South African President Cyril Ramaphosa has reaffirmed the government’s commitment to collaborating with the private sector in promoting the production of new energy vehicles and developing the necessary infrastructure to support them. This is reported by Prensa Latina, a partner of TV BRICS.

President Ramaphosa emphasised the need for the local automotive sector to position itself to capitalise on the growing global demand for electric vehicles (EVs), new energy vehicles, and eco-friendly fuels. He highlighted that the Department of Trade, Industry, and Competition, along with the National Treasury and the Department of Mineral and Petroleum Resources, are in discussions to implement the Electric Vehicle White Paper, which focuses on enhancing the value chains of critical minerals.

The plan also includes the development of battery manufacturing and the expansion of the clean hydrogen fuel cell market. Ramaphosa confirmed that work is underway to finalise a comprehensive strategy that considers the opportunities within the sector, including incentives for manufacturers and tax rebates or subsidies for consumers to accelerate the adoption of electric and new energy vehicles.

“This is not just about creating a greener future; it’s about ensuring South Africa remains competitive in the global market,” Ramaphosa stated, noting that this transition represents a significant industrialisation opportunity for the country and the region, particularly within the context of the African Continental Free Trade Area (AfCFTA).

Ramaphosa stressed the importance of the automotive industry to South Africa’s economy, pointing out that it accounts for approximately 15 per cent of total exports, opens doors to key markets in the European Union, Africa, and North America, and employs around 116,000 people. He also noted that international companies are significant investors in the South African market, generating an average revenue of over US$450 million annually.

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