State-owned business support organisation the National Empowerment Fund (NEF) has invested R31-million in road freight logistics provider Milkway Transport to expand its fleet to 18 trucks and strengthen its operational capacity.

This will enable it to serve its growing customer base in the logistics sector. The company is a 100% black-owned and 60% women-owned transport and logistics company based in Joubertina, in the Eastern Cape.

Milkway Transport has eight trucks, four of which were funded by the NEF, and it aims to expand its operations by ten additional trucks and trailers.

This will significantly reduce its reliance on subcontractors, and enhance its service delivery and profit margins, the NEF said in a statement.

The NEF investment will create 20 new jobs and help maintain 14 existing positions within Milkway Transport. This will contribute positively to the local economy while ensuring that more black-owned businesses can participate meaningfully in the logistics sector.

Milkway Transport began as a subcontractor to established logistics companies and, over eight years of successful trading, transitioned into direct contracts with major players in the industry, including Woodlands Dairy and Coca-Cola Beverages Southern Africa.

“This investment strengthens their operational capacity and also supports job creation and economic growth in the Eastern Cape,” says NEF iMbewu fund manager Eldene Govender.

“By enhancing Milkway's capacity to operate independently and expand its service offerings, the NEF is not only facilitating the growth of a successful logistics company but also contributing to the broader economic landscape of the Eastern Cape,” says NEF acting CEO Mziwabantu Dayimani.

“The investment in Milkway Transport is a testament to the NEF's commitment to supporting black-owned enterprises and promoting economic growth in rural areas,” he says.

The company was founded in 2016 by husband and wife Clayton and Leonie Damons. Clayton has experience in various sectors, including petroleum, logistics and local municipality roles.

Leoni has a strong administration background and has been instrumental in ensuring compliance, governance, managing drivers, and engagement with key stakeholders.

“We have grown Milkway from one truck to eight, while achieving significant yearly increases in performance and cumulative revenue growth of R28-million over the past three years,” she says.