South Africa's Ports Hit Rock Bottom in Global Rankings

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The South African ports and metropolitan municipalities are in decline. The country's ports were ranked the lowest among the 400 sampled globally by the World Bank and the S&P Global Container Port Performance Index. The Port of Durban was ranked 398th out of 400, and the Port of Cape Town 400th out of 400.

At the same time, the Auditor-General of SA, Tsakani Maluleke, has reported that the country's metropolitan municipalities are regressing not only in audit outcomes but also in financial health and service delivery. None of South Africa's eight metropolitan municipalities obtained a clean audit status. These metros, the City of Joburg, City of Cape Town, eThekwini Metropolitan Municipality, City of Tshwane, City of Ekurhuleni, Mangaung Metropolitan Municipality, Buffalo City Metro, and Nelson Mandela Bay, account for nearly 54% of local government expenditure and serve about 40% of the country's population and households.

Merit-based appointments in municipalities and state-owned enterprises could resolve the decline in key government sectors that are engines of economic growth, according to experts. Professor William Gumede, an expert at the Wits School of Governance, said only competent people must be appointed to public institutions, and cadre deployment should not be allowed in key spaces; everything must be merit-based.

Gumede said that when incompetent people are hired at key public entities such as ports, entities collapse. He highlighted that if deciduous agricultural products are destroyed at the port before they even reach their intended destinations, due to inefficiencies, it becomes a disaster not only for the companies involved but for the entire ecosystem. This affects the GDP as well, since agriculture, together with the mining sector, has carried the country's GDP over the years.

Some local logistics experts argued that the World Bank's CPPI measures purely vessel time-in-port, and ignores geography, weather, and landside evacuation. However, Gumede said this was a 'defensive' reaction, as other countries experience worse weather issues than South Africa, and yet they are managing.

Gumede stated that most metros are failing due to a lack of political accountability. The National Treasury has withheld R13.5 billion in equitable share transfers from 69 defaulting municipalities in all nine provinces, including some metros, which have failed to comply with financial regulations and other financial management prescriptions.

In an interview, Gumede said, 'We must know who the directors are, and whether they have any links to certain political parties or politicians. Their performance or competency can be evaluated publicly.'

Gumede highlighted that a Public-Private Partnership system must be put in place, where companies are not given any money for the tender by the government, but instead raise their own funding through commercial banks and other means, and then be allowed to operate the facilities for a certain number of years before handing them over to the state.

This would eliminate tender fraud and ensure that companies awarded tenders are competent and have a proven track record of efficient service delivery. Gumede stated that proper vetting of people involved in supply chain management and the appointment of credible companies are also necessary to resolve the decline in key government sectors.

The country's fruit export sector has reportedly lost billions of rands due to severe operational failures at the Port of Cape Town, forcing producers to ship fresh produce to alternative ports. This has resulted in a loss of business for local companies, affecting the GDP and employment opportunities.

In conclusion, the decline of South Africa's ports and metropolitan municipalities is a significant issue that requires urgent attention. Merit-based appointments, a Public-Private Partnership system, and proper vetting of people involved in supply chain management are necessary to resolve the decline in key government sectors.