Jobs
UNSPLASH

South Africa's automotive industry could witness the loss of more than 100,000 jobs if more electric/hybrid vehicles are not manufactured, Mondli Gungubele, the Minister in the Presidency, warned Tuesday.

The minister cautioned if the automotive industry does not decarbonize and produce more electric/hybrid vehicles, the sector is in danger of losing thousands of jobs in the coming years. He also called on the country to consider the environmental and economic implications of climate change to achieve net zero emissions by 2050, Business Tech reported.

"If we don't move in pace with that call to new electric vehicles, no fewer than 100,000 jobs are under threat. In other words, in that sector, we lose our status as a stakeholder and trading partner in the sector beyond that period," said Gungubele.

"Jobs are not the only thing South Africa could lose, billions of rands in exports are on the line," he added.

Gungubele made these remarks during a portfolio committee meeting on Mineral Resources and Energy, adding that decarbonization has profound implications on the environment, economy, government, society, and jobs at large.

These remarks came as the South African car manufacturing sector faces an eminent downfall amid declining demand for cars that emit greenhouse gasses in Europe.

The committee's meeting was aimed at discussing South Africa's plans to transition to a more sustainable economy over the next five years. The plan includes investing in renewable energy sources and phasing out fossil fuels. Furthermore, it outlines spending of R1.5 trillion over five years, but there is currently an estimated funding gap of 44% or R700 billion.

The minister further noted it would also help mitigate the social and economic implications of the use of cleaner sources that could put thousands of jobs at risk.

"For instance, if you go to the auto industry, no less than 100,000 jobs are under threat there because Europe would have given us, if I'm correct, until 2030, that at a certain point in time they will not be actually buying cars that are not oriented to the new system," he added.

The European Union earlier set a deadline of 2030 for local vehicle exporters to decarbonize the sector, after which the EU will no longer import internal combustion engine vehicles assembled in South Africa.