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The Logistics Challenges to e-commerce In South Africa

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Retail e-commerce sales alone increased by a staggering $3 billion between 2019 and 2023, indicating a tremendous surge in global expansion for e-commerce. These astounding figures are expected to rise even further, prompting us to consider the accessibility of e-commerce in South Africa; and what challenges South Africans face in fully embracing the vast realm of e-commerce on a larger scale.

In this article, we will address the challenges faced by South Africans in effectively using international e-commerce platforms. We will exclude local online shopping for basic goods and focus on global e-commerce.

Identifying the problems

1. Lower-than-average online buying rates

Let’s start by addressing the initial misconception often associated with online e-commerce. Contrary to popular belief the vast majority of South Africans do have internet access. In fact, many South Africans are avid social media users which is exciting news. The problem in the online aspect of e-commerce is that we have lower than average buy rates or conversions from visitors to buyers.

There are two possible explanations for this, one is that South Africans have less and less money to spend on online shopping with the rising cost of living and the high unemployment rate in South Africa, making life difficult for many. The other possibility is that South Africans are not as enthusiastic about e-commerce, which seems like the more unlikely of these two possibilities.

2. Examples of the logistics challenge to e-commerce in South Africa

Amazon

Let’s assume you want to purchase items from an e-commerce site such as Amazon. First, you must contend with the fact that some items are simply not going to be available to buy in South Africa. Secondly, should you wish to buy something smaller such as this battery pack you will quickly learn that the tax and shipping costs will outweigh the cost of the item.

This does two things, firstly it makes smaller items impractical to buy from any buyer’s perspective. Secondly it prevents smaller consumers from buying items that may fit their price range, serving as a barrier to e-commerce entry.

The primary reason for this is the high customs taxes on imported goods. In essence, this isn’t caused by Amazon or any other e-commerce platform, but rather by another issue that the South African government has imposed, further complicating matters.

eBay

Should you wish to use a site like eBay, popular for finding niche items, you will face another challenge from a different source. Once you buy items from eBay, you’d need your own courier service ready as a middleman. These items will then be sent to the South African post office or SAPO. The main issue with your items passing through the South African post office is that often your items will simply disappear.

The main obstacles to future e-commerce growth in South Africa

1. High Tax on imported items.

Let’s look at an issue that affects everyone, regardless of wealth or social class: import taxes. Picture this scenario: you want to buy a shirt that is not available in South Africa. You make the purchase and now look forward to receiving your new shirt. However, you will quickly discover that a whopping 45% tax is levied on clothing items, calculated on the total value of your purchase.


Yes, that’s right the tax man wants almost half of what you paid for your item. This creates a situation where some items such as clothes are impractical to purchase. This is unfortunate to see because yet again, this unfortunately this is also imposed by the South African government.

2. A non-functional post office

With the high amounts of tax that South Africans pay, you would expect that entities such as the post office would have all the funding they need to operate effectively and provide a quality service to its citizens. You would unfortunately be mistaken, according to a report on BusinessTech the SAPO is currently under provisional liquidation.

This creates another cost of entry situation for international e-commerce participation from South African citizens and businesses. What I mean by this, is that under the current situation if you want your items to arrive with peace of mind, hiring a courier service to avoid the post office is a must.

3. Restrictive import regulations

Since the year 2013, a new customs law was implemented, whereby individuals are permitted to bring in no more than three imported consignments per calendar year. What this means is that if you wish to buy more than three items per year from international sources, you will have to register as an importer.

If this seems wildly out of touch regarding the number of items you wish to bring in for personal use, you’re not alone. This effectively places a hard-numbered limit on how much South Africans can participate in international e-commerce.

4. The existing strain on pockets 

Given the barriers to entry above and considering the already difficult state of both the South African economy and the high unemployment rate. It’s no wonder that very few South Africans participate in the e-commerce world.

