The recent unrest has prompted the question: could the supply chain networks and links operate differently to prevent similar disruption in future?
A convoy of trucks carrying essential goods just outside Harrismith. File photo: SEBABATSO MOSAMO
The reality is that the protests, followed by prolonged unrest and looting sprees, have destroyed and disrupted vital transport, logistical, warehousing and distribution facilities in the two provinces. The SA economy was already reeling from the impact of the Covid-19 related lockdown, with the general supply of goods and services already suffering. This crisis can only exacerbate these challenges.
While some calm has been restored in the two provinces, the damage is already done, and the long-term consequences will be felt for years. From more job losses, to the closure of businesses, a reduction in fiscal income due to lower tax contributions, large scale disinvestment and slowing foreign direct investment flows. This has a ripple effect on the state’s ability to foster economic recovery, pay social grants and build key economic infrastructure .
Additionally, technological integration of our supply chain networks and distribution could help the industry continue to serve the market even when disruptions occur. Alternative logistics technologies such as drones could be used right now to distribute supplies even to risky areas. A deliberate reinvestment into our manufacturing sector will also be key to ensuring that we not only get out of this difficult situation but prevent shortages when disruptions occur in future.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bafana coach Broos back in SA this weekend to prepare for World Cup qualifiersBafana Bafana coach Hugo Broos is expected in the country on Saturday morning with his Macedonian assistant Čedomir Janevski to start preparations for the World Cup qualifiers.
Read more »
Poor preparation sunk SA in Olympics, says BoothFormer SA U-23 defender Matthew Booth has come to the defence of the team following their disappointing show at the Tokyo Olympics. RealNevilleK
Read more »
WATCH: ArcelorMittal SA returns to profitArcelorMittal SA CEO Kobus Verster talks to Business Day TV about the company’s interim results
Read more »
Violence in SA | Banks ready to service grant beneficiariesBanks say they are expecting to service over 12.5 million social grants beneficiaries from 1 August.
Read more »
Survivor SA: It's now a numbers game'Survivor' host Nico told the castaways that in the end most of them would be sitting on the jury and would not be judging the remaining players for being nice.
Read more »
COVID-19 in SA | Expert says August will be a grim periodMore COVID-19 cases, hospital admissions and deaths are expected in the coming weeks.
Read more »