As a global supplier of a wide variety of raw materials, the fact South Africa does precious little to beneficiate these within our borders is an issue that has been haunting the halls of Government for many, many years and, despite vague promises, little has been done.
However, in his address at the recent SA Auto Week in Cape Town President Cyril Ramaphosa broached the subject and highlighted the importance this industrialization could have for the country – a statement welcomed by naamsa: The Business Council.
“Namsa is fully aligned with the need to embrace new energy vehicles and sustainable fuel technologies, and we are committed to positioning South Africa as a leader in this space,” says Billy Tom, President of naamsa. “We support the government's initiatives to foster the production of electric and hybrid vehicles and the necessary infrastructure developments to ensure South Africa remains competitive in the global market.
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Including critical mineral beneficiation for reproduction, including batteries and green hydrogen fuel cells, positions us to capitalise on emerging industrialization opportunities. Additionally, we welcome the President's announcement on the finalization of the comprehensive New Energy Vehicle policy guidelines, the inclusion of alternative vehicle technologies such as hybrids and plug-in hybrids and, very importantly, alongside incentives for manufacturers and subsidies for consumers is a crucial step towards the widespread adoption of cleaner and more sustainable vehicles.”
President Ramaphosa emphasized the growing confidence in South Africa's economy, with both local and international investors showing renewed interest.
“This is a positive signal for the automotive sector, and we look forward to leveraging this momentum to attract further investment and strengthen the industry's global standing.
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“The President rightly acknowledged the automotive sector as a significant contributor to South Africa's GDP and exports. This sector employs more than half a million people across the value chain, the industry's continued success in key markets such as the European Union, Africa and North America, reflects our commitment to innovation and competitiveness.”
Tom further commended the government's commitment to improving the operational performance of key sectors such as energy, freight and logistics, all of which have direct impacts on the automotive industry.
“Ongoing projects such as revitalizing the port of Durban and upgrading Gauteng, Gauteng, Eastern Cape railway line, are essential to our industry's continued success.”
During the panel discussions held at SA Auto Week, one discussion highlighted South Africa's slow progress in adopting hydrogen as an alternative fuel and emphasized the need for accelerated investment and policy support to unlock the potential of hydrogen as a sustainable energy source for the automotive sector, which is underpinned by the comprehensive development of refueling infrastructure.
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It was suggested pilot use case adoption be driven by opportunities such as the conversion of mining fleets.
Road freight industry leaders identified key challenges, including regulatory hurdles and the transition to sustainable practices. The panel underscored the need for improved infrastructure and collaboration to achieve fleet sustainable sustainability and grow the economy.
While acknowledging there were challenges in developing a robust battery chain with infrastructure challenges and competition, the panelists emphasized Africa must strategically develop parts of the battery value chain, leveraging its rich mineral reserves to compete globally and look to develop allied opportunities, such as fixed energy storage to create economies of scale to support localisation.
The SA automotive market faces affordability issues driven by low incomes and rising prices and Tom pointed to the excessive tax burden on a vehicle in South Africa being a root cause of the problems with luxury tax now being imposed on entry-level vehicles.
Colin Windell for Colin-on-Cars in association with
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