Conclusion 

The challenges faced by South Africans in participating in e-commerce are multifaceted and have a significant impact on the growth and accessibility of online shopping in the country. Several key obstacles hinder the seamless adoption of e-commerce, limiting the potential benefits it can offer to both consumers and businesses. Most of these obstacles however stand firmly within the government’s ability to solve and are sadly self-inflicted issues.

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Transnet Chairperson Dr Andile Sangqu Headlines CILTSA ESG Conference

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CILT SA 2026, event sign-up poster.
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The Chartered Institute of Logistics and Transport South Africa (CILTSA) has confirmed Dr Andile Sangqu, Chairperson of Transnet, as keynote speaker for its ESG Conference taking place on Tuesday, 23 June in Sandton, Johannesburg.

Dr Sangqu will present “The ESG Greenprint in Action: Integrating Capital, Capability, and Commitment,” which will draw on his experience at the intersection of governance, infrastructure investment and sustainable transformation at scale. His participation adds weight to a programme designed to help logistics, transport and supply chain professionals move from ESG ambition to practical implementation.

Global Challenges and Local Solutions

According to the World Economic Forum, the global logistics sector accounts for approximately 11% of worldwide greenhouse gas emissions, and pressure from regulators, investors and consumers continues to intensify. 

Against this backdrop, the CILTSA ESG Conference offers a practical, solutions-focused programme shaped by leaders who understand the operational realities of the sector. Attendees will receive practical frameworks, financing insights and talent strategies to embed ESG principles across their organisations.

“This conference represents a defining step for our industry,” says Elvin Harris, President of CILTSA. “We have reached a point where ESG is a strategic business driver, and we are proud to bring together the voices, expertise and resources that will help South African logistics, transport and supply chain professionals lead that transformation with confidence and purpose.”

Practical Sessions for ESG Implementation

Directed by Ronald Muringai CMILT of the IMM, the programme features a strong line-up of industry practitioners and thought leaders.

An early session will explore how ESG principles can be integrated across a complex retail supply chain to drive resilience and growth. Celestin Ndhlovu – Vice President of Strategy, Business Planning and Marketing at Isuzu Motors South Africa, will examine the role of vehicle technology in the broader sustainability journey, with the shift to cleaner and more efficient transport solutions representing both an environmental priority and a commercial opportunity. Ctrack will add a fleet intelligence perspective, showing how data and technology can support more sustainable logistics operations.

Michelle van den Berg, Head of TDT Projects at Takealot Fulfilment Solutions, will share how one of South Africa’s leading e-commerce platforms is deploying electric vehicles and solar energy to build a scalable and sustainable last-mile logistics operation.

A dedicated funding panel will focus on one of the most pressing questions facing the sector: how to unlock the capital required to implement ESG programmes. Facilitated by Lauren Rota, Senior Director Sustainability SSA at DP World, the panel will bring together representatives from the Industrial Development Corporation, Absa (Bernard Vilakazi – Sector Specialist: Transport & Logistics), Nedbank (Sashen Singh – Senior Manager Sustainability | Strategy | Business and Commercial Banking) and the Development Bank of Southern Africa (Siloshini Naidoo – Head of Sustainability). The session will help demystify available financing instruments and provide guidance on how organisations can access funding for ESG-related projects.

Building the Capability to Deliver

The afternoon programme will shift to the people and capability required to deliver meaningful ESG progress. A talent-focused panel will be moderated by Liesl de Wet, Head of Organisational Sustainability at Unitrans and member of the RFA Green Transport Working Group.

She will be joined by Prof Rose Luke of the University of Johannesburg, TETA CEO Maphefo Ano-Frempong, Chantal Harding of People Shop, Aimee Girdwood of Stories Evolved, and Sandile Khoza, CILTSA Council member and Chairperson of the Ethekwini Maritime Cluster. Together, the panel will address the skills gap that threatens to slow ESG progress across the transport, logistics and supply chain sectors.

The conference will close with a timely case study on diversity, equity and inclusion as a competitive business metric, featuring Samuel Chakela, DEI Director at DSV Contract Logistics, and Nicci Scott Anderson, Founder of the SaferStops Association.

