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South Africa’s Vehicle Market Proves Resilient as Affordability Reshapes Demand

Location: Business
  • Passenger vehicle sales reached 114,517 units in Q1 2026, with year-on-year growth moderating to 12.6%
  • Chinese brands account for more than 19% of new passenger and light commercial vehicle sales nationally
  • Hybrid vehicle interest rose to 39%, reinforcing hybrids as South Africa’s primary pathway in the shift toward electrified vehicles

South Africa’s passenger vehicle market remained resilient in the first quarter of 2026, but demand is evolving. Rising affordability pressures, higher fuel costs, the growth of Chinese brands and shifting powertrain preferences are reshaping the automotive landscape.

According to TransUnion’s Q1 2026 Mobility Insights Report, passenger vehicle sales reached 114,517 units in Q1 2026, slightly higher than the 114,246 units recorded in Q4 2025. Year-on-year (YoY) growth eased to 12.6%, down from the stronger performance seen during parts of 2025, but demand remained elevated despite a more uncertain macroeconomic environment.

A Stronger Start, But Growing External Pressures

The report, which provides a first quarter overview, indicates that South Africa entered 2026 on a stronger economic footing. This was supported by easing inflation, lower interest rates over the previous year, reduced load-shedding, and improved financial conditions.

However, rising geopolitical tensions in the Middle East and the associated oil price shock have heightened downside risks. In March 2026, inflation increased from 3.1% to 4.0% in April 2026, while the Monetary Policy Committee (MPC) recently raised the prime lending rate by 25-basis points in May 2026. Combined with higher fuel and transport costs, these factors are expected to place renewed pressure on affordability and consumer spending.

“Vehicle demand has not collapsed, but the market is moving into a more selective phase,” said Ayesha Hatea, director of research and consulting at TransUnion South Africa. “Consumers are still buying vehicles, but affordability is no longer only about the purchase price. Fuel costs, financing costs, insurance, servicing, and total cost of ownership are becoming central to the decision.”

Residual Value and the True Cost of Ownership

The report found that residual values are becoming an increasingly important component of vehicle affordability. As finance terms extend beyond six years for many buyers, depreciation and resale performance play a growing role in ownership economics, giving brands that retain value more effectively a competitive advantage.

The shift towards longer financing terms and the use of balloon structures reflects a growing focus on monthly affordability and cash-flow flexibility. However, this trend also increases exposure to residual value risk. Where vehicle values underperform expectations, consumers may face refinancing pressure or negative equity at trade-in, making used vehicle market performance an increasingly critical consideration.

Chinese Brands Reshape the Competitive Landscape

One of the most notable structural shifts is the continued rise of Chinese automotive brands. Chinese car sales grew by 75% YoY in Q1 2026, significantly outpacing traditional OEM growth of 2% and the broader passenger and light commercial vehicle (LCV) market growth of 12.7%. As a result, Chinese brands accounted for more than 19% of new passenger and LCV sales nationally, meaning nearly one in five new vehicles sold in South Africa was from a Chinese manufacturer in Q1 2026.

The shift is no longer driven solely by entry-level pricing. Chinese brands are increasingly competing on technology, features, fuel efficiency, range, warranty offerings, and perceived long-term value. On a combined portfolio basis, Chery Group, including Chery, Jetour, Omoda, and Jaecoo, recorded combined sales of 16,094 units in Q1 2026, positioning itself as a top three automotive player.

“Chinese brands have moved beyond the role of price disruptors. They are becoming structural industry players, influencing dealer networks, financing ecosystems, ownership perceptions, and the wider discussion around localisation and industrial competitiveness,” said Hatea.

Diverging Trends Across New and Used Markets

The new and used vehicle markets continued to show differing trends. NaTIS data indicates that new vehicle registrations increased by 11.6% YoY in Q1 2026, marking a sixth consecutive quarter of double-digit growth. In contrast, used vehicle registrations increased by 2.6%, suggesting a modest recovery in the secondary market, although it still trails the stronger momentum seen in new vehicle sales.

