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Gauteng takes the wheel: Driving Africa’s NEV future

South Africa’s shift to green mobility is no longer a distant idea, it is now a commercial necessity, and the economic heartland of the country must take the lead in embracing New Energy Vehicles as a core economic sector for the country – and the rest of Africa, writes Lebogang Maile, Gauteng MEC for Finance and Economic Development. Gauteng is stepping up to lead South Africa and Africa into the new-energy vehicle (NEV) era. The province, already the country’s economic and industrial centre, is positioning itself as the continent’s NEV hub. The province hosted its inaugural NEV Summit on 22–23 October 2025, during the country’s Transport Month, under the auspices of the Gauteng Growth and Development Agency, along with the Automotive Industry Development Centre (AIDC) and the Tshwane Automotive Special Economic Zone (TASEZ). South Africa’s shift to green mobility is no longer a distant idea, it is now a commercial necessity. Gauteng is determined to lead South Africa’s transition to electric and low-carbon mobility. The South African automotive industry is facing a tough operating environment, heightened by the imposition of a unilateral 30% reciprocal trade tariff by the government of the United States, which has consistently been South Africa’s second-largest trading partner and key export destination for South African-manufactured vehicles. The sector is particularly vulnerable to the 25% sectoral tariff imposed under Section 232 of the United States Trade Expansion Act of 1962, which specifically targets automotive exports. In addition, global markets, particularly the European Union, are tightening carbon regulations. For South Africa to keep exporting vehicles and stay competitive, it must move fast to build an industry that produces low- and zero-emission cars. Laying the foundation The transition is backed by strong policy frameworks. The South African Automotive Master Plan 2035 (SAAM 2035) sets clear goals for increasing local content, boosting exports, and creating inclusive growth. The government’s White Paper on electric vehicles, approved at the end of 2023, provides a roadmap for building the NEV ecosystem from production and charging infrastructure to skills development and consumer incentives. Although the paper references electric vehicles, South Africa must take into account other green initiatives, such as hydrogen and battery. The policy direction is clear – our job is to make sure Gauteng becomes the first mover. The NEV transition is about jobs, skills, and industrialisation, not just greener cars. We are ready to lead Africa in this journey. Why Gauteng? South Africa’s economic hub has all the right ingredients: skilled workers, advanced manufacturing infrastructure, financial and logistics networks, and a strong automotive heritage. Ford, based in the City of Tshwane, has been in South Africa for over a century. Gauteng’s existing automotive value chain makes it the natural home for Africa’s NEV future. The province already hosts major original equipment manufacturers like BMW, Ford, and Nissan, and supplier networks that can pivot to battery, electronics, and component manufacturing. We already have the backbone, from vehicle assemblers to tiered suppliers. What we are doing now is aligning that value chain with new technologies, from battery assembly to software integration. The transition is not just about attracting investment; it’s about future-proofing Gauteng’s manufacturing economy. Turning policy into factories Gauteng is now focused on turning national policy into tangible projects. The Automotive Investment Scheme (AIS) and EV production incentives announced by the Department of Trade, Industry and Competition (the dtic), including a 150% investment allowance for qualifying projects, are key tools to make that happen. We are working closely with the dtic and industry stakeholders to streamline approvals and remove red tape. Investors do not want promises; they want certainty. Gauteng is offering that – a clear pathway from policy to plant. But we are also well aware of the challenges we face, from electricity reliability and logistics to the high costs of new technologies. One of the key projects we have put in place to overcome these is the creation of a dedicated automotive hub in the City of Tshwane, with stable power, fast-tracked permitting, and shared testing and recycling facilities to lower entry barriers for manufacturers. Building demand and inclusion A vibrant NEV industry also needs a domestic market, and Gauteng is exploring ways to stimulate demand through public fleet electrification, taxi modernisation programmes, and municipal procurement. Demand creation will be critical to attracting more investors. OEMs and suppliers want to see that South Africa is serious about NEVs – that there is a real market for these vehicles. If we in government lead by example through fleet conversion, others will follow. Gauteng has the opportunity to set that example for the rest of the continent. Beyond manufacturing, Gauteng’s NEV strategy emphasises skills development and inclusion. The transition is being designed to create opportunities for black-owned medium, small, and micro enterprises, youth, and women entrepreneurs in new parts of the value chain, from charging infrastructure to digital mobility services. A turning point for the economy The upcoming NEV Summit is expected to produce a clear action plan: identifying priority sites, announcing anchor investors, setting timelines for disbursing incentives, and mapping out power and logistics upgrades. This summit was not just about speeches; it was about signatures. We want commitments, timelines, and projects that will create jobs and secure Gauteng’s place at the centre of Africa’s new energy future. If Gauteng can convert its strategic intent into action, the province will not only revitalise South Africa’s automotive manufacturing base but also anchor the continent’s NEV revolution. The race to lead Africa’s green mobility future has begun, and Gauteng plans to be first across the line.

