The South African Automotive Masterplan [SAAM 2035] sets the objective of growing South Africa’s vehicle production to 1% of global output and aims to increase the annual export value of the South African automotive industry from approximately R201 billion in 2019 to R400 billion by 2035. The effective functioning of the logistics and infrastructure sector is paramount to maintain competitiveness, as expenses associated with shipping and transportation play a vital role to determine the competitiveness of our exports. Critical infrastructure for the South African automotive sector includes Transnet’s roll-on roll-off facilities which provide critical support for the efficient movement of vehicles and components via the port. This panel discussion will explore the role of Transnet in driving the growth and development of the automotive sector and outline key public-private partnerships to support this ambition.
An analysis of the impact of the trade arrangements enjoyed by South Africa provides overwhelming evidence that they substantively enhanced the domestic automotive industry’s exports to the various markets. In addition, two-way automotive trade flows have been secured, strengthened and enhanced while long-term trade relations have been stabilised. The current Economic Partnership Agreement (EPA) between the SADC group with the EU continues to underpin the relationship with the region. The EU has remained the domestic automotive industry’s top export region in 2023 with total automotive exports amounting to a record R147,1 billion along with total automotive imports amounting to R139,4 billion. The current SADC-EU EPA Review is important to address the transition to EVs in both South Africa and the EU in view of more flexibility towards the rules of origin requiring 60% local content in view of the lack of EV battery manufacturing in both markets. Opportunities presented by AGOA, which was implemented on 1 January 2001 by the US towards sub-Saharan African countries, include vehicles. The South African automotive industry is the major beneficiary of AGOA and substantial two-way automotive trade has taken place between South Africa and the US with automotive imports from the US increasing by 1 083,2% between 2001 and 2023, proportionally much more than exports of 497,4% over the same period. In 2023 the US was the domestic automotive industry’s second largest trading partner with exports comprising R29,9 billion and imports comprising R28,8 billion. It is therefore important for AGOA to be extended post September 2025 and for South Africa to remain eligible to enjoy the benefits under the Act.