South Africa's Logistics Bill Hits R1.16 Trillion by 2026

South Africa's national logistics bill is projected to exceed R1.16 trillion in 2026, representing 14.6% of GDP and the highest share in more than two decades. Transport expenditure accounts for nearly 80% of the projected increase from 2025, reaching approximately R683 billion and constituting 59% of total logistics spending. The State of Logistics 2026 report identifies significant inefficiencies that could be eliminated through better modal choices, improved infrastructure reliability, and optimized capacity utilization.

A critical bright spot in the report is the recovery of freight rail volumes, which rose from 149.5 million tonnes in 2022-23 to 167.9 million tonnes in 2025-26, with the economic cost of rail underperformance declining from R410.7 billion in 2022 to R180.8 billion in 2025. However, continued improvements depend on reliable services and competitive pricing that encourages modal shift away from congested road networks. The report's modeling suggests that implementing three key priorities (optimal modal allocation, improved transport capacity utilization, and operational efficiency gains) could reduce logistics costs to 12.7% of GDP by 2026, potentially saving R149.3 billion annually and R667.5 billion over five years.

With freight demand forecast to rise from 790 million tonnes in 2024 to over one billion tonnes by 2055, strategic investment in these areas becomes increasingly urgent for South Africa's economic competitiveness.