Middle East war tests TSS Petroleum’s supply chain resilience

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South Africa’s industrial economy is powered by more than large mining houses, fuel suppliers and energy giants. Behind the scenes, small and medium-sized enterprises (SMEs) play a vital role in keeping supply chains moving and operations running.

In sectors such as mining, logistics and construction, even short disruptions to fuel or lubricant supplies can lead to costly downtime. Increasingly, agile SMEs are proving indispensable by responding quickly where larger, centralised supply systems often cannot.

In this episode of the Mzansi Business podcast, Faith Madoda, founder and CEO of TSS Petroleum Group, explains why SMEs should be viewed as strategic partners rather than just service providers.

TSS Petroleum Group operates as an authorised distributor of Puma Energy lubricants, supplying fuel and lubrication solutions to industrial and commercial clients across South Africa.

“In this industry, reliability is everything. If a site stops operating because fuel or lubricants are delayed, the cost is immediate. SMEs that can respond quickly are essential to keeping industry running,” says Madoda.

He says TSS Petroleum Group has built its business on responsiveness, consistent service and close client relationships.

These qualities, he argues, position SMEs as the vital “last-mile” link in industrial supply chains, adding that strengthening SMEs within supply chains is not a developmental aspiration but a productivity requirement.

“The other idea I’ve always had is to diversify and industrialise the local economy of Kuruman,” Madoda tells Moneyweb, referring to what he hopes to achieve in the Northern Cape, where his business is primarily based.

“If you check the IDC [Industrial Development Corporation] reports, they show that the Kuruman demarcation over the next decades will become a ghost town such as Carletonville. So my main concept is to make sure Kuruman is industrialised, such as Johannesburg.”

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In addition to facing local barriers like limited access to procurement opportunities, working capital constraints and restricted participation in long-term industrial contracts, Madoda says the ongoing political tensions in the Middle East present an extra set of challenges for businesses like his.

“There was a time when the price of diesel went up to R34 or R35 per litre, you had transporters reducing speeds from 80km to 70km or 50km per hour. It makes it difficult because consumption of fuel goes low and customers are no longer ordering as before and it’s obviously bad,” he explains

“Since the price went down, it has become a little better. We hope that in August the prices will be way better.”

As industries evolve and pressure on operational efficiency increases, Madoda says SMEs are likely to become even more central to how resilience is built and maintained.

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