Latest news with #Mvoko
IOL News
08-07-2025
- Automotive
- IOL News
Volkswagen deal offers hope for Eastern Cape as Mercedes-Benz considers South Africa exit
Mercedes-Benz has temporarily halted production at its East London plant. The factory in East London plays a pivotal role in the province's economy, exporting nearly 90% of its vehicles to the US. Image: Supplied Banele Ginidza Volkswagen South Africa's (VWSA) recent agreement to become the sole global manufacturer of the VW Polo—producing both left and right-hand drive models for all markets—offers a beacon of hope for the struggling Eastern Cape Province. This announcement comes on the heels of alarming news from Mercedes-Benz South Africa (MBSA), which has indicated that the newly imposed 30% tariffs on exports to the United States may force the company to exit the country entirely. During a briefing by the Eastern Cape and Northern Cape Provincial Treasuries, acting Premier Mlungusi Mvalo expressed grave concerns about the potential departure of MBSA. Mvoko said Mercedes Benz had indicated that it would likely leave the country with the composition of the 30% tariffs, adding that this would be devastating for the province's economy. The factory in East London plays a pivotal role in the province's economy, exporting nearly 90% of its vehicles to the US. "You cannot imagine East London without Mercedez Benz. MBSA exports almost 90% of their cars to the US. In our interaction with MBSA, they have said that given these tariffs, it proves it will be difficult," Mvalo 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 Next Stay Close ✕ Ad loading "They made it clear that with the tariffs, they think they might have to rethink our discussion with them. We asked them to think about looking for other markets because the US market is not guaranteed and it is a difficult market. We are hoping that they will consider. "We are anticipating that MBSA might leave South Africa, but we are hoping that the discussion we have had at international level, as we had a delegation going to Stuttgart, that might save it. "Because if MBSA goes, even the East London Special Economic Zone would be gone because half of what the companies established there are suppliers to MBSA. And I am not talking about all those around East London. The livelihood of the whole East London, King Williams Town, is dependent on MBSA." The rampant anxiety surrounding MBSA's future escalated as Mvalo confirmed that the automotive sector, which accounts for a significant portion of the province's economic activity, might be facing dire challenges. "We have also lost Goodyear Tyres just a month ago. This is the second tyre manufacturing company that we have lost, as you know we lost Bridgestone Tyres last month. It's also going to have a ripple effects on all the industries because as you now that the Eastern Cape hosts the majority of the suppliers in the country in the automotive sector. About 80% of suppliers are in the Eastern Cape, you can imagine what will happen," Mvoko said. "Fortunately, VW is still with us with a new deal of manufacturing Polo for the whole world. So it just saved us but you will never know with things. So things are not very good with us. It is going to contribute to the high unemployment rate because now things are really challenging to say the least." Mvoko said the agriculture sector was not performing as anticipated as the second tier economy. Meanwhile, the Motor Industry Staff Association (MISA) said the decision by US President Donald Trump to impose 30% tariffs on the export of vehicles, components, tyres and parts exported from South Africa to the United States will kill any possible economic growth in South Africa. Martlé Keyter, MISA's CEO for operations, said the retail motor industry was already struggling amidst the uncertainty of tariff percentage increases. Keyter said the union was experiencing an increase in employers closing their doors, restructuring in terms of Section 189 of the Labour Relations Act or embarking on short time. According to Tiekie Mocke, manager of MISA's legal department, the negative impact on exports forced an employer within the retail motor industry to cut a five-day workweek back to a four-day workweek, effectively leaving employees out of pocket with at least one week's income per month. "This was done pro-actively to prevent retrenchments but cannot continue indefinitely," Mocke said. BUSINESS REPORT
The Citizen
19-06-2025
- Politics
- The Citizen
Eastern Cape floods will not be used as a get-rich-quick scheme, says acting premier
The damage of the floods is estimated to be around R4 billion. Eastern Cape Finance MEC and Acting Premier Mlungisi Mvoko has cautioned that funds allocated to assist victims of recent devastating floods should not be misused for personal gain. A memorial service was held in Decoligny village, Mthatha, on Thursday following the loss of more than 90 lives due to heavy rains that swept across the province last week. The floods, which struck the OR Tambo and Amathole District Municipalities, have left many families displaced. Temporary shelters have since been set up, and essential items such as meals, clothing and hygiene products are being distributed to affected communities. Eastern Cape floods: Government pledges support Speaking at Thursday's memorial, Mvoko reaffirmed government's commitment to supporting those impacted by the disaster. 'Premier Oscar Mabuyane said this day shouldn't be for long speeches, but he said I should leave words of hope and the government's commitment in helping the victims of the disaster,' he said. The MEC highlighted the severe impact the floods have had on infrastructure across the province. 'The relentless rain, roaring winds and floodwaters have taken their toll not just on our infrastructure, but also on our people, our communities and our collective sense of safety. ALSO READ: Eastern Cape floods: Police vow to 'wake morals' of looters 'The floods have tested us, but rest assured, we will rebuild the affected communities. 'More than 4 300 people have been affected by the recent disaster in our province. Households are destroyed. More than 4 200 households have been destroyed.' According to Mvoko, 1 963 households have suffered partial roof damage. Additionally, over 400 schools have been affected, with more than 1 500 classrooms damaged – impacting over 40 000 pupils. 'We have not listed damaged roads, bridges, hospitals and water infrastructure, but for now we estimate the damage to be around R4 billion.' Watch the memorial below: 'Get-rich-quick scheme' With the Eastern Cape officially declared a disaster zone, Mvoko condemned those attempting to exploit the tragedy for personal or financial gain – a possible reference to reports of 'water mafias' obstructing the work of humanitarian organisation Gift of the Givers. 'We have observed acts of cruelty where individuals want to benefit from this disaster…. People want to take advantage of disaster zones. They want to be the ones who benefit.' He stressed that corruption in the disbursement of aid would not be tolerated. READ MORE: Eastern Cape floods: Police vow to 'wake morals' of looters 'This tragedy should not and will not be used as a get-rich-quick scheme, where there are people who want to see money from the disaster. 'Any funds dedicated to it will be used prudently to help our people rebuild their lives. 'We ask representatives of government that when the money is received, which is meant to help people, it should be used for what it is intended for.' Mvoko further urged individuals to refrain from misusing or hoarding relief supplies, emphasising that food parcels should not be taken for themselves. Eastern Cape floods death toll Human Settlements Minister Thembi Simelane described the disaster as 'unprecedented,' with the current death toll at 92. 'We are deeply saddened by the horrific human tragedy,' she said. 'We don't want to count more numbers of people who have departed, but we appreciate that it is important for families to find closure,' Simelane continued. The minister said that efforts to restore water and electricity services are ongoing in the affected parts of the Eastern Cape, excluding the areas still too wet for access. 'The Department of Home Affairs is still on site giving assistance to all community members who need their paperwork,' Simelane added. She further confirmed that some pupils had returned to school. Additionally, public infrastructure, such as bridges, are being rebuilt. NOW READ: 'This is a catastrophic disaster': Ramaphosa visits devastated families after deadly EC floods