From policy to action: Now is the time for South Africa to embrace new energy vehicles

Thought leaders / By Tasez

South Africa must move from policy to action as a matter of urgency, aligning incentives, infrastructure, skills, and industrial coordination around new energy vehicles, writes the CEO of Tshwane Automotive Special Economic Zone, Dr Bheka Zulu. South Africa’s automotive industry stands at a turning point. The global race toward low- and zero-emission mobility is accelerating, and for a country whose automotive exports hinge on access to the European market, embracing new energy vehicles (NEVs) is no longer optional, it has become an industrial necessity. The Electric Vehicle (EV) White Paper and the South African Automotive Master Plan 2035 (SAAM) together lay a strong policy and strategic foundation. The challenge now is moving from intent to implementation. The country has a clear opportunity to build an inclusive, competitive, and sustainable automotive industry powered by innovation, ready for a net-zero world. Transformation is a must The global automotive landscape is undergoing a profound transformation, driven by the urgency to reduce carbon emissions and achieve net-zero goals. The European Union’s carbon neutrality policies are among the most influential in this shift, setting strict timelines for phasing out internal combustion engine (ICE) vehicles and promoting zero- and low emission alternatives. The EU aims to be climate-neutral by 2050. The objective is to ensure an economy with net-zero greenhouse emissions. For South Africa, this presents both a challenge and an opportunity. The EU remains South Africa’s largest export market for vehicles, accounting for the bulk of automotive exports. A significant 68,7% of light vehicle production was exported in 2024, with three out of every four cars headed to Europe. This means that the EU’s green regulations will directly determine South Africa’s ability to continue trading competitively in this critical sector. Vehicles built in Gauteng and other parts of the country will increasingly need to meet low- or zero-emission standards to remain eligible for export. Transitioning now is not optional, it is essential. Early investment in NEV production, local battery manufacturing, and supporting infrastructure such as charging networks will safeguard South Africa’s market access, maintain its global competitiveness, and create a foundation for long-term industrial sustainability. Policy meets opportunity The EV White Paper charts a managed transition from internal combustion engines to cleaner technologies, ensuring decarbonisation does not lead to deindustrialisation. It sets out steps to localise EV production, develop charging infrastructure, and build skills for the future. The White Paper allows for a managed transition, setting out a number of processes: It has identified 10 actions required to build an EV production ecosystem, including the beneficiation of critical minerals, battery reuse and refurbishment, regulatory alignment, and incentives for localisation. Complementing it, the South African Automotive Master Plan (SAAM 2035) envisions South Africa increasing local content in vehicle manufacturing, expanding exports, and doubling employment by 2035. SAAM 2035 sets out six focus areas: optimising the local market, developing the regional market, localisation, infrastructure development, industry transformation, and technology a skills development. Targets include: Together, the EV White Paper and SAAM 2035 frame a just, inclusive transition that can preserve and grow the country’s industrial base. Driving implementation Turning these policies into tangible outcomes depends on strong institutions. In Gauteng, the Gauteng Growth and Development Agency (GGDA), its subsidiary the Automotive Industry Development Centre (AIDC), and the Tshwane Automotive Special Economic Zone (TASEZ) are taking the lead. TASEZ, Africa’s first automotive city, is positioning itself as a hub for future-focused investment, where manufacturers and suppliers can plug into purpose-built infrastructure, training, and incentives. The AIDC, through its learning centres and supplier parks, is aligning skills and enterprise development with EV technologies. Together, these institutions are turning national ambition into provincial action. South Africa must act quickly to overcome power constraints, develop a local battery value chain, and align incentives to attract NEV and component investment. Global markets are already shifting and delays could cost South Africa export access, investor confidence, and thousands of jobs. A call to lead Africa’s NEV revolution The upcoming 2025 NEV Summit, hosted by GGDA, AIDC, and TASEZ on 22-23 October 2025 at the Gallagher Convention Centre, represents the next phase: uniting government, industry, and investors to accelerate implementation. From policy to action, South Africa’s NEV future depends on decisive execution.

