Inside Africa

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How to start a logistics company in South Africa

February 18, 2026

Are you thinking about how to start a logistics company in South Africa? We’re here to guide you through the essentials, making entry into the industry easier than you imagined.

The logistics industry in South Africa plays a vital role in the country’s economy, influencing everything from manufacturing to farming to retail. The South African freight and logistics market is projected to grow to $30.56b by 2029.

This article will help you grasp the opportunities and challenges of starting a logistics company in South Africa.

Logistics industry in South Africa

South Africa’s logistics sector sits at the intersection of national economic performance, regional trade corridors, and the accelerating demands of digital commerce.

Accounting for an estimated 10–12% of GDP and underpinning key industries, from manufacturing to retail, logistics is both a barometer and driver of economic activity in the country.

Road freight alone moves more than 70% of all goods domestically, reflecting the sector’s fundamental role in sustaining commerce and facilitating international trade.

Market projections further underscore the commercial opportunity: the freight and logistics market is forecast to expand steadily, with some estimates placing its value above $15 billion in 2026, growing at a mid-single-digit compound annual growth rate (CAGR) over the coming five years.

Another broad industry outlook suggests the wider logistics ecosystem could reach upwards of $137 billion by 2030 as services, warehousing, and distribution scale with economic and e-commerce growth.

For entrepreneurs and investors, these dynamics point to a structurally significant industry with diverse niches, ranging from road freight and last-mile delivery to cold chain logistics and integrated supply chain services.

However, successfully entering this sector requires more than a business idea; it demands a comprehensive understanding of legal compliance, capital allocation, operational risk, and customer segmentation.

Types of logistics businesses

Here are some ways to start a logistics company in South Africa:

Launch a freight forwarding service, managing seamless cargo transport. You’ll handle bookings, schedules, and deliveries.
Set up a logistics centre to handle warehousing and inventory management.
Navigate complex customs processes as a customs broker, offering businesses clarity and expertise.
Venture into courier and parcel delivery for businesses and individual customers, ensuring goods reach their destinations swiftly.
Establish a cross-docking operation to optimise storage and directly transfer goods between incoming and outgoing transport.
Begin as a third-party logistics (3PL) provider, delivering integrated solutions from warehousing to transport tailored to each client’s unique requirements.
Get into cold chain logistics, focusing on transporting temperature-sensitive goods like medicines, food, and other perishables.
Develop a digital logistics platform, leveraging technology to simplify, connect, and enhance supply chain processes for shippers and carriers.

How to start a logistics company in South Africa

1. Understand the regulatory and legal framework

Before committing capital or entering the market, prospective founders must navigate South Africa’s regulatory environment, complex yet foundational for lawful operation.

Company registration and tax compliance

The first formal step is registering the business with the Companies and Intellectual Property Commission (CIPC).

The preferred legal structure for logistics ventures, especially those planning to scale or attract investment, is a private company (Pty Ltd), which provides liability protection and enhances credibility with clients and lenders.

After CIPC registration, companies must register with the South African Revenue Service (SARS) for income tax, and, where applicable, Value-Added Tax (VAT) and employee tax categories like PAYE and UIF.

A Tax Clearance Certificate from SARS is often mandatory to qualify for tenders or secure financing.

Operating permits and vehicle licenses

Transporting goods for profit requires an Operating Licence issued by the National Public Transport Regulator (NPTR) or relevant provincial office.

This licence authorises commercial freight movement and is distinct from basic vehicle registration.

Each commercial vehicle in the fleet must be registered and possess a valid licence disc and roadworthy certificate.

Drivers operating goods vehicles above specific weight thresholds must hold a Professional Driving Permit (PrDP) alongside the appropriate driver’s licence class.

Where cross-border services are planned, particularly to neighbouring SADC countries, entrepreneurs must obtain cross-border permits from the Cross-Border Road Transport Agency (C-BRTA).

Further, specialised cargo such as hazardous materials or refrigerated products may attract additional compliance requirements like Dangerous Goods Permits or health certificates.

Failure to secure proper licensing is not a procedural oversight; it is a legal violation that can result in vehicle impoundment, fines, and prosecution.

2. Define business model and market position

Logistics is not a monolith. Successful entrants must define a targeted value proposition within a chosen market segment, balancing demand with operational feasibility.

Freight and transport

Traditional freight hauling, long-haul and short-haul, remains central to logistics activity, particularly in industrial and commercial supply chains.

It requires significant capital for vehicle acquisition and maintenance but offers contract stability with large manufacturers and wholesalers.

Last-mile and e-commerce logistics

Rapid growth in online retail, driven by increased internet penetration and mobile commerce, has created demand for fast, reliable last-mile delivery services.

A dedicated segment of the market, e-commerce logistics technology alone is valued in the billions of dollars, reflecting expansion in consumer expectations for delivery speed and traceability.

Warehousing and value-added services

Beyond transport, logistics firms can expand into warehousing, inventory management, cold chain services, and integrated contract logistics, which supports clients with end-to-end solutions.

These segments require investment in facilities and technology but can command higher margins and deepen client relationships.

3. Capital requirements and financial planning

Starting a logistics company in South Africa is capital-intensive relative to many service businesses.

