South Africa positions itself as a global hub for new energy vehicles, says Ramaphosa
Image: Willem van de Putte
President Cyril Ramaphosa says that with the electric vehicle white paper and the incentive programme, the country has committed to a stable, predictable and supportive framework for companies to be able to invest and grow in South Africa.
Speaking at the BMW plant in Rosslyn, Pretoria, with the theme 'A strategic vision for South Africa's automotive future', he was quick to praise the company for the work they have been doing.
BMW South Africa manufactures the X3 range of SUVs, exporting them to more than 24 different countries around the world.
More importantly, they are the sole manufacturer for the BMW X3 plug-in hybrid.
Transformation
'We are on an exciting journey of transformation, change, and development in numerous ways, and your efforts have been pivotal in driving this transformation forward.
'The automotive sector serves as the cornerstone of our industrial strategy, accounting for 4.9% of our GDP and directly supporting over 115 000 manufacturing jobs. Its impact extends far beyond these figures, affecting the livelihoods of more than half a million individuals throughout the value chain,' he said.
'South Africa stands as the 22nd largest vehicle exporter in the world, with key markets including the European Union, the United States, the United Kingdom, and several other countries. Moreover, the African continent, particularly within the SADC region, is emerging as an increasingly important export market.
'We have successfully positioned ourselves as a globally competitive hub for automotive manufacturing, and the BMW Group has played an essential role in this significant journey.'
Referring to New Energy Vehicles, Ramaphosa said: 'The transition to green mobility and the electrification of vehicle production aligns with our global commitment to reducing emissions and supporting the shift towards a low-carbon, climate-resilient economy, and we are proud to be part of this important movement.
Next
Stay
Close ✕
Ideally positioned
'We are truly encouraged by the significant milestones achieved by the BMW Group. As the shift towards battery electric vehicles, plug-in hybrids, and hydrogen mobility gains momentum, South Africa is ideally positioned as a vital global manufacturing hub for the future of mobility.
'We are dedicated to creating an enabling regulatory and policy environment that facilitates innovation and creativity, allowing companies like BMW to play a leading role in this sector.
'Through initiatives like the Automotive Production Development Program, the recently introduced Electric Vehicle White Paper, and an accompanying incentive program, we are committed to establishing a stable, predictable, and supportive framework that encourages companies to invest, localise, and grow in South Africa.'
Opportunity
Ramaphosa added that the transition to NEVs offers an opportunity for the local component manufacturing sector, which has primarily focused on internal combustion engine (ICE) components.
'Given our substantial reserves of critical minerals, we have the potential to become a hub for processing and refining these minerals extracted from South African soil. Our goal is to enhance their value, allowing us to export finished products rather than just raw materials.
We are in the process of finalising targeted incentives aimed at promoting battery cell localisation, manufacturing electric vehicle components, advancing clean mobility initiatives, and fostering research and design - all of which are essential for our growth in this sector,' he said.
Trump tariffs
Touching on the increased tariffs announced by US President Donald Trump, he admitted that it would have a huge impact, but failed to elaborate.
'The United States is a key market for our vehicle exports, and it further underscores the need for us to diversify our export base and to accelerate domestic value creation as well.
As we navigate the challenges of higher tariffs, it's crucial for us to keep our eyes and ears open to explore new markets for our vehicles. While it's encouraging that the X3 is being exported to Europe, we also need to focus on expanding into the African market.'
Speaking to the employees, the President said that the plant was a vote of confidence in their abilities.
'The production locally of the BMW X3 plug-in hybrid is a symbol of trust, a trust in the skills all of you have and a vote of confidence in our partnerships and our potential,' he concluded.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
42 minutes ago
- IOL News
Ramaphosa says South Africa will engage US over new tariffs as trade challenges loom
President Cyril Ramaphosa reiterated that South Africa's trade relations with the US have historically been complementary in nature. Image: Itumeleng English / Independent Newspapers Banele Ginidza President Cyril Ramaphosa has underscored the country's commitment to maintaining market access in the face of the United States' recent decision to impose a 30% tariff on South African imports. This significant shift in trade policy highlights the urgency for South Africa to navigate increasingly turbulent international trade waters and adapt its export strategies. In his latest newsletter on Monday, Ramaphosa articulated a dual approach: not only will the government engage with the US to ensure mutually beneficial trade relations, but it will also accelerate the diversification of its export markets by boosting intra-African trade. Recognising the US as South Africa's third-largest trading partner, Ramaphosa acknowledged the measure's potential to disrupt industries heavily dependent on exports to the US, thereby affecting thousands of jobs and the country's fiscal stability. "Our foremost priority is protecting our export industries. As government, we have been engaging the United States to enhance mutually beneficial trade and investment relations. All channels of communication remain open to engage with the US," Ramaphosa said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Last month, US President Donald Trump said the sweeping tariffs will apply to 'any and all South African products sent into the United States,' and were being imposed outside of any sectoral trade deals. In a letter dated July 7, Trump said the move was 'necessary to correct the many years of South Africa's Tariff, and Non Tariff, Policies and Trade Barriers,' blaming Pretoria for what he called 'unsustainable Trade Deficits against the United States.' However, Ramaphosa reiterated that South Africa's trade relations with the US have historically been complementary in nature. He said South African exports did not compete with US producers and did not pose a threat to US industry. "Largely, our exports are inputs into US industries and therefore support the United States' industrial base. South Africa is also the biggest investor from the African continent into the US, with 22 of our companies investing in a number of sectors including, mining, chemicals, pharmaceuticals and the food chain," he said. "South African imports ultimately benefit US consumers in terms of both choice and cost. By way of example, citrus production is counter-seasonal and does not pose a threat to US production. "Furthermore, production by US companies has been on the decline for a number of years as yhe US sector grapples with low yields, citrus greening disease, and other factors unrelated to competition from imports. Imports from South Africa, the world's second largest citrus exporter, have filled a gap and contributed to stable supply and prices for US consumers."
