Latest news with #R5.2bn
TimesLIVE
27-05-2025
- Automotive
- TimesLIVE
Zeda records lower revenue as corporate customers delay investment
Car rental group Zeda, which operates the Avis and Budget businesses, reported lower revenue for the half year to March as the challenging trading environment forced corporate customers to delay investment decisions, including fleet replacement and holding onto vehicles for longer. Small to medium enterprises (SMEs) also came under similar strain, particularly in the mining and transport sectors. Revenue was down 1.6% to R5.2bn. The leasing business segment delivered a solid performance, with revenue increasing by 5.6% to R1.4bn, underpinned by increased penetration within the corporate, heavy commercial fleet and the rest of Africa businesses. The leasing business maintained its growth trajectory, despite the overall delayed fleet investments, Zeda said. It said the upward trajectory of additional revenue was affected by corporate customers delaying replacement cycles and some constraints from SMEs with contracts in the mining and transport sectors in South Africa. Heavy commercial remains a steady growth pillar for Zeda, with a healthy order book. The car rental segment's revenue decreased by 4% to R3.8bn due to a drop in used car volumes. However, excluding the car sales business, rental revenue remained flat. 'We were able to defend the revenue levels despite a decline in the replacement and inbound business. Rental days increased by 2.5%, primarily driven by a 49% rise in the short-term subscription business, following an improvement in technology that made transactions easier for customers,' said Zeda. Zeda has on average more than 20,000 vehicles in its fleet in Southern Africa. Its customer segment base is diversified and consists of the private sector, public sector, insurance business (replacement), inbound market, domestic leisure market and short-term subscription. This business provides a range of self-drive and driven products and services, including car and van rental, chauffeur services and luxury vehicle services. 'In a period where traditional car rental and vehicle sales faced mounting pressure, our leasing, subscription and greater Africa strategies delivered, helping grow earnings, improve margins and continue investing for the long term. 'We achieved this through a stringent implementation of the operating model of financing right, buying right, using right and disposing right,' said Zeda CEO Ramasela Ganda. Zeda anticipates improved performance in the second half of its 2025 financial year, driven by stronger car sales, contract renewals and subscription momentum. Ganda said the bedrock of Zeda's growth pillars consists of the subscription business, the corporate leasing book, greater Africa, and the used car business. 'These pillars provide us with access to vehicles, markets and a disposal channel, which are core to our fundamentals, which remain strong despite the challenging trading environment.'
Zawya
05-05-2025
- Business
- Zawya
The new map of African logistics
Africa's logistics and transportation sector stands on the brink of major transformation. From deepening geopolitical complexity to a renewed push for private-sector involvement, 2025 is rapidly becoming a defining year for how goods — and economic growth — move across the continent. These changes present immense opportunity for those who understand the shifting dynamics early. At Calleo, we deliver market intelligence that empowers organisations to see around corners — and act with confidence. Drawing on a wide range of recent developments across the region, we explore five major trends reshaping the logistics and transport ecosystem across Africa. Whether you're an infrastructure investor, supply chain operator, or policymaker, understanding these themes is key to building resilience and unlocking growth. The Infrastructure Catch-Up: Scale, Urgency, and a New Approach to Delivery Africa's infrastructure deficit is neither new nor surprising — but what is new is the pace and shape of response we're now seeing. 2025 has already witnessed significant commitments to road, rail, and port projects from both the public and private sectors. In South Africa, the government is pushing forward on revitalisation efforts across its failing logistics backbone. Projects like the expansion of Durban Port and aggressive reforms by Transnet signal that freight transport has moved higher up the national agenda. The urgency is warranted — inefficient ports and rail networks are already costing billions in missed opportunity. In fact, South Africa's citrus industry alone lost R5.2bn in one season due to logistical bottlenecks. Neighbouring countries are not standing still either. Namibia's £240m mega-project, backed by the African Development Bank, aims to overhaul its internal road network and enhance trade connectivity. In Mozambique, a €82m rehabilitation of the N4 corridor to South Africa underscores how regional players are thinking beyond borders to build economic corridors. Yet, what's increasingly clear is that traditional delivery models are no longer fit for purpose. Fragmented governance, long timelines, and funding gaps are forcing governments to explore hybrid models — from public-private partnerships to outright concessions. A more