South African President Cyril Ramaphosa on Thursday reaffirmed the government's commitment to transforming the country's automotive industry, acknowledging both the challenges and opportunities it presents.
CAPE TOWN, Oct. 18 (Xinhua) -- South African President Cyril Ramaphosa on Thursday reaffirmed the government's commitment to transforming the country's automotive industry, acknowledging both the challenges and opportunities it presents.
Ramaphosa made the remarks when delivering a keynote address at the South African Auto Week, which runs from Oct. 15 to 18 in Cape Town, the legislative capital of South Africa, under the theme "Reimagining the Future, Together: Celebrating 100-Years of Automotive Heritage, Passion, Resilience, and Ingenuity."
The South African Auto Week is distinguished as Africa's leading and pre-eminent annual automotive thought leadership event, bringing together auto industry leaders, global original equipment manufacturers, vehicle component manufacturers and suppliers, international investors, policy-makers, law-makers, decision-makers, regulatory bodies, and journalists across the entire automotive value chain.
"This year marks a hundred years of vehicle manufacturing in South Africa," said Ramaphosa in his keynote address. "The auto sector continues to be one of the star performers of our economy. It makes a significant contribution to our gross domestic product."
He noted that last year, around 20 percent of local manufacturing value addition came from vehicle and component production, with the automotive industry accounting for approximately 15 percent of South Africa's total exports.
Ramaphosa also emphasized the sector's crucial role as a major employer, saying that "In 2023, the sector provided jobs for approximately 116,000 people in vehicle and component manufacturing, while nearly 400,000 were employed on the retail side in dealerships and repair shops."
The president addressed the global shift toward decarbonization, describing it as not only a fundamental challenge for the country's automotive industry but also an immense opportunity.
"Even as the journey to net-zero poses a challenge for the auto industry, there is at the same time immense opportunity," said Ramaphosa. "The local automotive sector needs to position itself to take advantage of the demand for electric vehicles, new energy vehicles, and sustainable fuels."
Ramaphosa stressed the government's priority to foster cleaner and more sustainable practices in the industry, noting the critical role the sector plays in achieving South Africa's climate targets. "We are committed to working hand-in-hand with the private sector to promote the production of new energy vehicles and the development of the necessary infrastructure to support them," he said.
"This is not just about creating a greener future but also about ensuring South Africa remains competitive in the global market. As many of our major trading partners rapidly shift towards electric vehicles (EVs), it is imperative that we remain part of this global supply chain," he added.
Ramaphosa underlined that this is a major industrialization opportunity for South Africa and the region, which "will position South Africa as a forward-thinking, green economy." He also underscored the government's commitment to reforming the freight sector, upgrading the logistics network, and developing a comprehensive electric vehicle policy with tax incentives for both manufacturers and consumers to drive the local growth of electric vehicles.
The South African government was committed to reforming the freight sector, refurbishing the country's logistics network, and developing a comprehensive EV policy with tax incentives for manufacturers and consumers to support the growth of EVs locally, he added. ■