President Ramaphosa Highlights EV Shift As Key Opportunity For South African Industries

President Cyril Ramaphosa said that the global shift from Internal Combustion Engines to Electric Vehicles (EVs) offers a massive opportunity for South African industrialization.

During the South African Auto Week at the Cape Town International Convention Centre in the Western Cape on Thursday, the president emphasized that as many of South Africa's major trading partners move quickly towards EVs, it is essential for the country to be part of this global supply chain.

Ramaphosa noted that this shift presents a great industrialization opportunity for South Africa and the region, especially within the framework of the African Continental Free Trade Area. He added that this transition would position South Africa as a forward-thinking, green economy and help the country become a global automotive hub.

He recognized that decarbonization poses challenges for the automotive sector but reassured that the government is committed to working closely with the industry to address these issues.

"The transition towards cleaner and more sustainable fuels – together with stringent regulations in key markets – puts a number of automotive firms and sub-industries in a vulnerable position. Even as the journey to net zero poses a challenge for the auto industry, there is at the same time immense opportunity," he said, SA News reported.

He added, "The local automotive sector needs to position itself to take advantage of the demand for electric vehicles, new energy vehicles and sustainable fuels. The transition to cleaner, more sustainable practices in the automotive industry is a priority for our government."

The automotive industry plays a vital role in helping South Africa meet its climate targets.

The president said that the government is committed to working closely with the private sector to encourage the production of New Energy Vehicles (NEVs) and develop the necessary infrastructure to support them.

He also mentioned that the Department of Trade, Industry and Competition, the National Treasury, and the Department of Mineral and Petroleum Resources are discussing how to implement the Electric Vehicle White Paper.

The discussion also involves making use of South Africa's critical minerals for producing new energy vehicles and their related value chains. It also includes producing batteries for battery electric vehicles and developing value chains in the green hydrogen fuel cell market.