agile, collaborative infrastructure model is fast becoming the new norm. The Private Sector's Strategic Expansion: From Supporting Role to Leading Force In the past, the private sector often played a supplementary role in logistics reform. Today, it's increasingly taking the lead — innovating, investing, and in some cases, bypassing state dysfunction altogether. Take UPD, a unit of the Clicks Group, which recently launched Africa's first solar-powered refrigerated electric vehicle fleet in South Africa. This is not just a sustainability initiative — it's a statement about resilience, independence from unreliable power grids, and a commitment to cold-chain innovation. Elsewhere, ICTSI is actively stepping in to improve operational capacity at South African ports, while mining and export conglomerates are independently funding billions in rail upgrades to avoid the costs of delay and inefficiency. Even legacy players like Isuzu are rejecting the EV hype in favour of diesel-based strategies tailored to African terrains — proving that context-specific strategies matter more than global trends. This shift has important implications. Companies are no longer just logistics users; they are infrastructure stakeholders — often moving faster than governments. The competitive advantage now lies in acting early, forging the right partnerships, and leveraging intelligence to predict where the next bottlenecks — or breakthroughs — will be. A Geopolitical Chessboard: Trade, Power and Strategic Corridors Africa's transportation infrastructure is not just about economics — it's fast becoming a geopolitical instrument. As trade tensions between the United States and China continue to reverberate, Africa has found itself in a tug-of-war for influence, investment, and access. The evolving status of AGOA (African Growth and Opportunity Act) and its uncertain renewal have raised alarms in South Africa, prompting urgent conversations about reciprocal trade deals and supply chain resilience. Simultaneously, China is deepening its logistics footprint through strategic projects across the SADC region, from railway expansions in Zambia to new road infrastructure in Namibia. The 'Great Railway Race' between China and the US is more than rhetoric — it's reshaping the continent's transport geography. For African economies, this presents both risk and reward. Aligning too closely with one bloc may threaten long-term independence, while remaining neutral risks losing competitive advantages. The most strategic players will use market intelligence to understand these dynamics early — and to position themselves at the intersection of opportunity. Technology and Sustainability: Disruption in Motion Digitisation and decarbonisation are no longer on the horizon — they are unfolding across African logistics networks today. We're seeing increased adoption of digital supply chain platforms, more intelligent port scheduling systems, and widespread use of telematics to optimise fleet performance. South Africa, in particular, has shown leadership in pushing for digital customs systems, remote container management, and smart warehouse solutions. At the same time, the continent is beginning to see its own innovation paths emerge — shaped less by global carbon policy and more by real, local constraints like power outages and rural connectivity gaps. That's why solar-powered EV logistics fleets and off-grid cold chain systems are getting traction — not just as green solutions, but as practical ones. The companies that succeed will not be those that copy-paste European or North American models. They will be those who understand Africa's energy, mobility, and consumer landscape — and adapt technology accordingly. Structural Headwinds: The Cost of Inaction Despite the innovation and investment, Africa's logistics sector remains hampered by deeply embedded structural issues. In South Africa, truck congestion in Richards Bay, recurring delays at Cape Town port, and border post closures continue to disrupt regional trade. In Mozambique, civil unrest has cut port volumes, while in Zambia and Zimbabwe, border inefficiencies and outdated customs protocols continue to constrain growth. Moreover, infrastructure investment is often concentrated in urban or high-volume corridors, leaving rural supply chains fragmented. For companies operating pan-African networks, the reality is still one of disjointed systems, inconsistent standards, and unpredictable policy environments. That's why real-time, region-specific intelligence is no longer a nice-to-have. It's a strategic necessity. Insight is the New Infrastructure In an environment as fast-moving and politically sensitive as Africa's logistics sector, decision-makers cannot rely on historic data or static plans. They need timely, accurate, forward-looking insight. At Calleo, we help businesses track the developments that matter — from port expansions and policy shifts to emerging players and supply chain threats. We turn fragmented news into actionable intelligence, so our clients can plan, partner, and pivot with confidence. If your organisation needs to track trends and developments in logistics — or any sector across Africa — we can help. Our market intelligence services are tailored to support strategic planning, competitive positioning, and operational resilience.