The used-to-new registration ratio declined to 2.3 in Q1 2026, the lowest level recorded over the reporting period. While used vehicles still make up the majority at 69% of total registrations, the share of new vehicles has risen to 31%, up from 23% in Q4 2025. This shift has been supported by favourable pricing dynamics, with new vehicle inflation falling to 0.8%, while used vehicle prices remained in deflation at -1.3%.

Confidence Rises, But Caution Remains

Dealer sentiment also reflects the stronger demand environment. New vehicle dealer confidence increased to 67 in Q1 2026, its highest level in 13 years. However, the report cautions that increasing fuel costs, inflation risk, and rising operating expenses could create more challenging conditions in the quarters ahead.

Forward-looking consumer data remains constructive. TransUnion’s Consumer Pulse Survey found that consumers likely to purchase a vehicle in the next few months increased from 19% in Q4 2025 to 22% in Q1 2026. Short-term purchase intent is strongest amongst younger consumers, with 26% of Gen Z and 24% of Millennials indicating plans to buy.

A Gradual Shift in Powertrain Preferences

Powertrain preferences are also evolving. Internal combustion engine vehicles remain the most popular choice, preferred by 49% of consumers in Q1 2026. However, interest in hybrid electric vehicles has grown significantly to 39%, up from 30% in Q4 2025, making hybrids the leading electrified option. Interest in both battery electric vehicles and plug-in hybrids also increased, with each reaching 26%.

“Hybrids are emerging as a practical transition pathway for South African consumers. They offer fuel savings and lower running costs without full dependence on charging infrastructure, which makes them relevant in a market where affordability and operating certainty remain critical,” said Hatea.

A Market Entering Its Next Phase

While domestic demand continues to support the industry, passenger vehicle exports remain under pressure amid trade uncertainty, geopolitical disruption, protectionism, and changing decarbonisation requirements.

“The South African automotive market is not reverting to its previous structure. The next phase will be defined by affordability, value, access to finance and how effectively industry players respond to evolving consumer behaviour,” said Hatea.

Read moreSouth Africa’s Vehicle Market Proves Resilient as Affordability Reshapes Demand

Phala Phala: Governing South Africa Must Be Given Top Priority

Location: News

(Budget Vote Debate: Presidency) President Cyril Ramaphosa should deal with the Phala Phala matter swiftly and honestly so that the focus can shift to what should be the top priority in the interest of all South Africans: properly governing South Africa. Once this has happened, South Africa’s international relations policy should urgently be addressed. The […]

The post President must play open cards about Phala Phala so that governing South Africa can be top priority appeared first on Freedom Front Plus.

Read morePhala Phala: Governing South Africa Must Be Given Top Priority

Affordability Drives South Africa’s Strongest New Car Sales in Over a Decade

Location: Business
  • Passenger car sales reached 114,246 in Q4 2025 (up 15.3% year over year), bringing the full-year total to 422,103 – the highest since 2014
  • Chinese brands now account for over 17% of total sales, signalling a structural shift in consumer buying behaviour
  • Younger buyers and affordability-led demand continue to drive momentum as high-income demand normalises

South Africa’s automotive market closed 2025 at its strongest level in more than a decade, supported by easing interest rates, improving vehicle pricing, and a decisive shift in how consumers evaluate vehicle affordability. While headline sales reflect a clear recovery, underlying patterns reveal a market increasingly shaped by value, sharper segmentation and intensifying competition.

According to the TransUnion South Africa Q4 2025 Mobility Insights Report, new passenger vehicle sales reached 422,103 units in 2025, representing 20.1% year-on-year growth. Momentum remained firm into the final quarter, with 114,246 vehicles sold in Q4, making it the strongest quarterly performance based on volume of the post-pandemic period.

“This recovery is real, but it is far from uniform,” says Ayesha Hatea, Senior Director of Research and Consulting at TransUnion Africa. “What we’re seeing is not a return to old buying patterns, but a more deliberate, affordability-driven market where consumers are weighing value, monthly repayments and long-term ownership costs far more carefully.”

