South Africa’s R1 Billion Investment to Boost Local Electric Vehicle Production
South Africa will invest R1 billion to support local production of electric vehicles and their batteries, aiming to transform the automotive industry by 2035. The initiative seeks to enhance investment in manufacturing and critical minerals, expecting to attract R30 billion from the private sector.
South Africa has announced a substantial investment of R1 billion to bolster local production of new energy vehicles (EVs) and their batteries, as reported by the national treasury. This initiative underscores the nation’s commitment to transitioning its automotive sector, which is the largest in sub-Saharan Africa and accommodates renowned manufacturers such as Toyota, Ford, and Volkswagen. The government aims to stimulate increased investment in EV production through strategic incentives and policy measures.
In 2023, South Africa introduced an Electric Vehicles White Paper detailing its goal to diversify the automotive industry, moving from traditional internal combustion engine vehicles to include a significant proportion of electric vehicles by the year 2035. Furthermore, the national treasury outlined plans for the department of trade and industry, in collaboration with the department of mineral resources, to establish a regional strategy for critical minerals, essential for manufacturing EV batteries and solar panels, although timelines were not specified.
The R1 billion allocation over the medium term is part of a broader industrial development support program designed to enhance investment in infrastructure across targeted manufacturing sectors, including automotive manufacturing. The treasury emphasized that this incentive is intended to increase local assembly and production of new-energy vehicles and related projects, thereby boosting operational efficiency within the sector. This initiative is projected to attract R30 billion in private sector investment, enhancing South Africa’s position in the burgeoning EV market.
In conclusion, South Africa is making significant strides towards enhancing its local electric vehicle production through a R1 billion investment, aimed at fostering a shift in the automotive industry’s focus. By establishing an industrial development support programme and implementing a strategy for critical minerals, the government intends to attract further private sector investment. This initiative aligns with the country’s broader goals to transition to a sustainable automotive future by 2035.
Original Source: techcentral.co.za