Future of auto industry at centre of national discourse – MEC Maile

News / By Tasez

By Mandla Mpangase The discussion on the importance of new energy vehicles is taking place at a critical time in South Africa, where the future of the automotive industry is at the centre of national discourse, Gauteng MEC for Economic Development and Finance Lebogang Maile told the New Energy Vehicles Summit in Midrand today. The summit comes at a time when Gauteng is positioning itself as the automotive industrial hub for Africa, leveraging its existing automotive base, advanced logistics, and skills ecosystem. Critical to this positioning is the need to embrace the revolution that is the new energy vehicles (NEVs). Gauteng is determined to lead South Africa’s transition to electric and low-carbon mobility in line with global decarbonisation imperatives and the South African Automotive Masterplan 2035. “The South African automotive industry is facing a tough operating environment, heightened by the imposition of a unilateral 30% reciprocal trade tariff by the government of the United States, which has consistently been South Africa’s second-largest trading partner and key export destination for South African-manufactured vehicles,” Maile said, adding that on the manufacturing side, Original Equipment Manufacturers (OEMs) also face mounting challenges. South Africa’s automotive sector is particularly vulnerable to the 25% sectoral tariff imposed under Section 232 of the United States Trade Expansion Act of 1962, which specifically targets automotive exports. Key sector “The South African automotive industry is a cornerstone of the economy and contributes 22.6% to total domestic manufacturing output. It also directly supports over 110 000 formal sector jobs – a significant number in an economy that is battling with the creation of sustainable employment.” The MEC noted that a few months ago, naamsa (the Automotive Business Council) noted that the tariffs, and the broader uncertainty in our trade relations with the United States strike at the heart of South Africa’s industrialisation agenda and threaten future investment in high-value manufacturing. Mercedes Benz in East London, for example, exports at least 90% of its vehicles to the United States, making evident the impact of such an uncertain economic climate on the East London Special Economic Zone. “Tariffs have had a severe impact on South Africa’s automotive industry, leading to a sharp drop in exports to the United States, job losses, company closures, and reduced GDP contribution of the automotive sector.” Vehicle exports to the United States have fallen drastically, with one report noting an 82% drop in the first half of 2025 compared to the previous year. Challenges “The industry has also experienced layoffs and job losses, with thousands of positions under threat due to companies losing contracts and reducing production,” the MEC said, adding that at least 12 company closures have been linked to these pressures, impacting the component manufacturing sector and its over 80 000 employees. Communities like those in East London, and the broader Eastern Cape, which are heavily dependent on the automotive sector, are at risk of economic destabilisation. Beyond job losses, the National Union of Metal Workers of South Africa (NUMSA) has also highlighted the risk of short-time that has been introduced at 26 companies in the Eastern Cape – many based in Gqeberha. “Various economists have identified three structural challenges that are currently confronting the automotive industry, specifically, navigating South Africa’s exposure to tariff barriers in the United States, as outlined, the danger of dumping, and adapting to the global shift towards new energy vehicles,” said Maile. However, he noted, while these are real challenges with far-reaching implications, critical interventions can transform them into opportunities – particularly in relation to new energy vehicles. “New energy vehicles are crucial for South Africa’s future as they offer significant economic and environmental benefits, including reducing greenhouse gas emissions and lowering fuel costs, while supporting industrial growth and job creation through local manufacturing and infrastructure development.” New energy vehicles produce significantly fewer greenhouse gases and pollutants compared to internal combustion engine vehicles, which can help in combating urban air pollution and climate change. The place of new energy vehicles is also clear, with their lower operating costs and potential for industrial growth, the MEC said: “Electricity is cheaper than petrol and diesel, and energy vehicles have fewer moving parts, reducing overall maintenance costs.” Additionally, as South Africa’s automotive industry contributes over 4% to GDP and 12.5% to exports, transitioning to new energy vehicles can safeguard this sector’s global competitiveness, especially with European Union bans on internal combustion engine vehicles by 2035. New energy vehicles are also key to a Just Energy Transition, reducing reliance on fossil fuels, which can help reduce reliance on imported fossil fuels that are increasingly subject to price volatility. Recognising potential NEVs could position South Africa to become a hub for regional battery production and new energy vehicle technology. Recognising this potential, the national government has developed policies covering for NEV production, infrastructure, and skills development. “As a result of this intervention, a 150% tax rebate for new energy vehicle production starts in March 2026, with over R1-billion having recently been allocated to support local new energy vehicle and battery manufacturing.” The MEC said that such investments in local battery production address the salient challenge that new energy vehicles pose – mainly that they are significantly more expensive than internal combustion energy vehicles due to import duties and more importantly, a lack of local battery production. A strategy is currently being finalised to secure supply chains for critical minerals like cobalt, lithium, and nickel, which are essential for battery production. “This is part of a larger plan to beneficiate these materials locally instead of exporting raw forms.” This is in alignment with the Gauteng’s mineral beneficiation strategy that focuses on adding value to raw materials by transforming them into higher-value products, with a key role in refining precious and base metals. Developing local battery manufacturing capacity for NEVs, and mineral beneficiation broadly, will address economic diversification, ensuring that the province moves beyond raw material extraction to creating a more value-added mineral economy and to retain more wealth within the province and the country broadly.