Zawya
03-04-2025
- Automotive
- Zawya
Point-of-sale technology is critical for South Africa's auto industry revitalisation
The South African automotive sector was lauded as one of the champions of the country's economy, with the President Ramaphosa announcing a variety of investment plans, industrialisation programmes and local production expansion. While larger operators are ahead of the curve when it comes to tech adoption, smaller players in the aftermarket must not be left behind. The South African automotive industry is one of the country's most promising economic sectors, driven by significant investments in world-class manufacturing ecosystems. Special economic zones, such as the Tshwane Automotive Special Economic Zone in Gauteng and the Coega Special Economic Zone in the Eastern Cape, have attracted major original equipment manufacturers. Companies like the Ford Motor Company, which recently committed R5.2bn to its local operations, are investing in advanced technology and high-quality vehicle production for both local and export markets. However, skills and infrastructure constraints could still hinder efforts to scale and enhance the industry's sophistication. BMW "iFactory" principle, for example, uses digitalisation and AI integration in its production processes to enhance sustainability and optimise resource efficiency. Ford is also heavily invested in big data analytics to track its global supply chain and reduce its carbon footprint, using data to identify areas for improvement in energy consumption and waste reduction. Likewise, Toyota is actively implementing digital systems within its production facilities around the world, including in South Africa. While these manufacturers have consistently demonstrated faith in the South African economy, investing billions into cutting technology and dealer networks, the aftermarket, especially on the smaller scale should not be left behind. While factories may be digitised, even using the latest technology to manage operations, the aftermarket sector is often lagging with limited resources, skills and, more so, competition Fragmentation and legacy systems The challenge it faces, however, is a high level of fragmentation, and while competition is good (especially through many small and medium sized enterprises), it can lead to consistencies. In addition to vulnerability to counterfeit products, which compromise safety and reliability, fragmentation can create significant skills and process inconsistencies. It is still quite common to find a local parts dealer still using paper to record incoming and outgoing stock deliveries. Not only is this cumbersome and time consuming it can lead to more errors, reducing customer satisfaction and opening the door to abuse. For those that use technology, many are still stuck using legacy systems to track their operations. Cutting costs by implementing technology Embracing new technology is crucial at every point of the supply chain from the assembly plant to the dealer showroom, to repairs and parts. Even the smallest parts dealers can benefit from specialised package handling, code scanning and smart barcode label printing devices. By streamlining operations using intelligent solutions, dealers can free up resources from time-consuming (and error prone) work like manual stock taking. In practice, this can collapse a stock taking from several days to just half a day. Staff can focus on more strategic and technical tasks that involve dealing with customer needs and better business process. So, while an investment may be made upfront, the cost savings are immediately felt, if not financially, in terms of time, accuracy and even the stress that these legacy systems cause in workers. Training is essential While technology has the potential to fundamentally transform a business, its use needs to be guided by a comprehensive training strategy that emphasises rapidly evolving system. A basic understanding of modern digital tools, supported by robust data analysis capabilities ensures the users aren't just learning how each platform works, but how their internal processes improve over time. This is not static, nor is it rigid, but calls for a major shift in how people deploy smart transactional systems in various contexts. This interplay between strategic thinking and intelligent systems can turn something as mundane as supply chain management into innovative solutions that propel an entire industry into the digital economy. For instance, many companies around the world are using digital twin technology to map virtual replicas of their supply chains, allowing them to simulate scenarios, predict disruptions, and optimise logistics. The ability to develop innovative strategies and unlock new growth and opportunities knows no bounds, limited only by the creativity and passion of users. The aftermarket, leveraging the broader automative industry's investments and its leading position in South Africa's economy, presents huge potential to introduce new automation technology in a meaningful way, producing both immediate and long-term benefits.