Value Brands Cement a Structural Shift

One of the standout trends of 2025 has been the continued rise of Chinese manufacturers. These Chinese brands expanded at nearly nine times the pace of the overall market, lifting their share to more than 17% of total new passenger vehicle sales, up from less than 5% just four years ago.

Aggressive pricing of enhanced specifications, extended warranties and growing consumer trust have fuelled intensifying competitive pressure across all segments of the market.

“This is no longer a short-term disruption,” Hatea explains. “Value brands are now firmly embedded in South Africa’s automotive ecosystem, and their success highlights how decisively affordability and perceived value are influencing purchasing decisions.”

New Vehicles Regain Ground as Pricing Gaps Narrow

Improved affordability conditions shifted demand back toward new vehicles in Q4. New vehicle registrations rose 30.1% year-on-year, compared with just 0.7% growth in used vehicle registrations, narrowing the gap between the two segments. The used-to-new ratio declined to 2.9, down from approximately 3.8 in 2024.

This shift was supported by record-low new vehicle inflation of 1.2%, alongside 1.9% deflation in used vehicle prices, making monthly repayments on new vehicles increasingly competitive.

These trends align with a broader macroeconomic environment focused on easing pressure on household finances, as reinforced in South Africa’s 2026 National Budget delivered by Finance Minister Enoch Godongwana, which emphasised fiscal stability and moderating inflation. Against this backdrop, TransUnion’s data shows vehicle demand remains highly sensitive to interest rates, fuel costs and financing conditions.

“When repayment gaps narrow, buyer behaviour changes quickly,” says Hatea. “But affordability remains the single most powerful lever in sustaining demand.”

Younger Buyers Drive Momentum as Premium Demand Cools

Consumer sentiment showed modest improvement in Q4, with the share of consumers planning to buy a vehicle in the next three months rising from 17% in Q3 to 19% in Q4, according to the TransUnion Consumer Pulse Survey.

That improvement was driven primarily by younger consumers. Gen Z (ages 18-29) purchase intent increased to 25%, while Millennials (ages 30-45) rose to 21%, compared to 14% for Gen X (ages 46-61) and 7% for Baby Boomers (ages 62-80), underscoring a clear generational divide in demand.

At the same time, demand among high-income households has begun to normalise. While consumers in the highest income segment continued to show the strongest purchase intent at 20%, this marked a notable decline from 34% in Q3, indicating a cooling in premium-led purchasing.

“The centre of gravity is shifting,” Hatea notes. “Growth is increasingly coming from younger, more price-sensitive buyers rather than the top end of the market.”

Electrification Advances, on Practical Terms

Electrified mobility continued to gain traction in 2025, with new energy vehicle (NEV) sales reaching approximately 16,700 units, representing 4% of new passenger vehicle sales, up from just 0.3% in 2021.

Growth remains firmly hybrid-led, with traditional hybrids representing nearly three-quarters of NEV sales, reflecting consumer preference for lower upfront costs and limited reliance on charging infrastructure. Battery-electric vehicles remain concentrated among higher-income buyers.

“South Africa’s electrification journey is progressing, but it is pragmatic rather than aggressive,” says Hatea. “Hybrids are bridging the gap between affordability and sustainability.”

A Market Rebalanced, Not Recovered

As the industry looks ahead to 2026, TransUnion’s data suggests a market that has stabilised but remains finely balanced. “The next phase of growth will be incremental and affordability-driven,” Hatea concludes. “Manufacturers, dealers and financiers that align closely with how South Africans are actually buying, not how they bought a decade ago will be best positioned to compete.”

Read the full Q4 2025 TransUnion South Africa Mobility Insights Report here.

Read moreAffordability Drives South Africa’s Strongest New Car Sales in Over a Decade

South Africa’s Auto Market Shows Signs of Recovery as Used Vehicle Demand Rises

Location: Business
  • Used vehicle financing outpaces new car financing, with a ratio of 1.56 to 1 as affordability remains a key driver
  • New vehicle finance agreements grow by 12.7% YoY, despite economic uncertainty
  • South Africa reaches a milestone of 1,000+ battery electric vehicle (BEV) sales in 2024, with PHEV and HEV sales growing over 60% YoY

The latest TransUnion South Africa Vehicle Pricing Index (VPI) for Q4 2024 reveals a cautiously optimistic outlook for the country’s automotive sector, with improving economic conditions encouraging consumer confidence while affordability challenges continue to shape purchasing decisions.