Gauteng gears up for green revolution as New Energy Vehicle Summit kicks off

News / By Tasez

By Mandla Mpangase The inaugural New Energy Vehicle Summit is taking place this week in Gauteng, drawing attention to the importance and urgency of moving to green mobility within South Africa’s automotive industry. The landmark event, hosted by the Gauteng Growth and Development Agency (GGDA), the Automotive Industry Development Centre (AIDC), and the Tshwane Automotive Special Economic Zone (TASEZ), will assess the progress of the transition to new energy vehicles (NEVs), investigate possible partnerships, and plan practical strategies to accelerate the creation of a competitive local NEV ecosystem. Speaking ahead of the summit on Channel Africa’s Africa Update with Lulu Gaboo, the CEO of TASEZ, Dr Bheka Zulu, said the gathering marks more than just summit. “It’s a statement that Gauteng, as the heart of South Africa’s automotive sector, is ready to lead Africa’s technological shift,” said Dr Zulu. “With more than 60% of the country’s vehicles produced in this province, we are asserting South Africa’s leadership in the continent’s new energy vehicle transition.” Zulu said South Africa is no longer a “passenger” in the global race toward electric mobility. Since the release of the EV White Paper in 2023, the focus has been on positioning the country for global competitiveness through research, innovation, and partnerships. “We’re gearing up for the race on the global EV track,” he noted. “Our goal is to attract international investors, harmonise trade standards across African markets, and promote regional value chains that make South Africa the hub for sub-assemblies and NEV components.” Dr Zulu emphasised that the NEV Summit, taking place at the Gallagher Convention Centre on 22-23 October, will focus on building consensus between industry, labour, and government to develop a balanced roadmap for transformation, one that prioritises both ambition and pragmatism. Policy alignment Asked about policy readiness, Dr Zulu said South Africa already has the right frameworks in place, but faster implementation and targeted incentives are needed. “The road is paved; now we need the green light to move faster,” he said. “We must streamline tax incentives and develop charging infrastructure that supports local manufacturing and adoption.” The NEV shift represents a major opportunity for deepening local supply chains, creating high-value jobs, and transforming South Africa into the main exporter of NEV components across the continent. The South African Automotive Masterplan 2035 (SAAM 2035) is a key enabler of the transition, with its goals to increase local content from 40% to 60% and to double employment in the sector. It is supported by the Electric Vehicles White Paper, that was published at the end of 2023. “This is not just about swapping the engine for a battery,” he said. “It’s about creating new high-value jobs and ensuring that no one is left behind, including workers, black industrialists, and small suppliers.” At the heart of the TASEZ strategy is inclusivity, with initiatives to upskill the existing workforce, mentor small component manufacturers, and facilitate partnerships between local suppliers and global OEMs. Collaboration is vital Dr Zulu stressed that while Original Equipment Manufacturers (OEMs) like Ford play a critical role, the NEV opportunity is open to new entrants and innovators. “The NEV space is for everyone,” he said. “We want to see new black industrialists and emerging OEMs entering the field. This is the transformation we’ve been driving.” Although reliable energy and charging infrastructure remain a challenge, partnerships are being developed to roll out a national charging network and invest in renewable solutions. “We are identifying key sites and collaborating with private partners to ensure charging infrastructure keeps pace with NEV adoption,” he said. With the European Union’s zero-emission and carbon border adjustment policies set to take effect by 2035, dr Zulu said South Africa must align its timelines and environmental standards with international expectations. “We’re adapting our manufacturing processes to reduce coal-based energy use and increase solar, gas, and hydrogen integration,” he said. “Our ambition is to match the EU’s climate neutrality goals and maintain export competitiveness.” Looking ahead to 2035, Dr Zulu concluded: “We want NEVs to form a significant part of local production, deepen component manufacturing, and make South Africa the hub of NEV exports to Africa and beyond,” he said. “Most importantly, we want this transition to create jobs, skills, and shared prosperity.”

South Africa’s auto industry holds advantage in Africa, Says Minister Tau

News / By Tasez

By Mandla Mpangase South Africa’s automotive industry continues to anchor the country’s manufacturing capacity and offers a “unique competitive advantage” on the African continent, despite facing significant global and domestic headwinds. This was the message from Minister of Trade, Industry and Competition, Parks Tau, addressing delegates at South Africa Auto Week 2025, hosted by naamsa (The Automotive Business Council) in Gqeberha from 1–3 October. Tau said that while the sector has weathered one of its most challenging periods over the past nine months, it remains one of the cornerstones of South Africa’s economy. “In 2024, the industry contributed 5.2% to GDP and accounted for 22.6% of total manufacturing output. It provides nearly 500 000 formal jobs across assembly, components, retail and services, while supporting around one million livelihoods,” he told delegates. New markets and partnerships Tau highlighted fresh opportunities emerging on the continent and beyond. Following recent engagements in Saudi Arabia and Nigeria, he said South African component manufacturers could partner with counterparts in those countries to expand their footprint. “We’re prepared to allow African investors to partner with our local companies and create manufacturing capacity in those markets. It is an opportunity we must take advantage of,” Tau explained. At the same time, global OEMs operating in South Africa have committed to transitioning from semi-knockdown to complete knockdown production, deepening local manufacturing capacity. “Our duty is to work with these companies to ensure they become part of the local production base, taking advantage of South Africa’s skills and positioning the country as a platform for access to African markets,” Tau added. Transition to new energy vehicles The minister stressed that the industry is at a critical “inflection point” as global markets accelerate their shift away from fossil fuel vehicles towards new energy vehicles (NEVs). With major export destinations such as the European Union and the United Kingdom moving to ban new petrol and diesel vehicles from 2035, South Africa must adapt or risk losing market share. Already, the shift is underway: in 2024, South Africa recorded 15 600 new energy vehicle sales, representing 3% of the local market. The sector also attracted R12-billion in new investment for NEV-related manufacturing. Government has introduced measures to support this transition, including a 50% tax deduction for qualified NEV investments, partnerships with universities and research institutions, and strategies to localise production of critical inputs such as battery materials. “This is not just an industrial project,” Tau said. “It is about positioning South Africa at the heart of the global mobility revolution, not as a taker of technology, but as a maker. If we succeed, we will safeguard exports, create jobs, and place Africa at the forefront of clean mobility solutions.” Africa as an engine of growth Africa has emerged as a key market, with the continent becoming South Africa’s second-largest export destination in 2024. Vehicle exports into Africa grew by 12.4% year-on-year to R48.1-billion. The African Continental Free Trade Area (AfCFTA) is expected to further unlock opportunities, from reducing logistics costs to enabling vehicle assembly across the continent. Beyond vehicles, Tau noted, it could also drive mineral beneficiation, particularly for critical minerals such as cobalt, graphite, and lithium essential for the NEV transition. “Together, Africa can build a battery industry that reduces dependence on imports and positions the continent as a hub for clean mobility,” he said, adding that South Africa is leading the development of an African automotive hub that could align policies and attract investment. In closing, Tau emphasised that South Africa’s auto sector, with its industrial depth and mineral wealth, is uniquely positioned to lead Africa’s role in the global energy transition. “The automotive sector has been at the heart of our industrial story for more than a century. Today, it stands at a defining moment. “Its transition to new energy vehicles will define our relevance in a low-carbon world, while its integration into Africa’s free trade area positions us as leaders on the continent,” he said. “If we seize this opportunity, we will not only secure South Africa’s competitiveness but also place Africa at the forefront of the global mobility revolution.”