The CILTSA ESG Conference is sponsored by Isuzu, Ctrack, IMM Graduate School and SGS.

For more information, please visit https://www.ciltsa.events/5th-ciltsa-esg-conference/, email CILTSA at [email protected] or call 082 673 9697 / 087 133 0525.

Transnet Chairperson Dr Andile Sangqu 

Ronald Muringai

Liesl de Wet, Chairperson of the Road Freight Association’s Green Transport Interest Group

Bernard Vilakazi – Sector Specialist: Transport & Logistics: Absa

Sashen Singh – Senior Manager Sustainability | Strategy | Business and Commercial Banking: Nedbank

Michelle van den Berg, Head of TDT Projects at Takealot Fulfilment Solutions

TETA CEO Maphefo Ano-Frempon

Sandile Khoza, CILTSA Council member and Chairperson of the Ethekwini Maritime Cluster

Cluster Prof Rose Luke – Associate Professor: University of Johannesburg

Aimee Girdwood of Stories Evolved

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DHL Group Ramps Up New Energy Logistics as Demand for Energy Resilience Surges

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DHL Group has invested substantially in capabilities around the globe after identifying New Energy as a growth area in its Strategy 2030, which was announced in the fall of 2024.

  • Combines capabilities across Express, Global Forwarding and Supply Chain
  • Launches Time Definite Plus through DHL Express’s existing network, for bespoke customer requirements
  • Continues to expand network of electric vehicles, battery logistics and energy storage facilities

Amsterdam, June 11, 2026: Amid the backdrop of fossil fuel supply disruptions, DHL Group announced its plan to further strengthen its capabilities and presence in the New Energy sector. Based on strong customer demand for its services in this sector, DHL Group sees an opportunity to grow its revenue in New Energy logistics from around EUR 600 million in 2025 to EUR 3 billion by 2030. As the world refocuses on diversifying energy sources and building domestic renewable energy capacity for energy independence, DHL Group is gearing up to support these initiatives with new solutions across various segments.

DHL Group has invested substantially in capabilities around the globe after identifying New Energy as a growth area in its Strategy 2030, which was announced in the fall of 2024. The disruptions to fossil fuel energy supply have further increased the relevance of secure, resilient, and sustainable energy systems. Around three-quarters of the global population lives in countries dependent on imported fossil fuels, leaving them exposed to geopolitical disruptions1. DHL Group has developed end-to-end logistics solutions spanning eight key segments, including alternative fuels, battery energy storage systems, electric vehicles and their batteries, hydrogen, grid infrastructure, as well as solar and wind.

The energy transition is not happening through a single technology and a single supply chain. It is a set of different assets, that help countries to shift. DHL has the capabilities to help establish this new supply chains end-to-end, from parts and components to aftermarket support, at a global scale like no one else. Data from the International Energy Agency tells us that new energy is scaling at a record-breaking pace, outstripping all other power sources2. Our combination of reach, reliability, and sector expertise is what companies and countries can lean on to facilitate the energy transition and bolster resilience”, said Tobias Meyer, CEO, DHL Group.

Keeping Wind Turbines Moving

We are no strangers to the transport of large and complex machinery or the specific requirements of New Energy logistics. We have expertise in every single step of the supply chain, enabling end-to-end or modular logistics solutions. With more than 750 industrial project experts, a global network of warehouses, capabilities in multi-modal solutions and a dedicated Express aircraft fleet, we are ideally prepared to help our customers ramp-up supply chains and access new markets,” said Martyn Lawns, CEO, DHL Industrial Projects and Senior Vice President, Growth for New Energy, DHL Group.

The wind sector is entering a new phase, having reached around 1.3 terawatts (TW) of installed wind capacity globally. The industry is no longer just building wind farms but also operating them at scale, in turn opening more opportunities for DHL to lean into its expertise to support the maintenance, repair and overhaul (MRO) of these wind farms.