Key insights from the report indicate a continued shift towards used vehicles, with financing for pre-owned vehicles outpacing new car financing at a ratio of 1.56 to 1, up from 1.23 in Q4 2023. Meanwhile, new vehicle prices increased by 1.7% due to supply chain constraints and production costs, while used vehicle prices declined by 2.8%, making them a more attractive option for cost-conscious buyers.

Despite these challenges, new vehicle finance agreements grew by 12.7% year-over-year (YoY), with Gen X and Millennials accounting for 67% of new agreements*.

“South Africa’s automotive sector is navigating a complex landscape, balancing economic improvements with persistent affordability challenges,” says Marcia Mayaba, Sales Vice President, Auto Information Services at TransUnion South Africa. “The demand for used vehicles continues to grow, while we’re also seeing an increasing shift towards alternative financing and ownership models, such as leasing and car subscriptions, particularly among younger consumers.”

Used Vehicles Dominate, While New Car Market Seeks Stability

The Q4 2024 VPI report highlights a strong preference for used vehicles, with financing activity significantly outpacing new vehicle sales. This shift is largely driven by affordability concerns, as inflationary pressures and high vehicle prices continue to impact consumer purchasing decisions.

The used-to-new financing ratio increased to 1.56 in Q4 2024, reflecting a clear trend toward more budget-friendly alternatives. At the same time, new vehicle registrations grew by 14.4% YoY, supported by improved economic conditions and rising consumer confidence.

The Future of South Africa’s Auto Market: EV Growth and Digital Financing

Looking ahead, the report highlights the rising potential of electric vehicles (EVs) in South Africa, signalling a significant shift in consumer interest and market dynamics. The country reached a milestone of over 1,000 battery electric vehicle (BEV) sales in 2024, a small but significant step in a market still dominated by petrol and diesel vehicles. While EVs represent a fraction of total sales, the 60% year-over-year growth in hybrid (HEV) and plug-in hybrid (PHEV) sales signals a gradual shift in consumer interest toward more sustainable options.

The introduction of more affordable EV models priced under R1 million, such as the BYD Dolphin and Seal, is expected to accelerate adoption in 2025, making EV ownership more accessible to a broader segment of the market. However, affordability remains a key barrier, with high upfront costs and concerns around charging infrastructure limiting mainstream adoption.

“EV adoption in South Africa is gaining momentum, but for this growth to be sustained, industry players must collaborate to make ownership more accessible," says Mayaba. "With the right financial products, infrastructure expansion, and increased consumer awareness, EVs have the potential to reshape South Africa’s automotive landscape in the years to come.”

Financing Trends and Alternative Ownership Models Gain Momentum

The report also reveals an evolving vehicle financing landscape, with leasing, subscriptions, and rent-to-buy agreements gaining traction as consumers seek more flexible and cost-effective solutions.

For the first time, the Q4 2024 VPI report explores the impact of e-Hailing, leasing, and car subscriptions on the South African auto market. While outright vehicle ownership remains dominant, alternative mobility solutions are becoming increasingly relevant. The report indicates that leasing and subscription-based models are particularly appealing to Millennials and Gen Z consumers, who prioritise affordability and flexibility over long-term ownership commitments.

Additionally, e-Hailing continues to serve as a supplementary transport solution rather than a direct competitor to vehicle ownership. According to recent data from inDrive, an international ride-hailing service, 21.1% of South Africans make us of e-hailing services, reflecting the growing popularity of these transportation alternatives. However, the majority of users still aspire to own a vehicle in the long term. To address affordability constraints and credit access challenges, leasing and rent-to-buy options are emerging as viable alternatives, offering consumers flexible solutions that align with their financial situations.

