Cautious investor sentiment and sustained cost pressures continue to shape technology adoption in South Africa’s materials-handling sector, with safety, affordability and asset life extension taking precedence over large-scale automation rollouts, equipment provider Shumani Industrial Equipment MD Victor Nemukula says.

While automation, Internet-of-Things (IoT) connectivity and AI are increasingly embedded in global materials-handling solutions, uptake in South Africa has been slower than anticipated. In this regard, Nemukula notes that many local operators remain reluctant to move away from established practices, particularly where safety and reliability are perceived to be well managed under conventional operating models.

“There has not been a large adoption of automation in the South African market so far as companies prefer the methods that they’re familiar with; ones that they believe still work. The major emphasis is still very much on safety,” he says.

Shumani has nonetheless made AI-driven fleet management systems available to customers, enabling improved monitoring of equipment use, maintenance requirements and operator behaviour.

These technologies can deliver measurable gains in productivity and lower cost-per-tonne handled, but Nemukula says broader adoption is likely to be linked to improved economic outlook.

Cost Implication, Circularity Imperative

Cost sensitivity has become a defining feature of the materials-handling market over the past 12 to 18 months, with capital budgets under sustained pressure. As a result, demand has shifted noticeably towards refurbished equipment, rentals and solutions that extend the operational life of existing fleets, particularly among smaller customers.

“Most small customers prefer to procure used or refurbished equipment to save on costs, as the market is still under a lot of pressure,” Nemukula says.

In response, Shumani has expanded its refurbishment and life-cycle support offerings, thereby allowing clients to defer large capital expenditure while maintaining operational continuity. This approach also aligns with the growing interest in circular economy practices within logistics and warehousing environments.

Circularity, Nemukula explains, is being driven less by regulation and more by the need to reduce the total cost of ownership. Shumani supports this through component reuse and selective upgrades, particularly in relation to batteries, where reused or newer-generation units are installed to extend equipment life and improve efficiency.

Electrification trends are also gaining traction, albeit unevenly and Nemukula says larger customers are leading the migration to electric forklifts, with lithium-ion batteries increasingly favoured for high-throughput warehouse applications.

Although lithium-ion systems carry higher upfront costs, their lower operating and maintenance costs, longer lifespan and environmental benefits strengthen their business case, especially for larger fleets.

Smaller operators, however, remain more cautious, often balancing environmental compliance aspirations against immediate affordability concerns. From a regional perspective, Shumani continues to prioritise the domestic market, which Nemukula describes as the most developed materials-handling environment in sub-Saharan Africa.

While shifting trade routes, port inefficiencies and rail constraints are influencing freight dynamics, many African markets remain too small to support a broad continental expansion strategy.

As a result, Shumani is focused on consolidating its competitive position in South Africa, while monitoring selective opportunities elsewhere on the continent as infrastructure investment and industrial activity evolve.

“For now, resilience, cost efficiency and incremental technology adoption remain central to navigating a challenging operating environment,” Nemukula concludes