Auto manufacturing leaders urge action on investment

News / By Tasez

By Mandla Mpangase South Africa’s automotive sector, a key industry for the country’s economy, faces losing ground globally unless decisive action is taken to attract and retain new investment. This was the central message of a high-level panel discussion at South African Auto Week 2025 in Gqeberha from 1 October 2025. This year’s South Africa Auto Week, hosted by the Automotive Business Council (naamsa), is being held under the theme “Reimagining the future together – Cultivating inclusive growth and shared prosperity”. The panel, moderated by Financial Mail and Business Day editor-at-large David Furlonger tackled the topic “Salient ingredients to attract new investment for auto manufacturing in South Africa”. Furlonger opened the discussion with a stark reminder: while global markets are making inroads with new energy vehicles, South Africa lags behind. “We are very good at coming up with plans, but not so great at implementing them,” he warned. “Now we need action.” Policy and incentives The director of advanced manufacturing at Invest SA, an agency of the Department of Trade, Industry and Competition, Rashmee Ragaven, outlined a suite of government programmes, including the Automotive Production and Development Programme and the Automotive Investment Scheme, that have been designed to support manufacturers Ragaven stressed the importance of partnerships between government and industry, and the role of free trade agreements, skills development, and special economic zones such as the Tshwane Automotive Special Economic Zone based in Gauteng, and the Eastern Cape’s industrial development zone of Coega in anchoring investment. But Ragaven acknowledged speed is critical to bringing about any change. “The partnerships are there, but the speed of action is even more critical now than ever before.” The Eastern Cape scenario CEO of the Eastern Cape Development Corporation, Ayanda Wakaba, highlighted the vulnerability of the province’s automotive industry, long a hub for OEMs such as Mercedes-Benz and VW. “The market dynamics have shifted so much that establishing an industrial plant today is very different from before. “We must benchmark ourselves against what other countries are doing,” he said. While defending the sector remains essential, Wakaba stressed the need to diversify into new industries and leverage digital infrastructure investments in rural areas to broaden economic opportunities. A call for action For Andreas Brand, CEO of Mercedes-Benz SA, the formula is simple: action. He pointed to Mercedes-Benz’s investments in solar energy and skills development through its learning academy as proof that collaboration with the government can deliver results. “Without acting, theory never hits reality,” he said. “We need robust, constructive engagement and specific actions that all parties adhere to. That is what delivers change.” Mickey Mama, head of department at the Eastern Cape’s Department of Economic Development, Environmental Affairs and Tourism, drew comparisons with Morocco and Eastern Europe, both of which have surged ahead of South Africa in attracting investment. “Our municipalities take too long to approve applications. Morocco has a turnaround time that outpaces us completely,” Mama said, warning that red tape and a lack of policy clarity on NEVs risked pushing investment elsewhere. Chinese brands on the lookout for opportunities South Africa is also facing a wave of interest from Chinese automotive brands, but obstacles remain. Conrad Groenewald, COO of Great Wall Motors, noted that while Chinese firms are eager to invest outside of China, South Africa’s current policies make it hard to justify the return on investment. “We compete globally. South Africa is already at a disadvantage, being at the tip of Africa. We need policies that allow reasonable returns for investors,” he said. Groenewald also cautioned that rising import duties and the potential removal of import credit benefits would hurt consumers and deter new entrants. “Vehicle pricing has already outpaced earnings. If policies change further, it will make it even harder to do business here,” he warned. Need to strengthen component supplier base Bronwyn Kilpatrick, CFO of Toyota, stressed the urgent need to strengthen South Africa’s tier two and tier three supplier base. “In South Africa, our manufacturing pyramid is inverted. Only 20% of value-add comes from local tier two and three suppliers. In Thailand, it’s the opposite, and it’s driven by targeted incentives,” she explained. Developing smaller suppliers, however, requires long-term commitment, mentorship, and patient capital, she added. The time to act is now Across the panel, one complex theme emerged: the need for clear policy, faster implementation, and real partnerships to support both OEMs and suppliers. As Ragaven concluded: “There is a shift in mindset in government, but speed is critical. We cannot afford to wait any longer.” South Africa’s automotive sector, which contributes nearly 5% to GDP and supports hundreds of thousands of jobs, now faces a defining moment. Competing nations like Morocco, Thailand, and Eastern Europe have shown what decisive policy and execution can achieve. South Africa must act – and it must act now – to translate its world-class skills and its hard-earned manufacturing expertise into a future-ready industry.