While lower-value finance agreements (under R250,000) declined, a growing share of financed vehicles now falls within the R250,000 to R750,000 range. This shift suggests that while affordability remains a concern, consumers are prioritising flexible financing solutions and adjusting their purchasing behaviour to align with available credit and economic conditions

“The traditional model of vehicle ownership is evolving,” adds Mayaba. “While outright ownership remains a key aspiration, younger generations are increasingly exploring flexible mobility solutions that align with their financial realities and lifestyle preferences.”

As South Africa’s automotive sector continues to evolve, the interplay between affordability, alternative financing models, and emerging technologies like EVs will shape its future. While used vehicles remain the preferred choice for many consumers, the growth in digital financing and the introduction of more accessible EV models signal an industry on the brink of transformation. Collaboration among industry players, financial institutions, and policymakers will be key to ensuring sustainable growth and greater accessibility for all consumers. With the right innovations and strategies, the sector is well-positioned to adapt to changing market dynamics and drive long-term success.

Read the latest TransUnion VPI Q4 2024 report here.

ENDS

Notes to Editors:

* Gen X (born 1965-1980), Millennials (born 1981-1996) and Gen Z (born 1997-2012)

The TransUnion South Africa Vehicle Pricing Index (VPI) tracks vehicle pricing trends across new and used markets, integrating data from SACRRA and industry-leading sources.

For more information, visit: www.transunion.co.za

Read moreSouth Africa’s Auto Market Shows Signs of Recovery as Used Vehicle Demand Rises

South Africa’s Automotive Market Accelerates to 11-Year High as Value Brands and Younger Buyers Drive Momentum

Location: Business
  • 111 697 new passenger vehicles sold in Q3 – up 23.4% year-on-year, the highest quarterly total since 2014
  • Chinese brands captured a record 15%+ market share, growing almost nine times faster than the market average
  • Passenger-vehicle exports rebounded 4.1% year-on-year, powered by a 63.7% September surge to a six-year high

South Africa’s automotive market shifted into top gear in the third quarter of 2025, posting its strongest sales performance in more than a decade as greater macro-economic stability, easing interest rates and a firmer rand supported renewed consumer demand. According to TransUnion’s Q3 2025 Mobility Insights Report, total new-passenger-vehicle sales reached 111 697 units, 23.4% higher year-on-year (YoY), while new vehicle inflation dropped to a record low of 1.5% (since tracking began in 2008), creating one of the most competitive pricing environments in recent memory.

“Affordability and choice are redefining South Africa’s automotive landscape,” says Lee Naik, CEO TransUnion Africa. “Consumers are seeking greater value and flexibility and manufacturers that meet this demand through innovation and pricing discipline are winning the race for growth.”

Affordability Drives Record Growth and Market Realignment

Although established OEMs returned to positive growth in Q2 and Q3 2025, the market’s transformation is being led by Chinese manufacturers expanding nearly nine times faster than the overall market, with YoY growth of 89% in Q2 and 88% in Q3.

Their combined share has quadrupled since 2021 to more than 15%, powered by competitively priced, feature-rich SUVs and sedans that appeal to cost-conscious yet tech-savvy buyers. Top-performing value brands YoY included JAC (67% volume increase), GWM (54%), Mahindra (42%) and Chery (35%), while BMW (27%) proved that premium marques can still thrive by combining desirability with strong product pipelines.

“This isn’t a short-term surge, it’s a structural reset,” adds Naik. “The success of value-driven models shows how affordability, technology and trust are now the true levers of brand growth in South Africa.”

Younger and High-Income Buyers Sustain Demand

Despite surging sales, TransUnion’s recent Consumer Pulse Survey shows a modest easing in purchase intent, with the share of respondents likely to buy a vehicle in the next three months declining from 19% in Q2 to 17% in Q3. The report suggests that current sales momentum is being driven primarily by pent-up demand, dealer incentives and fleet renewals, rather than broad-based consumer confidence.

Purchase behaviour also remains sharply segmented across both age and income groups. Younger consumers continue to lead intent, with 21% of Gen Z and 19% of Millennials planning to buy a vehicle in the next three months, compared to 13% of Gen X and 8% of Baby Boomers. From an income perspective, high-income households earning R200 000 or more per month show the strongest intent at 34%, while middle- and lower-income consumers remain significantly more cautious in their purchasing outlook.