Eyewitness News
3 hours ago
- Eyewitness News
SA's economy in state of emergency, says the ANC
JOHANNESBURG - The African National Congress (ANC) has categorised the country's economy as being in a state of emergency. This came to light as the party's National Executive Committee (NEC) concluded its four-day meeting at the Germiston Civic Centre on Monday. ALSO READ: ANC wants communities to participate in councillor nominations The ANC's highest decision-making body in between conferences has been discussing all issues from the State of the Government of National Unity (GNU), United States (US) tariffs and local election preparedness. In his closing address, ANC President Cyril Ramaphosa said the organisation remains concerned about the State of the economy. 'We also characterise, the state of our economy as being in a state of emergency that requires drastic action. Our focus on an inclusive and resilient economy is important as we begin this month of August, women's month. The financial and economic inclusion of women is vital to the empowerment of women in our country with the view of achieving gender equality.' ANC DECRIES US 30% TARIFF ON EXPORTS The ANC said the ongoing debacle over United States (US) tariffs shows the need for the country to build a resilient economy and expand to other markets. The US has slapped South Africa with a 30% tariff on all its export goods. The tariffs are set to officially come into effect on Friday unless a deal can be reached with Washington. The ANC NEC has described the US tariffs as punitive; however, it has not said what South Africa is being punished for. Ramaphosa said the party is hopeful a deal can be reached with the country's second largest trading partner. However, Ramaphosa said government has not put all its eggs in the US basket. 'At the same time, we must invest in the implementation of the African Continental Free Trade area in diversifying our export markets. DTIC (Department of Trade, Industry & Competition) is already working on a number of interventions to try and support and assist various exporters of products that come from our country.' Ramaphosa has acknowledged setting up new export value chains will take time.
Daily Maverick
5 hours ago
- Daily Maverick
US tariff decision means SA must adapt quickly in a turbulent trade environment
While all channels of communication remain open to engage with the US, the international trading system is changing and complacency will not serve us – building resilience is imperative. The decision by the US to impose a 30% tariff on South African imports highlights the urgency with which we have to adapt to increasingly turbulent headwinds in international trade. The US is South Africa's second-largest trading partner by country and these measures will have a considerable impact on industries that rely heavily on exports to that country and on the workers they employ, as well as on our fiscus. Domestic sectors such as agriculture, automotive and textiles have historically benefited from duty-free access to the US market under the African Growth and Opportunity Act (Agoa). Our trade relations have historically been complementary in nature. South African exports do not compete with US producers and do not pose a threat to US industry. It remains our aspiration that this should continue. Largely, our exports are inputs into US industries and therefore support the US' industrial base. South Africa is also the biggest investor from the African continent into the US, with 22 of our companies investing in a number of sectors including, mining, chemicals, pharmaceuticals and the food chain. South African imports ultimately benefit US consumers in terms of both choice and cost. By way of example, citrus production is counter-seasonal and does not pose a threat to US production. Furthermore, production by US companies has been on the decline for a number of years as the US sector grapples with low yields, a citrus greening disease and other factors unrelated to competition from imports. Imports from South Africa, the world's second-largest citrus exporter, have filled a gap and contributed to stable supply and prices for US consumers. As government, we have been engaging the US to enhance mutually beneficial trade and investment relations. All channels of communication remain open to engage with the US. Our foremost priority is protecting our export industries. We will continue to engage the US in an attempt to preserve market access for our products. We must also accelerate the diversification of our export markets, particularly by deepening intra-African trade. Reducing overdependence on certain markets is a strategic imperative to build the resilience of our economy. With a view to helping our producers and exporters aggressively explore alternative markets, we have established an Export Support Desk to assist affected producers. We will in due course be announcing the modalities of a support package for companies, producers and workers that have been rendered vulnerable by the US tariffs. This intervention will also play a key role in guiding industries looking to expand into new markets in the rest of Africa, Asia, the Middle East and markets we already have trade agreements with. Strengthening regional value chains will be key to building resilience for our export markets in the longer term. Much as strengthening and establishing alternative value chains will take time, this moment presents us with an opportunity to push forward with the implementation and expansion of the African Continental Free Trade Area (AfCFTA). Reducing overdependence on certain markets is a strategic imperative to build the resilience of our economy. It will also enable us to expand the frontiers of opportunity for South African businesses, goods and services. In the coming months we will be scaling up our trade missions into new markets in Africa and beyond, as well as the National Exporter Development Programme whose aim is to grow the pool of export-ready companies. It is important to understand that South Africa is not alone in facing high tariffs from the US. A number of export-reliant developed and developing economies, including several on the continent, are also grappling with these measures. The international trading system is changing. Complacency will not serve us, and building resilience is imperative. As government we remain committed to ongoing engagement with the US and building trade resilience. DM This is the President's weekly letter to the nation, released on Monday.
