South Africa’s maritime economy and its potential for job creation is the focus in this edition of the Business Day Spotlight.
Host Mudiwa Gavaza is joined by Sobantu Tilayi, CEO of African Ocean Careers.
African Ocean Careers aims to address South Africa’s high unemployment rate by training youth for international seafaring roles.
Training a seafarer costs about R625,000 beyond their university degree. However, the rewards are high; a captain can earn up to $12,500 (about R208,000) per month tax-free if they work abroad.
Tilayi says South Africa occupies a vital strategic position along global shipping lanes, particularly when conflicts in the Middle East threaten passages such as the Suez Canal.
When these primary lanes are compromised, world shipping traffic is forced around the South African coastline, re-establishing the country’s historic role as a critical “refreshment station” for vessels travelling between the East and West.
While the infrastructure is robust, Tilayi notes South Africans currently play an insignificant role in the global shipping business.
Of the thousands of ships visiting South African ports, only about four are South African-owned.
Much of the high-value economic activity, such as maritime insurance and legal arbitration, is offshored to markets such as London, leaving South Africa with only “incidental work”.
To capture more value, Tilayi argues South Africa must focus on the entire logistics value chain, moving beyond simple port operations.
The discussion details how South Africa can play a greater role in global maritime, job opportunities for South Africans in the industry and the structure of the industry.
There is a global fleet of about 70,000 ships supported by 1.9-million seafarers, with a current shortage of about 158,000 officers.
African Ocean Careers provides a specialised bridging course for graduates from universities including the Durban University of Technology, Cape Peninsula University of Technology and Nelson Mandela University to prepare them for international standards.
Join the discussion:
Producer: Demi Buzo
Business Day Spotlight is an Arena Podcasts Production.
For more episodes, subscribe to Simplecast
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.