Electrification: A Tale of Price and Generation

Internal-combustion vehicles (ICE) remain the single largest category in consumer purchase intent, accounting for 42% of consumer preference, while interest in hybrid (39%) and plug-in hybrid (24%) models is steadily increasing. The shift toward electrification is most pronounced among Gen Z consumers, with 55% favouring hybrids and 32% considering battery-electric vehicles (BEVs).

This generational shift toward greener technology is evident among high-income buyers, with 75% considering plug-in hybrids, driven primarily by their perceived affordability. In contrast, preference for ICE vehicles remains largely affordability-based among lower-income segments. Higher budgets within affluent households enable greater consideration of hybrid electric (HEV), plug-in hybrid (PHEV), and battery electric vehicles (BEV), reinforcing an emerging “electrification divide.” This dynamic presents a significant opportunity for OEMs and financiers to tailor product offerings and financing strategies to meet the distinct needs of different age and income segments.

Connected Cars: Data Becomes the New Engine

Q3’s Mobility Insights Report special feature, The Connected Road, explores how connected-car technology is transforming mobility. Connectivity is now standard in most post-2015 vehicles, enabling real-time navigation, predictive maintenance, remote access, and advanced safety systems. Yet global data warns of “connectivity fatigue”: Over three quarters (76%) of drivers internationally don’t subscribe to connected services, mainly due to cost.

Naik says: “South Africa has a chance to leapfrog global missteps by focusing on value-adding applications, safer driving, cheaper insurance and smarter maintenance rather than gimmicks.”

Exports Rebound and Dealer Confidence Climbs

Passenger-vehicle unit exports rose 4.1% YoY after a steep Q2 contraction, driven by a 63.7% September surge that lifted shipments to a six-year high. Meanwhile, the RMB/BER Motor Traders Confidence Index advanced to 54, marking its second net-positive reading of 2025 and notably placing it above the neutral 50-point mark, which signals growing dealer optimism amid sustained sales momentum and improving export conditions.

Balancing Value and Transformation

The convergence of affordability, segmentation, electrification, and connectivity signals a pivotal shift in the automotive industry. “The future belongs to brands and financiers that master both the value-driven present and the connected, electrified future,” concludes Naik. “Data-led insight will be the bridge that connects today’s strategies with tomorrow’s innovation

Read the full TransUnion South Africa Q3 2025 Mobility Insights Report here.

Read moreSouth Africa’s Automotive Market Accelerates to 11-Year High as Value Brands and Younger Buyers Drive Momentum

Anglo American Platinum CEO Confirmed to Speak at African Mining Week 2025

Location: Business

Energy Capital & Power
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Craig Miller, CEO of mining company Anglo American Platinum, has been confirmed to speak at the upcoming African Mining Week 2025 conference. During the event, Miller is expected to shed light on the company's strategy in Africa as well as the continent's pivotal role in strengthening the global PGM supply chain. Miller will speak on a panel titled: South Africa's Strategic Influence in the Global Platinum Group Metals Market.

Taking place October 1–3, 2025, in Cape Town, African Mining Week is Africa's premier gathering for mining stakeholders and provides a strategic platform for industry leaders, investors and companies to unlock emerging opportunities across the continent's mining value chain. As the CEO of the world's largest platinum group metals (PGM) producer, Miller is uniquely positioned to discuss the continent's emergence as a global PGM supplier and the impact resource-rich nations such as South Africa will have on future supply chains.

African Mining Week serves as a premier platform for exploring the full spectrum of mining opportunities across Africa. The event is held alongside the African Energy Week: Invest in African Energies 2025 conference from October 1-3 in Cape Town. Sponsors, exhibitors and delegates can learn more by contacting sales@energycapitalpower.com.