Key cost components include the procurement or leasing of vehicles, facility rentals for offices or warehouses, technology systems for tracking and management, permits and licences, insurance, and initial operating expenses including fuel and staffing.

A single-unit operation with a light commercial vehicle may begin with startup costs in the low hundreds of thousands of rand, while a multi-vehicle freight operation could require capital nearer to R700,000 or more, depending on scale and service complexity.

Detailed financial planning is essential.

Prospective founders should build a robust business plan that includes projected cash flows, fixed and variable costs, break-even analysis, and sensitivity scenarios, particularly around fuel prices, regulatory delays, or fluctuations in freight demand.

Presenting this to banks or investors improves credibility and fundability.

4. Operational infrastructure and technology investments

Efficient logistics operations hinge on reliable assets and technology.

Fleet management and tracking

Implementing GPS tracking, fleet telematics, and route optimization software enhances operational control and client transparency. Data-driven decision-making in logistics has been shown to improve efficiency, reducing fuel consumption, idle time, and delivery delays, by significant margins when effectively leveraged.

Warehousing and distribution facilities

Selecting strategic locations for depots near transport hubs, ports, major highways, and urban centers, reduces transit times and costs. In South Africa, cities like Durban, Johannesburg, and Cape Town serve as key logistics corridors for both domestic distribution and international trade.

5. Market entry, client acquisition, and partnerships

Securing contracts is foundational to revenue generation. Logistics startups must cultivate relationships with prospective clients through targeted business development efforts, including direct outreach to manufacturers, retailers, and e-commerce platforms.

Registering on procurement platforms and the Central Supplier Database (CSD) is often a prerequisite for government and large corporate contracts.

Strategic partnerships can accelerate growth. Collaborating with freight forwarders, warehousing providers, and larger carriers allows new entrants to offer broader service portfolios without owning all assets upfront.

6. Risk management and compliance culture

The logistics sector carries inherent operational risks. These include road safety, cargo theft, and regulatory non-compliance.

Comprehensive insurance coverage, including goods-in-transit, public liability, and vehicle insurance, is non-negotiable for risk mitigation and client assurance.

Furthermore, security remains a material concern in South Africa.

High rates of vehicle hijackings, particularly for last-mile delivery vans, have forced operators to invest in security protocols and risk management strategies that were less necessary in previous decades.

7. Building a skilled team

Assembling a capable team is crucial in the logistics industry. Skilled drivers, integral to your operations, must possess the appropriate licences to ensure legal and safe transport.

Beyond mere proficiency behind the wheel, seek out experienced and dependable drivers. Their expertise streamlines operations, strengthens the company’s reputation, and assures clients of reliable service.

Logistics environments, such as rough weather, can be hazardous, making specialised training essential. Drivers must be familiar with navigating local routes to take shortcuts, saving time and money.

They must be responsible with their communication and update their location and status efficiently.

8. Establishing client relationships

Building strong relationships with customers and suppliers is the key to sustainability and growth in any business. It might be tempting to sign up a client immediately, especially in the beginning, but you have to consider the long-term value and alignment with your company’s goals.

Now that cargo-centred technology is progressing, clients expect seamless online experiences and real-time tracking. It’s important to embrace user-friendly technology, even SMS notifications to track orders.

This makes your company transparent and gives your customers confidence in your services, thus cementing relationships and building a loyal customer base.

9. Managing operations efficiently

As logistics contains multiple moving parts, effectively managing your operations is crucial for sustainable growth. From inventory tracking to timely deliveries, every element must synchronise.

A minor delay in one delivery can ripple out, affecting countless other tasks. Efficient operations depend on speed and precision. It’s about getting the right package to the right door at the right time.

Use digital tools whenever possible. Inventory management software can help avoid stockouts or overstocks. Route optimisation tools ensure your drivers take the shortest, fastest paths, saving fuel and time.

The human element is equally important for your business to run smoothly. A motivated team, trained to handle unforeseen challenges and capable of pivoting when needed, ensures that the service quality remains consistent.

10. Marketing your logistics company

Due to the logistics industry’s fragmented nature and low barriers to entry, you need robust marketing strategies to grow in this space. Advertising plays a quintessential role. Billboards near transport hubs or radio ads can introduce your brand to potential clients.

Your online presence is crucial in today’s digital age. A well-designed website, supplemented with active social media channels, can attract clients and foster loyalty.

Through search engine optimization and pay-per-click campaigns, online marketing directs targeted traffic, making conversions easier.

Industry-specific approaches foster networking opportunities and brand awareness. The possibilities are endless. For instance, you could attend logistics conferences, organise webinars, or partner with complementary businesses.

Conclusion

Starting a logistics company in South Africa today demands strategic foresight, financial discipline, and rigorous compliance.

The industry’s growth trajectory, spanning freight services, e-commerce distribution, and integrated supply chain solutions, presents opportunities for well-positioned entrants.

Yet, its regulatory complexity and capital intensity raise the bar for execution quality.

Founders must ground their plans in market data and realistic financials, secure the full suite of legal licences, and adopt technology that supports efficient, transparent operations.

Coupled with disciplined risk management and client acquisition strategies, these elements constitute a strategic blueprint for building a logistics operation capable of navigating South Africa’s evolving economic and trade landscape.

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