve continuously, compliance requirements shift rapidly, and scanning and automation systems are updated in real time.

“We shouldn’t talk about automation or robotics purely as job threats; they support people rather than replace them completely,” says Sliep. “The bigger risk is the skills gap between where operations are going and where the workforce is today. The TES provider must prepare people for the environment, and the BPO must manage that environment so workers can use technology productively.”

Closing this gap requires ongoing collaboration between workforce enablement and operational management. Together, TES and BPO partners create continuous learning environments that equip workers to adapt alongside technology rather than be displaced by it. The result is a more resilient, digitally capable workforce able to engage confidently with evolving systems, workflows, and operational demands.

Operational resilience depends on aligning technological progress with human capability. As du Preez concludes, “Technology alone does not drive transformation; people and their knowledge do.”

Willie du Preez

Quintus Sliep

Jeandie Leone

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Logistics

Delivering Change: How Logistics Helps Connect Communities and Create Social Impact in South Africa

Published

1 week ago

on

July 17, 2026

By

Admin

Every day, FedEx connects people, businesses and communities through its global network. While that network is best known for moving packages around the world, its impact extends beyond commerce. The same expertise that helps keep supply chains moving can also help connect communities with the resources, opportunities and support they need to thrive.

Across South Africa, community organisations are working to address local challenges and expand opportunities for young people. Their impact, however, depends not only on funding and commitment, but also on the ability to reach people consistently and effectively. From delivering essential resources to bringing together volunteers and community partners, logistics plays an important role in turning good intentions into meaningful action.

“Social impact does not happen in isolation,” says Nelson Teixeira, Managing Director of Operations for Sub-Saharan Africa at FedEx. “Whether it’s supporting youth programmes, enabling volunteers or helping organisations reach underserved communities, reliable logistics plays an important role in making that impact possible.“

Through FedEx Cares, the company’s global community engagement programme, FedEx works alongside nonprofit organisations, customers and team members to help strengthen communities, create opportunities for young people and inspire employee volunteerism. In South Africa, this commitment comes to life through initiatives that reflect the spirit of Mandela Day – bringing people together to make a meaningful difference through collective action.

One example is FedEx Play Parks, delivered in partnership with Kids Collab. The initiative expands access to safe, inclusive and structured play spaces for children in underserved communities, helping support physical development, social wellbeing and stronger social connections.

Complementing this effort, FedEx Day of Play brings together children, community organisations and FedEx volunteers through activities that encourage participation, play and connection. As part of the company’s Mandela Day activities, it reflects FedEx’s commitment to creating positive experiences that leave a lasting impact.

FedEx also supports organisations such as Sporting Chance, whose Street Soccer Programme uses sport to promote youth development, life skills and social inclusion. Together, these initiatives help create environments where young people can build confidence, develop new skills and realise their potential.

“Collaboration is essential when it comes to addressing complex social challenges,” says Teixeira. “Community organisations bring local knowledge and trusted relationships, while businesses can contribute skills, resources and operational expertise. When these strengths come together, it becomes possible to create initiatives that have a broader and more lasting impact.“

That spirit of collaboration is reflected in the commitment of FedEx team members, who volunteer their time and expertise alongside community organisations throughout the year. Their involvement demonstrates that creating meaningful impact is not only about investment, but also about showing up, contributing and supporting the communities where they live and work.

As South Africa continues to create new opportunities for young people and strengthen community wellbeing, collective action will remain essential. Through FedEx Cares, FedEx remains committed to using its people, expertise and global network to help create opportunities, strengthen communities and deliver lasting social impact.

“At its core, logistics is about connecting people with possibility,” concludes Teixeira. “When those connections help young people access new opportunities and strengthen the communities around them, we see the impact that is possible when we work together.“

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