Trek voor!
Sub-Saharan Africa’s most productive nation has registered some increasing security risks of late. TT Club and BSI have analysed the situation and made some recommendations.
The British international freight transport insurer TT Club and the BSI, the British Standards Institute that is also a business improvement company, published a joint report recently entitled ‘Freight Crime in South African Supply Chains’. The document combines the threat and intelligence data and analysis contained in the BSI’s ‘Supply Chain Risk Exposure Evaluation Network’ (Screen) as well as in TT Club’s insurance risk management and loss prevention insights.
South Africa is considered one of the strongest economies in Africa, together with Nigeria and Egypt. Its economy is also ranked first in Africa for cargo theft, however, according to the study. Frequently entire truck and trailer combinations are stolen in the country.
"2020 left the freight sector in a vulnerable situation," the report says, with the outbreak of the Covid-19 pandemic, lockdowns and the concomitant economic decline. Furthermore, cross-border truck congestion and the slower clearance of consignments created secondary disruption that left cargo even more susceptible to theft, as well as to violence in general.
David Fairnie, BSI’s principal consultant for supply chain security, added that he believes that firms have good possibilities of avoiding risks. "Taking the suggested preventive measures, including screening employees, implementing security management systems, and securing parking depots, will help organisations to develop more secure and more resilient supply chains." Other sources also underline the effectivity of such an approach.
Old and new risks
South Africa is considered a large and very dynamic market for security technology. Cybercrime has also reached South Africa in the meantime, of course. Losses incurred on account of cyber attacks amount to approximately USD 200 million a year, also in 2019, according to the South African government. 55% of the gross losses incurred by banks in South Africa is said to be down to cybercrime, according to one study. The risks that exist for the flow of money also apply to the overall flow of goods.
Mike Yarwood, TT Club’s managing director for loss-prevention activities, gave his clients this advice. "As cargo theft continues to have a massive impact on business operations and disrupts supply chains in South Africa as well as elsewhere, it’s absolutely vital that companies stay on top of the potential threats and risks involved. A broad awareness of all security factors involved, as well as proactive risk management actions, are all essential steps in creating a low-risk supply chain."
The report highlights the impact on the supply chain and points the way to measures that can reverse the trend.