With many of these wind farms located remote places, our customers require us to get the spare parts quickly and efficiently to these sites. This is why we are launching our new bespoke service, Time Definite Plus, which uses the DHL Express network with added customized delivery options,” he added.

Time Definite Plus will offer scalability and efficiency through DHL Express’s existing network while adding services to meet bespoke requirements such as timed shipment delivery, special delivery requirements, Swap & Return solutions and delivery at challenging locations. This new service will be available in 22 countries and territories across Europe, with plans for further global rollout.

DHL’s network of front-stocking locations will also provide regional and local warehouses and transport support for MRO needs. It has more than 1,100 front-stocking locations that can deliver spare parts within a 4-hour window to 88% of wind farms globally. This can help minimize downtimes through global spare parts and maintenance, ensuring a reliable infrastructure for energy security.

Through the new Time Definite Plus service and its existing service logistics capabilities, customers can choose different service levels based on maintenance needs, from express delivery of critical large components to standard delivery of lower-cost smaller items.

Powering the Electrification Journey

DHL Group also continues to invest in the electric vehicles (EVs) and EV battery ecosystem, having announced new facilities for Europe. It recently broke ground on a new European Battery Logistics Hub in Holtum, the Netherlands, further expanding its European capacities for battery and energy storage logistics. The batteries handled at the Holtum site are intended for use in EVs as well as in the rapidly growing segment of battery energy storage systems (BESS), including home storage and solar energy applications.

The new site will offer 17,000 square meters of specialized storage and service space for high voltage batteries and is closely connected to DHL Supply Chain’s existing Holtum automotive operation located next door. Together, the two facilities create an integrated campus offering end-to-end solutions for electric mobility and energy systems across Europe. The new hub is scheduled to go live in early 2027.

It also opened an EV and Battery Center of Excellence (COE) in France, located in Meung-sur-Loire, and is currently expanding its footprint with additional locations nationwide. It offers a one-stop solution for compliant storage and distribution of EV parts and batteries, supporting inbound manufacturing flows and integrated aftermarket services. A recycling solution is already in place with specialized partners and be deployed from this COE.

DHL now has more than 20 EV COEs worldwide, with launches in India and Peru planned for later this year.

Customers looking to ship batteries will also have a new option with DHL’s Thermoliner solution. The Thermoliner solution is an innovative, patented integral insulation system manufactured by DHL that protects cargo from extreme temperatures and humidity. It also offers protection against thermal shocks, container rain (condensation), and cross-contamination.

The shift to New Energy is about building systems that are not only sustainable, but resilient and secure at scale. That requires supply chains that can adapt quickly, operate reliably and support growth across multiple technologies and markets.

This is where we come in with the proven ability to deliver integrated solutions across the Group, from infrastructure development and inbound to manufacturing, to transport and delivery to site, and finally, aftermarket, maintenance, decommissioning and circularity. We have a role in every step of the value chain, making New Energy Logistics a key growth opportunity for the Group,” said Oscar de Bok, CEO, DHL Global Forwarding.

  1. Three facts that show how solar and wind strengthen energy security | Ember
  2. International Energy Agency: Renewable power capacity is projected to increase almost 4 600 GW between 2025 and 2030 – double the deployment of the previous five years (2019-2024). Growth in utility-scale and distributed solar PV more than doubles, representing nearly 80% of worldwide renewable electricity capacity expansion. https://www.iea.org/reports/electricity-2026

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DHL Expands Asia Pacific Data Center Logistics Capabilities to Support Growing Regional Demand

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DHL workers walking in between a corridor of data servers
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The expansion includes more than 30,000 square meters of dedicated warehouse capacity currently in operation across Asia Pacific, with a further 130,000 square meters of committed expansion.