One-Stop Shop for investors launched in Tshwane

News / By Tasez

A new InvestSA One-Stop Shop has opened in the City of Tshwane to assist investors to speed up their new businesses or projects and cut bureaucratic red tape. The centre, based at the Tshwane Economic Development Agency (TEDA) offices in Centurion, is part of the government’s drive to become investor-friendly by improving the business environment by lowering the cost of doing business and making the process easier. The official opening, on 23 September 2025, highlighted the last drive by the City of Tshwane in attracting investors to support its infrastructure development and local economic growth, and is in keeping with its #TshwaneRising campaign. The one-stop shop, which aims to improve the ease of doing business, attract and retain investment, thereby creating jobs and supporting the City’s economic revitalisation, is the result of a strategic partnership between the Department of Trade, Industry and Competition, the Gauteng Growth and Development Agency, and TEDA. It is also an important development for the Tshwane Automotive Special Economic Zone, providing another platform to showcase the TASEZ business case for investors. The City of Tshwane’s executive mayor, Dr Nasiphi Moya, noted that the launch of the centre came just weeks after the City’s investment summit. The one-stop shop is an important facility in helping the investors who made pledges to the tune of more than R16-billion at the summit. Dr Moya reiterated the City’s ambitious plans encapsulated in the Tshwane Economic Revitalisation Strategy, which has plotted the roadmap of empowering the City through creating more than 80 000 jobs, attracting up to R26-billion in new investment, and achieving a growth rate of 4% within the next five years. The latest Statistics South Africa data confirms that the City of Tshwane is making significant progress. It has shown a 4.5% decrease in unemployment, driven by the city creating more jobs than any other metro. “This shows that Tshwane is rising,” the MMC for Economic Development and Spatial Planning, Sarah Mabotsa, said. The City of Tshwane has identified 11 key economic sectors, with the automotive manufacturing sector sitting at the top of that list. TASEZ, which is based in the east of the City of Tshwane, is a prime example of what investment can do in boosting the local and provincial economy, providing jobs for township businesses and individuals, transforming both the sector and the economy, and promoting skills development and innovation. With the launch of Phase 2 and the development of logistics infrastructure, TASEZ now provides new avenues for investors to explore, further enhancing Tshwane’s role as a hub of innovation, manufacturing, and trade. These initiatives are not only creating jobs today but also laying the foundation for long-term prosperity. “We need to agree on the vision that we have for the future of this city and its people,” said Moya.

SMMEs are levers of innovation-led industrialisation that can diversify and decarbonise SA’s economy

News / By Tasez

By Mandla Mpangase The 2025 Naacam Show is taking place at a time when the automotive sector is undergoing transformation that is driven by technology and decarbonisation. “We meet as the global economy faces strong headwinds brought about by new shifts towards unilateralism and protectionism,” the Minister of Small Business Development, Stella Ndabeni, said in her address on the second day of the show, 14 August 2025. “We know the US tariffs will impact the market competitiveness of OEMs, including those located in (the Eastern Cape).” This year, the Naacam Show is taking place in Gqeberha in the Eastern Cape, displaying the capabilities within South Africa’s leading manufacturing sector. TASEZ, too, is attending the Naacam Show, sharing information about the special economic zone. Emphasising the tone set the day before by the Minister of Trade, Industry and Competition, Parks Tau, Ndabeni emphasised that failure to position the country strategically and reprioritise aspects of the South African Automotive Master Plan, could see us falling behind. “This is something all of us need to galvanise around,” she said. “We know we need to tweak our model. Rebates on imports have improved the competitiveness of OEMs, but have not enabled the development of local supplier capabilities. “We haven’t built the necessary capabilities in design and innovation, and in specialised components.” The Naacam Show, the minister noted, is more than an industry exhibition. It is a platform to benchmark where South Africa stands as a supplier of components, and provides insights into what the government, original equipment manufacturers, and representative bodies like Naacam need to do to position themselves in a rapidly changing industry. “The overall competitiveness of the South African automotive sector depends on the extent to which we can master vertical integration across the value chain,” Minister Ndabeni added. “Shared economic infrastructure like automotive supplier parks and special economic zones have played an enabling role in promoting such integration, as have industry clusters.” Like the Tshwane Special Economic Zone (TASEZ), the Department of Small Business Development is committed to the inclusion of small, medium, and micro enterprises (SMMEs), including the automotive sector. “The reality is: without deep transformation, the sector will not meet the inclusive growth targets set out in the South African Automotive Master Plan 2035 (SAAM 2035,” Ndabeni said. With its focus on developing SMMEs, the Department of Small Business Development, together with the Automotive Industry Development Centre (AIDC) and the International Labour Organisation (ILO), completed a detailed feasibility study for the establishment of a Gauteng-based automotive cluster. “The study confirmed that such a cluster is not only feasible, but strategically necessary to address coordination gaps, improve supplier readiness and deepen SME integration in the value chain, especially the production of high-quality components by SMEs.” In addition, department, through the Small Enterprise Development and Finance Agency is leveraging strategic partnerships to support SMMEs through: “These partnerships are grounded in co-investment, shared learning, and the common goal of expanding opportunities for small businesses in the automotive space.” The Department of Small Business Development also has targeted financial tools to help SMMEs, such as: The minister pointed out that in her 2025/2926 budget vote speech, she announced that the department would support one million SMMEs. “I announced the establishment of a development fund, capitalised at R2.95-billion over the medium-term expenditure framework (MTEF), targeting new entrants, including micro and informal businesses,” Ndabeni said, encouraging micro enterprises in the automotive after-care and services market to apply. Announced at the same time were the establishment of a commercial fund for more high-growth SMMEs capitalised at just under R1-billion over the MTEF, a women’s fund capitalised at R300-million, and a youth fund also capitalised at R300-million. Ndabeni also spoke about South Africa’s Presidency of the G20 this year, noting that the Department of Small Business Development would leverage South Africa’s role to position SMMEs and startups as critical levers of innovation-led industrialisation that diversifies and decarbonises the economy. “This is especially relevant in sectors like automotive manufacturing, where innovation, localisation, and inclusive industrialisation go hand in hand. You cannot do one without the other, and we must build a coherent ecosystem to enable such integration.” The minister concluded her address, emphasising the country’s commitment to ensuring SMMEs are at the forefront of the industry, as innovators and entrepreneurs, as small producers, as solution providers, and as global players.

