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Gauteng maps out its NEV future as Summit draws to a close

By Mandla Mpangase The Big Question at this week’s New Energy Vehicles Summit can best be summed up as ‘How can South Africa fast-track to alternative energy vehicles?’ On Day 2 of the NEV Summit 2025, hosted by the Gauteng Growth and Development Agency, the Automotive Industry Development Centre (AIDC) and the Tshwane Automotive Special Economic Zone at Gallagher Convention Centre, in Midrand, on 23 October 2025, a panel discussion on Challenges and opportunities in the charging infrastructure provided some answers. Moderated by the Department of Transport’s Pulane Manale, some pointed questions were posed to the panellists around “smart charging”, the use of artificial intelligence (AI), skills development, the business case for NEVs, the country’s readiness for the transition, and the role of government interventions. In response, the panel made it clear that South Africa’s road to green mobility will be powered not only by technology, but by collaboration, innovation and decisive government action. Technology at the heart of the transition Cathy Shilubana, CEO of Volt Hi reiterated that green mobility was tech-based. “AI helps us manage everything, from the interface between drivers and chargers to predicting carbon emissions and detecting vandalism or faults in real time. Our systems can lock down automatically if tampering is detected. That’s how AI is securing the infrastructure.” The company, which is partnering with the AIDC, revealed plans to establish an EV-charger assembly plant in South Africa, training local engineering graduates and sending them to China for hands-on experience. “We are reskilling young people for jobs that are fit for purpose,” she added. “This is how technology transfer becomes job creation.” Lessons from abroad Cangjun Zhou, from China’s EV Mengchen Wenzou, drew lessons from projects in Ethiopia. The first challenge is one well-known to South Africans – an unhindered power supply. “We need stronger transformers and upgraded grids.” The second challenge is that of s government planning. “Without long-term strategy and support, progress slows,” he said. His recommendation for South Africa was to focus on fast-charging infrastructure around 160 kW, which suits most vehicles in the mainstream market while being cost-efficient. Partnerships, he emphasised, are crucial – not only with government, but with local payment solutions. “The payment model affects how convenient EVs become. Every country needs its own solution.” He also announced that his firm would be building an assembly plant in South Africa, supported by local partners, aimed at serving the entire African market. “We hope South Africa will be the leader for green energy across the continent,” he said. Before NEVs there was GridCars For Winston Jordan, CEO of GridCars, the local EV-charging pioneer, the transition is already under way. “We started building charging infrastructure before EVs even arrived, back in 2011,” he said. “Now there are over 800 public chargers across the country and roughly 6 000 more installed in homes. So, the idea that South Africa isn’t ready simply isn’t true.” Jordan pointed out that charging in South Africa is cheaper than petrol by at least a third. Different chargers, speeds, and connections mean different prices. But the average driver pays far less than they would for fuel.” He also observed that the private sector should be driving the charging rollout, suggesting that government had more pressing priorities in delivering basic services. Nonetheless, Jordan issued a challenge to government to lead by example. “The biggest thing government can do is take the lead and set aggressive targets,” he said. “If the President announced tomorrow that all new government vehicles must be electric, it would send a clear signal to the market.” He also urged that the automotive sector look at targets closer than the South African Automotive Masterplan’s 2035. “The target of 2035 is too late; we need 2028 or 2030 at the latest.” Load shedding is in the rear-view mirror Eskom’s Mashangu Xivambu, responding to questions about grid capacity and energy security, was optimistic. “Load-shedding is now in the rear-view mirror,” he said. “We’ve had 157 consecutive days without it, and we’re learning from the past.” Eskom, he noted, has already launched a pilot programme for EVs and has committed to converting its entire 8 700-vehicle fleet to electric by 2035. The utility is also installing solar-powered charging stations at its offices, including in rural areas, and plans to open charging points to the public. “People need to see that they can drive anywhere and still charge their vehicles,” he said. “If Eskom is doing it, others will follow.” The way forward The panel agreed that while technology is key, policy coherence and skills development are equally important. “We need a conducive environment to grow the NEV sector,” Shilubana said, adding an innovative idea that would draw attention of the public to the importance of green mobility. She suggested the use of green number plates on NEVs to help the public recognise them on the road and normalise their presence. “The more people see them, the faster adoption grows.” Jordan said that skills transformation must include retraining traditional automotive technicians. “The future is electric, but we can’t leave petrol-engine mechanics behind. We must upskill them for the next generation of vehicles.” By the end of the discussion, one message came through clearly: South Africa is ready, but urgency and alignment are essential. From AI-powered chargers to homegrown assembly plants, and from Eskom’s electric fleet to the private sector’s nationwide network, the building blocks are already in place. What is required is fearless leadership and an accelerated NEV rollout. As Jordan put it: “Electric mobility is not a choice between technologies, it’s a transition. The future is electric. The question is whether South Africa will be ready to lead or just follow.”