With global demand for PGMs increasing - driven by applications in electric vehicles and clean energy technologies – Anglo American Platinum is positioning itself as an instrumental part of the continent's PGM value chain. The company operates several of South Africa's key PGM producing assets, including the 5.8-million-ounce (oz) Tumela Mine, the 310,000-oz Mogalakwena Mine, the 217,000-oz Kroondal Mine, the 160,000-oz Dishaba Mine, among other projects. In Zimbabwe, the company manages the Unki Platinum Mine, one of the country's largest with an annual production capacity of 64,000 oz.

For 2025, the company has set a refined production target of up to 3.4 million oz across its PGM projects, supported by ongoing mine expansions and new investments across its African portfolio. As such, African Mining Week 2025 will serve as a crucial platform for Miller to share insight into the company's investments in Africa and the road ahead for the continent's PGM production.

Through his participation, Miller is expected to outline the company's future direction, strategic priorities and ongoing projects, while reinforcing cooperation with African and international partners to enhance operational performance and market access. The South Africa's Strategic Influence in the Global Platinum Group Metals Market session offers a strategic opportunity for conference attendees to gain insight into both the country's PGM market and its future role as a global supplier.

Distributed by APO Group on behalf of Energy Capital & Power.

Read moreAnglo American Platinum CEO Confirmed to Speak at African Mining Week 2025

African Rare Earth Projects Advance Amid Rising Global Demand

Location: News

Energy Capital & Power
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The global demand for rare earth elements (apo-opa.co/3FI1pbZ) is projected to increase four-fold by 2030, driven by the energy transition and increasing investments in industrialization. African nations rich in rare earth minerals are accelerating exploration and production efforts to capitalize on this growth. With up to eight rare earth projects set for commissioning across the continent by 2029 - boosting Africa's share of the global supply chain to 10% - the upcoming African Mining Week will spotlight opportunities across the rare earth value chain.

Africa's rare earth sector remains largely untapped, thereby attracting the interest of global project developers eager to unlock its full potential. South African asset manager Novare, for example, signed a R1.8 billion agreement (apo-opa.co/3E9EG8f) in February 2025 with American firm ReElement Technologies to develop a rare earth refining and battery manufacturing facility. ReElement will contribute its refining technology while Novare will provide funding for the value addition initiative, with construction expected to begin in the second half of 2025.

In Namibia, the Japan Organization for Metals and Energy Security and Namibia Critical Metals (apo-opa.co/427nfNI) completed a production pilot for the Lofdal Project, one of only two xenotime-type heavy rare earth deposits currently under development worldwide. Meanwhile, in Angola, Pensana (apo-opa.co/43A3nW0) secured an $80 million loan from Absa Bank Limited in January 2025 to expedite the rollout of the Longonjo Project, which is expected to supply 5% of the world's magnet metal rare earths demand – essential for the development of wind turbines and electric vehicles.

Major investors are also making bold moves in Africa's rare earth sector. Billionaires Jeff Bezos and Bill Gates (apo-opa.co/3FJsOdC) have injected $537 million into exploration and mine development through mining startup KoBold Metals, further accelerating Africa's rare earth ambitions. The funding will be directed toward rare earth mining ventures. Additionally, recognizing the strategic value of rare earths, multinational financial institution the African Development Bank proposed the development of the African Units of Account (AUA) (apo-opa.co/3FOTDxe) - a new currency backed by Africa's critical mineral reserves, including rare earth elements. The initiative would help stabilize regional currency markets and attract more international investment in green energy projects, amidst the growing demand of critical minerals globally and Africa's vast reserves.

The year 2025 continues to mark significant milestones in the growth of Africa's rare earth sector, with the advancement of key projects (apo-opa.co/43uodGd) such as Phalaborwa and Steenkampskraal (South Africa), Makuutu (Angola), Ngualla (Tanzania) and Songwe (Malawi). Amid these developments, African Mining Week serves as a strategic platform for African regulators, industry stakeholders and global investors to engage in deal signings and forge partnerships, further solidifying Africa's role in the global rare earth supply chain.

Distributed by APO Group on behalf of Energy Capital & Power.

African Mining Week serves as a premier platform for exploring the full spectrum of mining opportunities across Africa. The event is held alongside the African Energy Week: Invest in African Energies 2025 conference from October 1-3 in Cape Town. Sponsors, exhibitors and delegates can learn more by contacting sales@energycapitalpower.com.

