AfDB’s Quaynor speaks on Transnet’s turnaround strategy

Transnet, the state-owned logistics company in South Africa, recently held its Connecting Africa Conference to discuss its turnaround strategy and the impact it has on trade within the continent. Solomon Quaynor, Vice-President for Private Sector, Infrastructure & Industrialization at the African Development Bank (AfDB), shed light on the partnership between the AfDB and Transnet to revitalize the company's operations. Quaynor highlighted the crucial role that Transnet plays in the South African economy as the leading logistics operator. He emphasized that without Transnet operating efficiently, it hampers the growth potential of the private sector due to its monopoly in the logistics sector. To address the challenges that have plagued Transnet in the past, the AfDB and the New Development Bank are supporting an initial recovery program with an investment of $2 billion, of which the AfDB has committed $1 billion. This funding aims to kickstart Transnet's rehabilitation of its infrastructure network, paving the way for future growth investments. One of the key issues affecting Transnet's performance has been the theft of copper wires on rail tracks, leading to derailments and operational disruptions. Quaynor expressed confidence in Transnet's ability to address these infrastructure disruptions and restore its operations to their former efficiency. He stressed that understanding Africa's infrastructure challenges is crucial for development institutions like the AfDB and the New Development Bank, as they are uniquely positioned to support initiatives that drive sustainable growth. In the context of regional integration and trade within Africa, Quaynor highlighted the significance of Transnet in facilitating trade corridors that extend beyond South Africa into the Southern and Central African regions. Transnet's operations are vital for the effective functioning of regional corridors that connect various African countries to the ports in South Africa. As a pan-African institution, the AfDB is committed to supporting Transnet in enhancing regional connectivity and trade flows across the continent. Quaynor's insights underscore the importance of collaborative efforts between development banks and key stakeholders like Transnet in driving economic development and trade facilitation in Africa. By addressing infrastructure challenges and investing in key sectors like logistics, the AfDB aims to contribute to the sustainable growth and integration of regional economies across the continent.