NEV Summit sets clear direction for South Africa’s green mobility future

News / By Jenny Tennant

By Mandla Mpangase Day 1 of the New Energy Vehicles Summit provided much to think about. The opening day of the inaugural New Energy Vehicle (NEV) Summit in Midrand proffered a compelling combination of insights, inspiration and strategic direction, positioning South Africa, and Gauteng in particular, as a frontrunner in Africa’s transition to sustainable mobility. From the science behind hydrogen and battery-powered vehicles to the policies shaping South Africa’s green mobility roadmap, Day 1 covered a broad spectrum of issues. Delegates explored global trends, drew lessons from international case studies, including from China, and examined local readiness across policy, skills, and industry. In his summary remarks on the day, the CEO of the Tshwane Automotive Special Economic Zone (TASEZ), Dr Bheka Zulun, noted that the discussions were “not just about dialogue, but about direction”. Every presentation, he said, “was the emergence of a shared vision; one that sees South Africa transitioning into sustainable mobility and industrial renewal”. Gauteng, as the country’s industrial heartland, was described as playing a strategic role in the future of the automotive ecosystem, leveraging its strong logistics infrastructure and manufacturing base to attract investment and drive innovation. “Today affirmed South Africa’s readiness to lead Africa’s green mobility future,” Dr Zulu added. “The key message was about collaboration – between government, industry, academia, and innovators – to create jobs, empower small, medium and micro enterprises, and localise technology.” Dr Zulu likened this collaboration to a relay race, where each participant contributes their unique strength at different stages: “It’s not about competition, but coordination, knowing when and how to pass the baton to build momentum together.” Throughout the day, recurring themes included industrial transformation, skills development, and ensuring that technology and labour advance together for a just transition. Speakers also emphasised policy clarity and investment confidence, highlighting growing optimism in the local NEV manufacturing sector. The province called for “urban-driven industrialisation” that integrates energy policy, investment frameworks, and urban planning, aligning Gauteng’s innovation and logistics strengths to create a globally competitive green automotive hub. As the day concluded, participants agreed that the NEV revolution “is no longer a possibility, but a present reality”, and that South Africa’s leadership must act boldly and decisively to harmonise policy, infrastructure, and workforce development. “Our NEV transition is not a single-sector effort – it’s a national movement,” Dr Zulu emphasised. “We must plan boldly, invest bravely, and move together to make Gauteng cleaner, smarter, greener, and more connected.”