SA’s auto industry is the backbone of the country’s economic growth

News / By Tasez

By Mandla Mpangase The automotive industry holds significant potential for shared prosperity through targeted industrial development, according to South Africa’s Deputy President Paul Mashatile. He was delivering the keynote address on 14 August 2025 at this year’s Naacam Show, currently taking place in Gqeberha, in the Eastern Cape. The automotive sector is one of South Africa’s most strategically important and internationally linked industries, accounting for 22.6% of manufacturing output and 5.2% of the country’s gross domestic product. Although the sector is a success story of industrial policy, it is important to increase employment in the sector. Currently, 115 000 people are employed in the sector, with more than 80 000 of those working in component manufacturing. The deputy president noted that the industry is export-oriented, globally competitive, and plays a vital role in regional and national industrial development. In 2024, the component sector exported R62.5 billion of components. “We must never allow the loss of these gains because of external and internal pressures. I say this with concern because the employment levels in the sector have been under strain due to ongoing economic pressures and reduced production volumes.” Naacam, the National Association of Automotive Component and Allied Manufacturers, recorded 12 company closures over the past two years, affecting the livelihoods of 4 000 individuals. “What is of more concern are the recently released figures by Statistics South Africa showing that the country’s unemployment rate has climbed to 33.2% in the second quarter of 2025, an increase from 32.9% in the previous quarter,” Mashatile said. “This latest figure is a clear indication that the nation’s unemployment crisis remains an urgent concern.” More effort is needed to combat unemployment, including improving education and skills to match labour market demands, promoting entrepreneurship and small enterprises, and investing in public employment programmes to generate jobs. TASEZ is currently attending Naacam to share knowledge and monitor the latest developments and trends in the sector. The deputy president noted that the government supports the automotive industry through a combination of investment incentives, improved policy frameworks, and infrastructure development, including: Guiding the sector is the South African Automotive Master Plan 2035 (SAAM), which aims to build a globally competitive and transformed industry. SAAM goals include growing vehicle production to 1% of global output (1.4 million vehicles), increasing local content to 60%, doubling employment to 224,000 employees, and deepening transformation and value addition, with 25% Black-owned involvement at the Tier 2 and Tier 3 component manufacturer level. The Automotive Production Development Programme Phase 2 is the policy programme intended to support and enable the realisation of the objectives of SAAM. “We recognise the industry’s significant role and see it as the backbone of our economic growth, promoting industrial development and encouraging innovation,” Mashatile said. “I am of the view that by increasing investment in research and development, we can use the power of technology to improve efficiency and sustainability, ensuring that our products and services stay competitive in the global market.” New opportunities for growth could be unlocked through nurturing a culture of collaboration and partnership among manufacturers, suppliers, and stakeholders, he added. Support for the African Continental Free Trade Area “This sector, not just in South Africa but in Africa as a whole, has emerged as a critical area of investment, providing substantial prospects for growth and development.” In this context, it was important to acknowledge the significance of the African Continental Free Trade Area (AfCFTA) agreement on economic integration and industrialisation, which is projected to draw additional international investment into the African automotive industry. “The agreement has the potential to significantly boost the automotive industry across the continent by reducing trade barriers, fostering regional value chains, and harmonising regulations. This could lead to increased production, lower costs for consumers, and a more competitive market.” The implementation of the agreement has the potential to lessen the dependency of African countries on developing countries for automotive components and completed vehicles by promoting regional value chains and increasing local production. “Creating a single continental market for goods and services could potentially lead to increased trade, investment, and job creation within Africa.” However, Mashatile added that this does not suggest that South Africa does not need other nations as trading partners. “We believe in diversifying our investments and engaging in trade with several partners.” Mashatile explained that the Cabinet has adopted a new trade proposal to the United States that aims not just to settle the 30% tariff but also has ramifications for over 130 other trading partners who may reroute products into the South African market. “I must highlight that there will be repercussions felt throughout the entire value chain if we do not reach an amicable trade agreement with the White House. “It is probable that South African suppliers who provide support to domestic original equipment manufacturers that export automobiles or integrated systems to the United States would experience volume cutbacks. This will put pressure on production planning, employment decisions, and investment choices.” The tariffs threaten to disrupt well-established trade flows and weaken the global competitiveness of South Africa’s automotive manufacturing ecosystem. “However, South Africa remains resilient and steadfast in its efforts to grow and protect our economy. We will continue engaging with the USA to identify practical solutions.” Attracting significant investment and driving innovation could strengthen South Africa’s manufacturing capabilities and global competitiveness. Proactive transformation of the sector “We can increase localisation with existing and potential new original equipment manufacturer entrants to market, achieving a 5% growth in South Africa’s localisation rate, potentially resulting in R30-billion in new local procurement.” In addition, research has indicated that South Africa is well positioned to localise high-value new energy vehicle components, including fuel cells, thermal management systems, e-axle and high-voltage battery mineral beneficiation and assembly. “At the heart of our vision for the automotive industry is a commitment to shared prosperity. We believe that sustainable development must benefit all members of society, empowering individuals and communities to thrive and succeed.”

