South Africa’s planned national shipping line, Sasco, aims to reclaim maritime glory for the Rainbow Nation after a 25-year hiatus, joining Nigeria’s 291-vessel fleet and Liberia’s 378.3m-ton registry.
Seth Onyango, bird story agency
South Africa is reviving plans to establish a national shipping line, joining a growing list of African states investing in ports and maritime logistics to capture more value from global commerce.
The carrier, dubbed South African Shipping Company (Sasco), if realized, would be the country’s first state-owned carrier in more than 25 years, following the sale of its predecessor, Safmarine.
Safmarine, founded in 1946, served as South Africa’s flagship commercial shipping company until its acquisition by Denmark’s Maersk in 1999.
South Africa’s Department of Transport will front Sasco as a vessel-owning and chartering enterprise with a long-term mandate to serve national and intra-African trade corridors.
The company will begin by leasing ships before considering future asset ownership, according to people close to the project.
Local media reported that Sasco will work alongside existing logistics firms and port operators to re-anchor South Africa’s role in the region’s shipping chain.
The push for national carriers comes as African nations pour billions into port expansions and logistics networks, driven by the African Continental Free Trade Area (AfCFTA) and rising demand for intra-African trade.
Nigeria, the continent’s largest ship-owning country, has been expanding its fleet, while Liberia remains a dominant force in global shipping registries.
Figures from the United Nations trade agency UNCTAD rank Nigeria 33rd in the global fleet, with 291 vessels totaling 7.94 million deadweight tons, making it Africa’s largest ship-owning nation.
Liberia, meanwhile, has become the continent’s most prominent player in ship registration, surpassing Panama in 2022 as the world’s largest flag state by tonnage.
Liberia’s fleet grew 12.7% between 2022 and 2023, reaching 378.3 million deadweight tons, with 4,821 vessels under its flag.
Nigeria, thus, has a larger nationally owned fleet, while Liberia has a much bigger registered fleet due to its open registry that attracts foreign-owned vessels.
By value, however, Liberia has claimed 11.78% of the world’s registered fleet, second only to Panama’s 12.86%.
But its growth comes with environmental concerns. Liberia, Panama, and the Marshall Islands accounted for over a third of global shipping emissions in 2022, with Liberia-flagged vessels leading in CO₂ output among flag states.
With South Africa entering the fray, Nigeria’s dominance in ship ownership and Liberia’s growing influence in registration signal a shift in Africa’s maritime landscape, strengthening the continent’s role in global trade.
Kenya and Ghana are also exploring ways to bolster their maritime presence, recognizing the strategic value of controlling their own shipping routes.
Of Africa’s 38 coastal and island states, only a handful operate national carriers, with much of Africa’s seaborne cargo still moved by foreign-owned vessels.
According to the African Union and UNCTAD, over 90% of Africa’s imports and exports are transported by sea, yet the continent captures less than 5% of global maritime freight revenue.
South Africa’s initiative follows a wave of investment in port and shipping assets across the continent.
In 2022, Sudan signed a US$6 billion agreement to develop Abu Amama port and an economic zone along the Red Sea, aiming to strengthen trade corridors and boost exports through modern infrastructure.
However, Sudan canceled the deal in 2024, citing Emirati support for the Rapid Support Forces (RSF), a rebel paramilitary group.
Ghana has also expanded its port capacity, commissioning four new berths at Tema Port in partnership with Meridian Port Services, a consortium that includes APM Terminals and Bolloré Africa Logistics.
The US$1.5 billion expansion was completed in 2021, and Ghana’s government has since hinted at reintroducing a national line to boost control over export logistics, especially for cocoa and minerals.
“There’s a growing recognition that without national shipping capacity, countries lose pricing power and logistical flexibility,” said Edwin Omuga, a Kisumu-based maritime economist. “Besides the vessel, it’s about who controls the scheduling, the port calls, and the trade priorities.”
Africa’s ports are undergoing rapid transformation, fueled by foreign investment and regional trade agreements. The AfCFTA, which aims to unify Africa’s markets, is expected to increase intra-African freight by 28% and maritime demand by 62%, according to UNCTAD.
Currently, 48 states have ratified the AfCFTA, which was operationalized in 2019. Trade under the agreement officially began in January 2021.
In East Africa, competition is intensifying as ports vie for market share. Mombasa, traditionally dominant, faces challenges from newer facilities such as the Port of Lamu in Kenya and Berbera Port in Somaliland.
The UAE-backed expansion of Berbera has created a lucrative trade corridor to Ethiopia, while Chinese investments in Bagamoyo, Tanzania, aim to establish a major regional hub.
In 2021, Dubai-based DP World invested $442 million to expand Berbera Port, securing a 30-year concession to manage the facility.
The project included a new deep-water quay, modern cranes, and a free trade zone aimed at attracting businesses and boosting regional commerce.
With improved capacity and logistics, Berbera is positioning itself as a key maritime hub for the Horn of Africa, particularly for Ethiopian transit cargo.
In South Africa, Durban, the busiest container port in sub-Saharan Africa, is undergoing modernization, with plans to increase capacity and improve efficiency. The government’s renewed focus on shipping aligns with broader efforts to integrate logistics networks and reduce dependency on foreign carriers.
Kenya, meanwhile, has been planning to revive a national shipping entity, although concerns about high operational costs have forced the country to put the plans on ice.
Meanwhile, Djibouti and Egypt continue to ramp up maritime investments. Djibouti has positioned itself as a key node in China’s Belt and Road Initiative, developing multiple ports and dry docks with Chinese financing.
Egypt, through the Suez Canal Economic Zone, is expanding its Red Sea port capacity, with investments from Hutchison Ports and DP World, targeting transshipment and regional logistics.
According to Omuga, the rationale behind national shipping carriers extends beyond economics, stating governments see them as tools for security, resilience, and industrial policy.
In 2022, when global container backlogs disrupted trade flows, African exporters of perishables and minerals were among the hardest hit, spurring renewed interest in controlling freight availability. Countries with no national lines had to wait in line behind larger markets for vessel space.
Ship ownership also dovetails with ambitions in shipbuilding and repair. South Africa has said Sasco may eventually source vessels from local yards, depending on capital outlay and capacity.
Nigeria is exploring shipyard revitalisation in Lagos and Port Harcourt, while Senegal has partnered with French companies to develop a ship repair hub in Dakar.
Yet building a viable national fleet is expensive and fraught with historical failures. Most of Africa’s earlier carriers collapsed due to mismanagement, graft, and unsustainable subsidies.
South Africa’s Sasco, for example, awaits legislative backing and clarity on funding sources. Regional cooperation also lags. The AfCFTA could benefit from integrated maritime strategies, but national agendas have so far dominated.
Even so, momentum is seen to be building. As African countries seek to industrialise and move up value chains, control over transport logistics is becoming central. A national shipping carrier, once seen as a relic, is re-emerging as a strategic asset.
bird story agency