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The regional source of transitional minerals, a willing workforce, and the country’s presidency of the G20 combine to create an invaluable opportunity to future-proof South Africa’s economy, while boosting employment and increasing industrial opportunities presented by South Africa transitioning to manufacturing electric vehicles. - Hiten Parmar, The Electric Mission executive director.

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Sizwe sama Yende

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South Africa’s automotive companies must transition to manufacturing electric vehicles or face having no market in Europe and the United Kingdom.

EU countries and the UK have enacted laws to phase out combustion-engine vehicles by 2035 and 2030 respectively.  

This is a measure to reduce tailpipe carbon emissions associated with petrol and diesel vehicles. Electric vehicles (EV) produce zero tailpipe emissions even though there are emissions in their production. However, that is minuscule compared to what gas vehicles contribute to global warming.

According to Hiten Parmar, executive director of non-profit organisation - The Electric Mission –  South Africa’s status as G20 Presidency presented an opportunity for the automotive sector to make that transition from to electric vehicles.

 “A large majority (60%) of South Africa’s vehicle exports are absorbed by Europe and the United Kingdom,” Parma said.

“In order for South Africa to reach the ambitions of the South African Automotive Masterplan 2035, the local auto manufacturing industry must rapidly transition to electric vehicle production. As a leader in the Southern African Development Community region, South Africa has strong opportunities through its G20 presidency to demonstrate the benefits of the sustainable industrialisation in the region an realisation of the Sustainable Development Goals,” he added.

Parma said that President Cyril Ramaphosa hosted the EU Commission President, Ursula von der Leyen and the European Council President, Antonio Costa, at the 8th South Africa-EU Summit last week.

To highlight just how much of a valued trade partner the EU is to South Africa, the SA-EU summit was preceded by the G20 Summit of Foreign Ministers, Parma said, where South Africa’s leaders emphasised the need for greater urgency in achieving Sustainable Development Goals.

These goals included a focused approach to harnessing transitional minerals for inclusive growth and development and the efficient financing of the Just Energy Transition.

“The statements and sentiments expressed at the G20 Foreign Ministers Summit highlight the requirement for vision and rapid action in ensuring South Africa has the implementation of the Just Energy Transition where electric vehicles are one of the focus pillars,” Parmar said.

“The regional source of transitional minerals, a willing workforce, and the country’s presidency of the G20 combine to create an invaluable opportunity to future-proof South Africa’s economy, while boosting employment and increasing industrial opportunities presented by South Africa transitioning to manufacturing electric vehicles.”

Parmar said that the Just Energy Transition's successful implementation would only be possible with an integrated approach, which included the entire value chain, from raw materials to final product, considering the requirements of industry, the labour force, and the market.

He said that electric mobility was South Africa’s opportunity to build off the African-Continental Free Trade Agreement with neighbouring countries for the beneficiation of transitional minerals.

Parmar said that this would have far-reaching implications for economic growth, and provide significant trade opportunities, especially in international exports, while building a competitive and future-proof automotive and energy industry.

“The economic impact of a decline of exports for South African produced vehicles is a huge risk to the largest manufacturing sector of the country,” Parmar added.