  • DHL Supply Chain adds more than 160,000 sqm of dedicated warehousing capacity in Asia Pacific to meet rising demand for data centers
  • Enhanced capabilities include upskilling workforce in advanced white glove handling and investing in specialized technical services
  • Expansion directly responds to Asia Pacific’s rapid data center growth, with the region set to become the world’s next major data center hub, attracting approximately USD$800 billion (~€730 billion) investment by 2030

Bonn, Germany / Singapore, June 9, 2026: DHL Supply Chain (DHL) today announced the expansion of its data center logistics capabilities across the Asia Pacific region, strengthening its position as a strategic partner for hyperscalers and data center operators as AI investment accelerates and largescale deployments move into execution.

The expansion includes more than 30,000 square meters of dedicated warehouse capacity currently in operation across Asia Pacific, with a further 130,000 square meters of committed expansion and built-to-suit development in Malaysia and Thailand scheduled to go live over the next two years. In total, DHL will support more than 160,000 square meters of data center logistics infrastructure across key markets in the region.

The expansion directly responds to Asia Pacific’s rapid data center growth and builds on a commitment that DHL Supply Chain made in March 2026 to add 10 dedicated warehouses in North America to address hyperscaler demands, as the company ramps up its data center logistics capabilities globally. Driven by rising demand for AI, cloud services, and digital connectivity, data center operators face increasing pressure to manage tighter timelines, complex cross-border supply chains, and the movement of high-value equipment into active construction environments. With the data center logistics market increasing from $23 billion in 2025 to approximately $35 billion by 2030, these complex environments call for speed, security, and specialized handling, which DHL is well-positioned to support the entire data center life cycle.

“Market projections show Asia Pacific as the world’s next data center hub, with approximately USD$800 billion (~€730 billion) in data center investment expected across the region by 2030,said Javier Bilbao, CEO, Asia Pacific, DHL Supply Chain. “As the region enters this sustained phase of largescale data center execution, customers need more than capacity; they need execution certainty. Our investments in dedicated infrastructure and advanced white glove capabilities are designed to deliver that certainty by combining precision, consistency, and speed in some of the region’s most demanding deployment environments.”

DHL’s expansion addresses these challenges by combining fully dedicated, high-security warehousing with specialized service logistics solutions that support complex, multi-phase deployment programs. A central pillar of the expansion is DHL’s investment in upskilling its workforce in advanced white glove handling and specialized technical services. This enables teams to shift critical preparation and integration work from live construction zones to controlled logistics environments.

White glove handling ensures servers, equipment and critical systems are moved under controlled conditions to reduce the risk of damage and delays. These capabilities oversee the full delivery process, from site survey reporting and route assessments to on-site preparation such as floor protection, cage management, and verification of part numbers. Installation and post reporting include rack installation, component verification, area cleaning, and completion reporting.

Specialized technical services further address the complexities of data center logistics. These services include server rack frame assembly, mounting components, intra-rack cabling, functional testing, and secure packaging to protect sensitive server equipment during transport. By building these technical skills in dedicated teams and completing these activities in purpose-built logistics hubs, DHL helps customers reduce on-site congestion, lower installation risk, and maintain build schedules, even as infrastructure density and deployment complexity increase.

The Asia Pacific expansion builds on DHL Group’s broader global investment in data center logistics, following a recent expansion of data center logistics infrastructure in North America.Data center logistics is a strategic growth priority for DHL, driven by the rapid development of digital infrastructure and AI,” said Amanda Rasmussen, Chief Commercial Officer, DHL Global Forwarding and Head of the Data Center Logistics Taskforce at DHL Group. “Building on recent investments in North America and now expanding further in Asia Pacific, we are mobilizing capabilities across the Group to deliver integrated, end-to-end solutions for every stage of the data center lifecycle. By drawing on our global network and specialist expertise, we enable customers to scale quickly, while ensuring the uptime, resilience and precision these complex operations demand.”

Together, these initiatives underscore DHL’s focus on data centers as a strategic growth sector and reinforce the Group’s ability to support customers with globally integrated, end-to-end logistics execution as digital infrastructure is scaled across regions.

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