Tasez

Andile Africa

South Africa must shift towards green mobility

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

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.

The TASEZ breakaway discussion team at the Tshwane Energy Summit 2024: the CEO of the AIDC Andile Africa, TASEZ's CEO Dr Bheka Zulu, the NAAMSA's chief policy officer Tshetle Litheko, and the co-founder of the Mobility Centre for Africa Vincent Radebe

TASEZ hosts vital and vibrant discussion on new energy vehicles

New energy vehicles loom large in the discussions on the evolving automotive manufacturing landscape – but the time for the internal combustion engine is not yet over. Two experts from the industry discussed the important topics of whether the legacy original equipment manufacturers are being left behind by disruptive innovators like Tesla and BYD, and the new energy vehicle landscape in a South African context during a breakaway session at this year’s Tshwane Energy Summit on Thursday, 20 June 2024, held in Menlyn Maine, Pretoria. The breakaway session was hosted by the Tshwane Automotive Special Economic Zone, Africa’s first automotive city and an important player in the country’s automotive manufacturing sector. Introducing the session, TASEZ CEO Dr Bheka Zulu provided the insight into the new energy vehicle (NEV) landscape globally and locally. “We all know that the NEV space has been growing. In the last year, if you compare figures from the first quarter of last year, it grew by 8.7% – units that have grown from 1 665 to 2 220. And in the second quarter, that number grew to 3 042. These are the some of the figures that show the demand and the need for the sector to grow.” He noted a number of important milestones in the drive towards cleaner energy: the publication in 2023 of a White Paper on NEVs aimed at unlocking the potential of South Africa’s NEV market; the fact that 2024 marks a centenary of manufacturing in South Africa – and Ford is celebrating its 100 years in South Africa. Opportunities available in NEV space The NEV space is one that can open opportunities in unexpected ways, Dr Zulu noted, such as the “last mile” programmes that have rolled out across South Africa delivering goods to the consumers’ doors via scooters or motorbikes. This is particularly important in growing the township economy. Although a critical element, NEVs are not confined to passenger vehicles but will also impact public transport and freight and logistics, Dr Zulu said. South Africa exports the majority of its vehicles, so it needs to comply with the clean energy regulations set by it external markets. For example, Europe has set stringent regulations that have to be met by the automotive manufacturers: it will require 55% lower carbon-dioxide emissions from 2030, with a target of zero from 2035. Mobility Centre for Africa co-founder Victor Radebe delivered a thought-provoking talk asking are the legacy OEMs sleeping at the wheel in the face of disruptive innovation by front-runners such as Tesla and BYD. Using the work of academic and business consultant Clayton Christensen, Radebe dived into the concepts surrounding “disruptive innovation” noting that “it’s like a tidal wave that strips over established industries creating new markets, whilst leaving old ones in its wake.” Disruptive innovation starts humbly, often ignored or dismissed by established companies. But then it marches on, transforming the landscape and toppling giants, Radebe said. “Christensen’s The Innovators Dilemma explains why many established firms, despite their resources and expertise, find themselves in this predicament hesitating at the edge of innovation,” Radebe said, adding: “This is where legacy OEMs find themselves.” Rise of the NEVs The automotive manufacturing industry is currently experiencing a seismic shift driven by the electrifying rise of NEVs. “Legacy OEMs are finding themselves in the slow lane compared to speed stars like to Tesla and BYD.” This technological race is not just about who gets to the finish line first, but who can navigate the twists and turns of innovation without losing control, Radebe noted. One of the innovations of NEVs is that the manufacturers build most of their parts, whereas the biggest OEMs rely on a supply chain of multiple suppliers from across the globe. Radebe looked at the potential drivers for change: Another important element is that of the minerals required to make the batteries required by the NEVs. “If you look at the upstream supply chain, China controls the extraction of the of the raw materials. They control the processing of the raw materials.” The beneficiation of minerals is a hot topic in South Africa that will have to form part of a more in-depth negotiation. “The future outlook of the automotive industry will be shaped by those who dare to navigate the choppy waters of innovation in geopolitical, geopolitical uncertainties,” Radebe said. “Legacy OEMs need to embrace a bold strategy to protect their turf, whilst diving headfirst into the new technology and business models, partnerships, heavy investments in innovation, and a willingness to disrupt their own operations.” NAAMSA’s chief policy officer, Tshetle Litheko, brought the topic closer to home, discussing the NEV landscape and outlook in South Africa. NAAMSA represents the South Africa automotive manufacturing industry and the seven original OEMS in the country. NEVs, the next natural step Litheko noted that because of environmental pressures, the innovation and migrating towards NEVs is unavoidable – “it’s the next natural step”. South Africa currently produces 0.5% of the global production of cars. Through its South African Automotive Master Plan, it aims to produce 1% of the world’s cars by 2035. However, Litheko noted, the export markets that South Africa has are now looking to cleaner energy vehicles such as hybrids and EVs. So, the current production of vehicles with internal combustion engines will not be fit for purpose and South Africa will need to adjust its products accordingly. “That said, one of the biggest markets that we need to factor in is the 1.4 billion market in Africa – and that market is not about to migrate or evolve into these NEVs.” In the African market the production of cars is around two million, with South Africa producing a third of that. He then referenced India, with a similar population density to that of Africa, and pointed out that India currently produces almost eight million vehicles annually. “India is the biggest and fastest growing exporter of cars into South Africa (and by extension into Africa).” Taking a leaf out of India’s book, South Africa