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

News / By Jenny Tennant

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

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

News / By Jenny Tennant

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. [This article first appeared in Business Day – Time for SA to embrace new energy vehicles for export survival – 22 October 2025] 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 Masterplan 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: Developing domestic production and localisation of EVs and components; Phased fiscal support, import duty adjustments (especially for battery inputs), and tailored incentives to accelerate early uptake; Infrastructure requirements including charging networks, grid readiness, standardisation and inter-operability; and Mechanisms to coordinate across government, industry, labour and other stakeholders. 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 Masterplan (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: Increasing local content in assembled vehicles from around 39% to 60% by 2035; Growing South Africa’s share of global production to 1 %; Doubling employment in the sector across all tiers; Creating new tier-2 suppliers to broaden the supply chain, with a particular focus on black-ownership and localisation. 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. First published by Business Day Bheka Zulu: Time for SA to embrace new energy vehicles for export survival: 22 October 2025.

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

News / By Jenny Tennant

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 EV White Paper. “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.” The New Energy Vehicle Summit 2025 takes place from 22 to 23 October at Gallagher Convention Centre, bringing together industry leaders, policymakers, and investors to chart South Africa’s journey towards a greener automotive future.

Gauteng takes the wheel: Driving Africa’s NEV future

News / By Jenny Tennant

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 is set to host 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. 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 account of 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. Gauteng: South Africa’s economic hub 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, Nissan, Tata and Iveco, 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 new 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 is not just about speeches; it is 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.

South Africa must shift towards green mobility

News / By Jenny Tennant

South Africa’s transition to a green and sustainable automotive industry is not a “nice-to-have” it’s a fundamental social and economic requirement. As the world accelerates toward green mobility, the country’s automotive leaders are racing to ensure that local manufacturing keeps pace with global change while also capturing greater value from Africa’s mineral wealth. This was the message from Andile Africa, CEO of the Automotive Industry Development Centre (AIDC), during an interview on SAfm Radio on Friday, 17 October 2025, with Cathy Mohlahlana on The Talking Point. Africa was speaking ahead of the inaugural New Energy Vehicle (NEV) Summit, set to take place on 22–23 October at Gallagher Convention Centre – an event that signals South Africa’s intent to move from policy to action in the NEV space. “Globally, the move from internal combustion engines towards NEVs, particularly battery electric vehicles, is no longer a debate – it’s a reality,” said Africa. “South Africa must move with the rest of the world or risk losing a significant part of our automotive export markets.” Gauteng at the centre of the shift Gauteng, the country’s economic engine, is at the forefront of this transformation. The province accounts for 37% of all vehicles sold in South Africa and is home to three major original equipment manufacturers (OEMs), BMW, Ford, and Nissan. The Gauteng province, led by the Gauteng Growth and Development Agency, and supported by the AIDC and the Tshwane Automotive Special Economic Zone, is playing a key role in preparing South Africa for the shift to green mobility. But, Africa notes, the transition will not be easy. South Africa’s NEV uptake remains modest at less than 2% of new vehicle sales – largely due to high vehicle prices and limited charging infrastructure. “Electric vehicles are still 40% to 50% more expensive than internal combustion cars,” Africa explained. Something to mull over is how other countries have managed to drive their NEV markets and combat high costs. “Other countries have introduced incentives or subsidies to bridge this gap. We’re not there yet in South Africa, and that’s one of the discussions we’ll be having at the summit.” Export pressures South Africa’s automotive industry, which exports most of its locally produced vehicles – BMW, for example, exports 97% of its vehicles to the UK and Europe, is already under pressure from international regulations. “Europe has made it clear that by 2030, they will no longer register new vehicles that are not zero-emission,” Africa noted. “If we don’t adapt our manufacturing base, we stand to lose access to those markets and the thousands of jobs they sustain.” This makes the South African Automotive Masterplan 2035 (SAAM 2035) and the EV White Paper more urgent than ever. Both frameworks envision a globally competitive, green automotive industry that supports innovation, industrialisation, and export growth. However, the transition cannot succeed without addressing energy security and infrastructure. As South Africans often point out, load-shedding remains a major obstacle. “It’s a fair concern but this is precisely why we need to use this transition to rethink how we generate and distribute energy. The entire value chain must move toward cleaner, more sustainable sources like solar and wind.” Beneficiating Africa’s minerals In a second interview on the same day, Africa told Ashraf Garda on SAfm’s afternoon show The National Pulse that another opportunity – and challenge – for South Africa’s automotive sector— lies beneath Africa’s soil. The continent holds vast reserves of critical minerals such as lithium, cobalt, manganese, and nickel which are all essential for electric vehicle batteries. Yet much of this wealth leaves African shores unprocessed. “If Africa wants to truly benefit from the green transition, we must not only supply raw materials, we must manufacture and beneficiate them locally,” said Africa. South Africa and the continent can build value chains that produce battery components, not just export ore, and in so doing, secure jobs, industrial growth, and economic independence. The upcoming NEV Summit will bring together government, industry, academia, and investors to explore precisely this: how to build a sustainable ecosystem for NEVs, from mineral beneficiation and battery production to vehicle assembly and charging infrastructure. Although South Africa’s journey toward NEVs is still at an early stage, the momentum is growing. The policy groundwork is in place, global market pressures are mounting, and industrial leaders like Africa are pushing for coordinated action. South Africa has a strong foundation: the raw materials, the manufacturing base, and the industrial know-how. As the NEV Summit convenes in Gauteng next week, one thing is clear: South Africa’s green mobility revolution will not only depend on how it adapts to new technologies, but on how boldly it turns its mineral wealth into sustainable industrial value.

