Big investment… and big probes
SOUTH AFRICA’S state-owned logistics company Transnet (#28), its freight rail business (#55) and its ports company (#178) are among the biggest logistics companies by turnover on the continent. They have benefited from a governmentled investment drive that plans to pour $26bn into the companies. “At Transnet, we’ve gone through a period of quite extensive investment in infrastructure to really rehabilitate, renew and refurbish our ports and rail infrastructure, primarily to make sure that we can continue to support our existing business,” Karl Xhanti Socikwa, CEO of Transnet Port Terminals, tells The Africa Report. The government seconded Transnet chief executive Brian Molefe to struggling electricity company Eskom in early 2016, but Molefe resigned in November after the public protector released a report about the influence of the Gupta family on the state. Under the leadership of current chief executive Siyabonga Gama, Transnet faces investigations into previous contracts linked to the Gupta family, including the public enterprise’s relationship with a company called Homix.