As South Africa grapples with persistent loadshedding, Trade, Industry, and Competition Minister Ebrahim Patel has unveiled a comprehensive White Paper outlining an electric vehicle (EV) roadmap for the nation. The document also details a suite of policy interventions tailored to reshape the automotive industry.
During a media briefing on Monday, 4 December 2023, Minister Patel highlighted that the White Paper is the result of constructive engagement with various stakeholders, including government, industry, and labour.
It aims to establish a viable and sustainable transition path for the automotive sector.
The primary objective of the White Paper is to guide the auto industry’s shift from primarily producing Internal Combustion Engine (ICE) vehicles to a dual platform, incorporating EVs into the production and consumption mix alongside ICE vehicles by 2035.
“This vision is aligned with the foundational objectives outlined in the SAAM, a strategic framework implemented from 2021 to shape the nation’s automotive industry,” Patel said.
Additionally, Patel explained that it also aligns with changing demand in export markets and South Africa’s commitment to reducing greenhouse gases.
“The compelling reasons behind this transition are numerous. Foremost is the urgent need to reduce greenhouse gas emissions and combat climate change. Additionally, we recognise the pivotal role the automotive industry plays in South Africa’s economy, as a major employer and a driver of economic growth. This White Paper presents a comprehensive, coordinated approach to the transition to minimise the perils of an uncoordinated transition. It draws on extensive international and domestic research and consultations, spanning from 2019 to 2023,” explained the Minister.
Furthermore, he said it is grounded in the principle that decarbonisation should not lead to de-industrialisation but rather be leveraged for growth, deepening the automotive value chain, fostering growth of the local industry, and ensuring the transition aligns with economic priorities.
Patel also said successful management of the transition is a pro-growth and pro-investment strategy.
“The success of the transition requires all stakeholders to continue to work collaboratively to navigate this challenging transition and transform it into an opportunity for growth, sustainability, and economic vitality,” the Minister said.
Minister Patel shared optimism regarding the introduction of the first electric vehicles in South Africa as early as 2026. The recent approval of the White Paper by Cabinet signifies the country’s commitment to joining the global shift from internal combustion engines to new technology vehicles.
Addressing the Post Cabinet briefing on Thursday, 30 November 2023, Minister in the Presidency Khumbudzo Ntshavheni said the policy supports investments in the development and expansion of new and existing manufacturing plants to support the production of electric vehicles in the country.
“South Africa’s automobile industry plays a critical role in economic growth and supports thousands of jobs, and the country is also endowed with mineral resources that position it to become a key and strategic player in EV value chains,” the Minister said.
The White Paper is the culmination of substantial research and engagement over the last number of years and follows the publication of a Green Paper in 2021, extensive industry consultation (assemblers, component makers and organised labour), and consideration of public comments, all of which helped to shape the policy actions to be taken.
Patel also highlighted the Green Paper on the advancement of new electric vehicles and battery-electric vehicles in South Africa. The draft Green Paper seeks to develop a framework upon which a comprehensive and long-term automotive industry transformation policy on new EVs can be developed.
What are your thoughts on the above mentioned? Share your views in the comment section below.