South Africa gears up for new energy vehicle transition

News / By Jenny Tennant

South Africa’s transition to a green, sustainable automotive sector is gathering momentum with the launch of the inaugural New Energy Vehicles (NEV) Summit next week. The summit, hosted by the Gauteng Growth and Development Agency (GGDA), Automotive Industry Development Centre (AIDC), and the Tshwane Automotive Special Economic Zone (TASEZ), will be held on 22–23 October 2025 at the Gallagher Convention Centre in Midrand. This summit will see policymakers, Original Equipment Manufacturers (OEMs), investors, and innovators designing a roadmap to accelerate the South Africa’s transition to NEVs, marking a major milestone in South Africa’s journey towards a low-carbon, globally competitive automotive future. While the South African Automotive Masterplan (SAAM 2025) and the Electric Vehicle White Paper already provide a framework for transformation, the NEV Summit, is where policy turns into results. The event will showcase progress, partnerships, and practical steps towards building a robust local NEV ecosystem. As South Africa’s industrial heartland, Gauteng produces a significant share of the country’s automotive manufacturing – one third of all of the country’s automotive output – and has the infrastructure, logistics, and talent to scale up its NEV manufacturing. With the European Union’s carbon neutrality policies reshaping global trade, South Africa’s automotive exports, with the common destination being the EU, must increasingly meet low- or zero-emission standards. The NEV Summit underscores the urgency of adapting now to safeguard market access, competitiveness, and long-term sustainability. Key themes at the 2025 NEV Summit: Policy alignment and industrial readiness for NEV manufacturing. Green economy investment and financing opportunities. Skills development and workforce transition. Infrastructure and technology partnerships to enable NEV production and uptake. As South Africa’s automotive sector evolves, GGDA, AIDC, and TASEZ is at the forefront of driving inclusive, green industrialisation, ensuring that the transition to cleaner mobility not only meets global standards but also creates sustainable local jobs and growth opportunities.

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

News / By Jenny Tennant

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 under way: 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.”