SA’s automotive sector can model African industrial resilience, says Minister

News / By Tasez

By Mandla Mpangase The annual Naacam Show takes place at a defining moment for the South African automotive sector, which is facing intersecting challenges that demand collaboration. With these words, Minister of Trade, Industry and Competition, Parks Tau, began his assessment of the automotive manufacturing sector in a keynote address to the Naacam audience in Gqeberha on 13 August 2025. This year’s show brings together automotive component manufacturers, public and private sector stakeholders, and service providers to foster collaboration, with the aim of galvanising the industry around the goals outlined in the South African Automotive Master Plan 2035. The automotive manufacturing sector is the cornerstone of South Africa’s manufacturing economy, contributing 5.2% to the country’s gross domestic product and 22.6% of the country’s industrial output. Despite these significant numbers, the industry faces several interconnected challenges, the minister noted. “Yet within these challenges lie transformative opportunities to redefine and leverage our global competitiveness.” The minister went on to urge all stakeholders to unify their actions across three pillars: on localisation, innovation, and inclusive transformation. Urgent challenges Although the industry employs 115 000 South Africans directly, with over 80 000 in component manufacturing alone, it faces the stark reality that domestic sales of locally produced vehicles plummeted to 515 850 units in 2024, far below the South African Automotive Master Plan 2035 (SAAM) target of 784 509. In addition, Minister Tau noted: “Importantly, 64% of vehicles sold here are imports, eroding local production scales.” Local content remains stagnant at 39%, well short of the 60% target, he said, adding this was at a time when United States tariffs are impacting significantly on the country’s R28.7-billion automotive exports. These pressures have triggered 12 company closures and over 4 000 job losses in two years. The erosion of the industrial value of the sector is exemplified by recent suspensions at Mercedes-Benz and other original equipment manufacturers. The path forward: Strategic imperatives “Localisation is not merely policy compliance, it is existential,” Minister Tau said. “A 5% increase in local content would unlock R30-billion in new procurement, dwarfing the R4.4-billion US export market.” However, to achieve this, “we must act collectively to address some of the bottlenecks to growth”. With this in mind, the Department of Trade, Industry and Competition is reviewing the Automotive Production Development Programme (ADPD) as a comprehensive way of responding to the challenges the sector is facing, but also to ensure regular growth in the sector meets the goals of the SAAM. Some of these reforms include the incentive structure and shifting duty credits to reward manufacturing instead of assembly credits. “Our critical minerals and metals strategy will prioritise beneficiating platinum group metals, copper, and manganese for high-value new energy vehicle components like fuel cells and batteries.” Digitisation, decarbonisation, and diversification – global competitiveness hinges on embracing disruption “At the dtic, we have been engaged on a path of developing a new industrial policy which focuses on decarbonisation, digitisation, and diversification. “As Naacam notes, carbon has become ‘part of the cost of doing business and increasingly, part of the value too’.” As the globe shifts to new energy vehicles and competition from China, it is crucial that South Africa scale new products such as e-axles and thermal systems, and markets, particularly under the African Continental Free Trade Agreement. Referring to development around new energy vehicles, the minister reported that amendments of the automotive production and development programme phase 2 legislative framework for the inclusion of electric vehicles and associated components have been completed. In addition, the relevant amendments to the existing Automotive Investment Scheme (AIS) guidelines are being finalised to align with APDP2 amendments and the energy vehicle legislative framework. “The Taxation Laws Amendment Act, gazetted on 24 December 2024, introduces a 150% capital allowance for qualifying investments in energy and hydrogen vehicle production. It covers assets such as buildings, plant, and equipment brought into use between 1 March 2026 and 1 March 2036.” A critical minerals strategy and battery value chain master plan are also being developed. A comprehensive skills gap analysis was completed under the energy vehicles skills workstream. Curricula and certification programmes are now being developed with Tshwane University of Technology, Cape Peninsula University of Technology, Durban University of Technology, and Unisa. A pilot project involving 100 students is expected to be rolled out in Q1 of 2026 once the academic materials are finalised. Transformation: Scale, skills, and equity “We have walked a long journey with the automotive sector on transformation. It therefore goes without saying that inclusion drives growth.” SAAM’s target of 130 new black-owned manufacturers is advancing, with 26 black-owned small, medium, and micro enterprises (SMMEs) exhibiting at the 2025 Naacam Show. However, the pace needs to be picked up. “To this end, we are hopeful that the industry will support the endeavour of the Transformation Fund that we are pursuing at the dtic with the view to enhancing overall transformation through Enterprise and Supplier Development (ESD) funds.” The minister added: “We need to accelerate skills development to ensure that we prepare our labour force for the dramatic changes that artificial intelligence will bring into the sector.” The government is also working hard to eliminate compliance burdens and reduce red tape, which inhibits investment into the country’s automotive sector. “Our policy response is accelerating, and we plan on introducing an Omnibus (General Laws Amendment) Bill, which looks to fast-track high-impact investments and projects within 90 days.” In addition, the government is looking at the impact of imports into the country and the impact they are having on local production. “We want to grow the sector, so our first option must not be to wield a stick but rather offer a carrot to these companies to attract more investment into the country, thereby increasing the value-add of particularly our component manufacturers.” Minister Tau also encouraged the industry to accelerate collaboration. “OEMs need to continue to honour local procurement targets and mentor and invest in SMMEs.” Tier 1 Suppliers must drive equity partnerships and Tier 2/3 development. “Naacam’s