Welcome to the 13th edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition and website at www.southafricanbusiness.co.za.
A special feature in this journal focusses on the vital focus on infrastructure that is seizing the attention of the political and business leadership of South Africa. This is not the arena of endless talk shops. Rather, 160 CEOs of some of the country’s most influential companies are rolling up their sleeves and trying to make things work better. The article looks at steps being taken by a combination of the public and private sectors to beef up the country’s railways, ports and energy network. Crime is also under the spotlight. As this journal goes to print, South Africa will ascend to the presidency of the G20, a singular honour and an opportunity for the country to put its best foot forward. A brief overview of each of the country’s provinces is also provided.
South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com. These unique titles are supported by a monthly business e-newsletter with a circulation of over 35 000. The Journal of Africa Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly.
OVERVIEWManufacturing:
OVERVIEWManufacturing: automotiveCarbon taxes present a challenge.As the South African automotive industry celebratedone hundred years of making cars in the country, twochallenges appeared on the legislative and politicallandscape: European carbon targets and a possiblerecalibration of policies by the US.The Carbon Border Adjustment Measurement of the EU will beintroduced in January 2026. For original equipment manufacturers(OEMs) in South Africa, the implications are great. The NationalCleaner Production Centre, a subsidiary of the Department of Trade,Industry and Competition (the dtic), has offered its services to OEMsto establish whether or not they are meeting the targets.Since 2000, the African Growth and Opportunity Act (AGOA)has afforded many African countries the right to export into the USalmost 7 000 products duty-free. This has been a big boost for OEMslike Mercedes-Benz which sends a lot of its vehicles to the US.In 2022, countries with AGOA status exported goods to thevalue of -billion into the US, with .2-billion of that attractingno duties. With the US and South Africa differing in their respectiveattitudes to the conflicts in the Middle East and Ukraine, there is achance that US policy-makers could withdraw South Africa’s status.On the other hand, the US is also likely to do less trade with Chinaunder President Trump and there may be additional opportunities inthe US if AGOA can be safely negotiated.Ford Motor Company started making cars in what was PortElizabeth in 1924. Today it makes engines in the same town, nowknown as Gqeberha, and vehicles in Pretoria.BMW Group has started making the BMW X3 as a plug-in hybridfor export at its Rosslyn Plant in Tshwane. Pretoria is also home toNissan. The Tshwane Automotive Special Economic Zone (TASEZ) is aproject of the Gauteng Province, the dtic and the City of Tshwane.The 520 963m² facility of Volkswagen South Africa in Kariega isone of four plants worldwide that makes right-hand-drive Polos butthe only one in the world that makes the Polo GTI.Both the Coega Special Economic Zone and the East LondonIndustrial Development Zone (ELIDZ) have areas dedicated toautomotive and automotive components manufacture and theAutomotive Industry Development Centre – Eastern Cape is focussedon growing the sector.ONLINE RESOURCESSECTOR INSIGHTSEZs have automotive zones.Ford makes engines inGqeberha, where it startedoperating in 1924.The national AutomotiveProduction and DevelopmentProgramme (APDP) has beenextended to 2035, 15 yearsbeyond its original expiry date.State support for the industryhas helped it thrive, butmanufacturers are expected toincrease local content levels.The industry itself is lookingto Africa for new markets andis urging national governmentto release policy guidelines onelectric vehicles. ■Automotive Industry Development Centre: www.aidc.co.zaNaamsa | The Automotive Business Council: www.naamsa.co.zaNational Association of Automotive Component and Allied Manufacturers: www.naacam.org.zaSOUTH AFRICAN BUSINESS 202568PHOTO: Ford Motor Company
ManufacturingAfrica beckons.The Secretariat of the African Continental Free Trade Area(AfCFTA) has announced that an adjustment fund to supportmanufacturing in Africa will start releasing funds in 2025. TheAfCFTA Adjustment Fund Corporation has raised -billionand is aiming for -billion to assist with issues that might ariseas countries across the continent drop protective tariffs. Grantsand concessions will be made available to mitigate shocks to localmanufacturing. The intention of AfCFTA is to make all of Africa a freetradearea, with intra-continental trade eventually attracting no tariffs.Several South African manufacturers have made forays intoother parts of Africa but logistical and legislative challenges havemeant that it has not always been plain sailing. AfCFTA representsa significant opportunity for the manufacturing sector. Exportsbetween African nations account for about 16% of Africa’s totalexports, compared to 49% in North America, 55% in Asia and 63% inthe EU.SECTOR INSIGHTA Medtech Masterplan hasbeen launched.The first shipment to leaveSouth African shores, pictured,was made under the GuidedTrade Initiative (GTI), a precursoragreement that allows smallquantities of goods to be traded.On board the MSC FlorianaVI, which left Durban boundfor Ghana on the last day ofJanuary in 2024, were electricalappliances, refrigerators andequipment relevant to thePHOTO: GCIS69 SOUTH AFRICAN BUSINESS 2025
