{"id":13239,"date":"2025-03-17T12:14:06","date_gmt":"2025-03-17T13:14:06","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=13239"},"modified":"2025-03-17T14:41:35","modified_gmt":"2025-03-17T14:41:35","slug":"south-africa-is-making-moves-to-become-an-important-ev-manufacturer-in-the-future","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/south-africa-is-making-moves-to-become-an-important-ev-manufacturer-in-the-future\/","title":{"rendered":"South Africa is making moves to become an important EV manufacturer in the future"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

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By Yael Shafrir<\/span>, Raeesah Shaik,Nasm\u00e9 Puley, and Shirleen Ritchie.<\/em><\/p>\n

A year ago, <\/span>South<\/span> <\/span>Africa<\/span> <\/span>was mired in load shedding, with the importance and relevance of electric vehicles (EVs) far from the public imagination. <\/p>\n

How can a country that struggles to keep the lights on dedicate time and resources to building out an <\/span>EV<\/span> <\/span>future<\/span>?<\/p>\n

Fast forward a year, much has changed.  Power supply has stabilised and a statement increasingly doing the rounds in key policy and business circles is, \u201cSouth<\/span> <\/span>Africa<\/span> <\/span>should be a primary player in the <\/span>EV<\/span> <\/span>manufacturing space<\/i>.\u201d<\/p>\n

The reasons why are myriad, with recent <\/span>moves<\/span> <\/span>by the government accelerating a true export industrialisation opportunity that can have real implications for <\/span>South<\/span> <\/span>Africa<\/span>\u2019s trade and economic growth.<\/p>\n

South Africa has what it takes to become a global EV manufacturer<\/strong><\/p>\n

First, it\u2019s <\/span>important<\/span> <\/span>to take a step back.<\/p>\n

The automotive sector is crucial to the posture of <\/span>South<\/span> <\/span>Africa<\/span>‘s industry and its automotive manufacturing is mature especially relative to other African markets. <\/p>\n

A number of the world\u2019s largest auto original equipment manufacturers (OEMs) manufacture in <\/span>South<\/span> <\/span>Africa<\/span>, including BMW, Toyota, and Nissan.  <\/span><\/p>\n

Chinese auto manufacturers <\/span>are increasingly considering <\/span>South<\/span> <\/span>Africa<\/span> <\/span>as a manufacturing hub to access the rest of the African market. <\/p>\n

The work undertaken as part of the Automotive Production Development Programme (APDP), <\/span>a customs duty-based programme comprising rebates and refunds of the relevant customs duties, <\/span>has underpinned the government\u2019s policy approach to the sector.<\/p>\n

The APDP 1, focuses on “boosting production levels and job opportunities in the automotive sectors<\/i>“, whereas the APDP 2 aims “to build a globally competitive automotive industry that drives <\/span>South<\/span> <\/span>Africa<\/span>‘s economic growth<\/i>“. <\/p>\n

The ecosystem to support these manufacturers has evolved substantially over time.<\/p>\n

 <\/p>\n

In November 2023, the Department of Trade, Industry, and Competition published the <\/span>Electric Vehicles White Paper <\/span>(White Paper).  The paper acknowledges that the global automotive industry is \u201cundergoing one of the most seismic shifts in its nearly 150-year history<\/i>\u201d and provides <\/span>South<\/span> <\/span>Africa<\/span> <\/span>with a \u201cmajor industrialisation opportunity<\/i>\u201d to develop regional \u2018critical minerals to batteries\u2019 value chains.  The maturity of the country\u2019s auto manufacturing sector, its developed logistics infrastructure, and a complex mix of existing trade agreements with key economic centres and regions, all position <\/span>South<\/span> <\/span>Africa<\/span> <\/span>favourably as a potential <\/span>EV<\/span> <\/span>manufacturer<\/span>.<\/p>\n

Currently the mix of trade agreements includes i) Southern African Development Community (SADC), (ii) the SADC-  European Union\u2019s Economic Partnerships Agreement, iii) the African Growth and Opportunity Act with the United States, and iv) the African Continental Free Trade Area (AfCFTA). <\/p>\n

Automotive is among the sectors prioritised by AfCFTA, which has led to advanced work taking place by various stakeholders to map value chains across the continent.<\/p>\n

Among the 10 actions named in the White Paper to support the development of Southern African EV productive capacity are:<\/strong><\/p>\n