Reimagining the future of SA’s auto industry

News / By Jenny Tennant

By Mandla Mpangase Collaboration, skills development, and a bold push into Africa were the recurring themes during the “Value of reimagining the future, together” panel discussion hosted by naamsa during the South Africa Auto Week 2025 in Gqeberha on Wednesday. Moderated by Shinny Gobiyeza, Chief Operations Officer at naamsa (The Automotive Business Council), the high-level dialogue on 1 October 2025 brought together leading voices from finance, manufacturing, technology, and industrial development to explore how South Africa can secure its place as the continent’s automotive hub. A shared vision for 2035 CEO of TransUnion Africa, Lee Naik, set the tone by urging stakeholders to think long-term. “South Africa’s biggest challenge is not that we don’t have answers, but that we haven’t created enough spaces for honest, collective dialogue. If we can start aligning around 2035 as a target, we can fill the gaps left by global markets like the US. It begins with conversations like this,” he said. The South African Automotive Master Plan sets out key targets for the country’s automotive sector to reach by 2035, including increasing vehicle production to 1.4 million vehicles a year and raising localisation levels in South African-manufactured vehicles from an average of 40% to 60%. Managing executive of Absa vehicle and asset finance, Charl Potgieter, highlighted the industry’s dual role as a GDP driver and social enabler. “The automotive industry contributes 5.2% to South Africa’s GDP, and it creates hundreds of thousands of jobs. But beyond that, it carries our people to work, to school, to worship, to family. How can we not invest in ensuring more South Africans gain access to mobility?” WesBank’s CEO Robert Gwerengwe, echoed the sentiment. “Mobility is not just about vehicles; it’s about giving people access to the economy. A job, an education, the ability to operate in society – that’s what we finance. If we only focus on market share, we’ve missed the point.” Infrastructure and logistics as catalysts For the CEO of Tshwane Automotive Special Economic Zone (TASEZ), Dr Bheka Zulu, the future hinges on building resilient logistics networks. “If you look at the topic of the panel discussion, we are imagining the future as a collective, and it’s a collective that is sitting with a bit of uncertainty in terms of how the market flows,” Dr Zulu noted. Focusing on the term ‘together’, the TASEZ CEO observed that all in the industry need to find solutions for the country. “The reality is that we are sailing through some stormy the waters … and the shift in the industry fostered by digitisation and the issue of sustainability is what is rocking some of the boats,” he added. “Cargo is king. South Africa has over a century of automotive manufacturing expertise, but unless we create sustainable, cost-effective logistics value chains, we will lose our competitive edge,” Dr Zulu said. “Special Economic Zones must serve as gateways to Africa, linking industrial complexes with continental markets through efficient trade corridors.” Dr Zulu emphasised the need to look to the African Market. “We should be focusing on the market that we have, which is African market. We’ve got a capture market. We’ve got a market that we understand. How are we allowing the east to come and penetrate a market that we better understand.” CEO of Accenture Africa, Kgomotso Lebele, stressed the importance of transformation and localisation. “The industry must not be seen in isolation. It sits at the heart of reforms in renewable energy, mining, technology, and skills. If we get localisation right, we scale employment and create opportunities for entrepreneurs to enter global value chains.” The Automotive Industry Development Centre’s CEO Andile Africa, pointed to the practical progress made through incubation programmes pairing small enterprises with global OEMs. “We have entrepreneurs who started as tier-three suppliers and now serve major manufacturers. Transformation is possible, but it requires patience, scale, and deliberate partnerships.” Data, skills and financial inclusion Naik reminded the audience of the stark exclusion still facing millions. “There are 16 million South Africans with hopes and dreams of mobility, but the financial system says no. Technology and data can change that. Using AI and alternative data sources, we can give millions a chance to access finance, mobility, and opportunity.” The skills gap was another recurring theme. Panelists agreed that without investment in AI, robotics, and digital capabilities, South Africa risks losing its automotive competitiveness. “The future is youthful. Our continent’s young people hold the key – if we equip them with the right skills today,” said Lebele. The discussion concluded with a shared recognition that South Africa’s automotive industry cannot afford fragmented efforts. Policy certainty, infrastructure investment, financial inclusion, and regional integration were all identified as non-negotiables. “Let’s stop duplicating efforts,” urged Gobiyeza. “The industry must stand as SA Inc., put its best foot forward, and show OEMs that South Africa is not only open for business but is the natural gateway to Africa’s automotive future.”