Read moreAfrican Rare Earth Projects Advance Amid Rising Global Demand

Can JP Van Der Walt’s 42.935 Seconds Record From 2024 Be Beaten?

Location: Sport

Exciting manufacturer entries in Road Car and Supercar category from BMW, MINI, Opel and Suzuki, along with Mercedes-AMG and MG in class A8 for hybrids and EVs Dazzling array of desirable supercars encompassing Audi, Ferrari, McLaren and Porsche, along with a strong contingent of exclusive Shelby Mustangs  New King of the Hill winner will be […]

Read moreCan JP Van Der Walt’s 42.935 Seconds Record From 2024 Be Beaten?

Government to ‘breathe new life’ into mining

Location: News

Government to 'breathe new life' into mining

President Cyril Ramaphosa has announced that government will pour efforts into re-energising the mining industry.

He said this when he delivered the State of the Nation Address at the Cape Town City Hall on Thursday.

According to the Minerals Council of South Africa, the mining industry contributed approximately 6.3% to South Africa’s nominal Gross Domestic Product (GDP) in 2023.

It also commands a large share of South Africa’s exports by value.

“We are breathing new life into the mining industry, which remains one of our most important and valuable endowments,” the President said.

He added that the Department of Mineral and Petroleum Resources was implementing modern mining rights systems. 

While that work is underway, the backlog in prospecting and mining applications was also being attended to, with at least 114 mining rights, 982 prospecting rights, and 385 mining permits and ancillaries processed and finalised.

“We are on track to implement a new, modern and transparent mining rights system this year, which will unlock investment in exploration and production. 

“We will put in place an enabling policy and regulatory framework for critical minerals. 

“By beneficiating these minerals here in South Africa, we can make use of the extraordinary wealth that lies beneath our soil for the benefit of our people,” President Ramaphosa said.

Renewable energy

Although mining remains a key pillar in the South African economy, President Ramaphosa emphasised that a new growth sector in renewable energy was emerging which South Africa was well positioned to leverage.

“To create jobs, we must leverage our unique strengths and our unrealised potential to build the industries of the future – green manufacturing, renewable energy, electric vehicles and the digital economy,” he said.

Furthermore, South Africa is abundant in the natural resources linked to renewable energy.

“We are harnessing the sun and the wind to make our country a leader in renewable energy and green manufacturing. 

“With an abundance of cheap, green energy, we can produce products that are competitive anywhere in the world and create hundreds of thousands of new jobs in the process,” President Ramaphosa said. – SAnews.gov.za

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Thu, 02/06/2025 - 21:46

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Read moreGovernment to ‘breathe new life’ into mining

Nzimande forms part of ministerial delegation to World Economic Forum

Location: News

Nzimande forms part of ministerial delegation to World Economic Forum

The Minister of Science, Technology and Innovation, Professor Blade Nzimande, is part of the South African delegation, led by President Cyril Ramaphosa, attending the 55th World Economic Forum (WEF) in Davos, Switzerland. 

The annual meeting is taking place from 20 - 24 January 2025, under the theme: ‘Collaboration for the Intelligent Age’. 

“The meeting will convene global leaders to address key global and regional challenges, which include responding to geopolitical shocks, stimulating growth to improve living standards, and stewarding a just and inclusive energy transition,” the Department of Science, Technology and Innovation (DSTI) said. 

During its Group of 20 (G20) Presidency in 2025, South Africa will endeavour to create equitable opportunities for all by addressing systemic disparities and promoting unity and mutual support to address shared global challenges collaboratively. 

As part of the contribution of the DSTI, Nzimande participated in WEF panel discussions on Tuesday. 

The discussions focused on scaling solutions for Africa’s economic future and getting the electric vehicles supply chain right. 

Today, the Minister will take part in another session focused on the theme: ‘Space: Leaving No Country Behind’.

President Cyril Ramaphosa touched down in Davos on Tuesday and has already delivered a special address to the WEF, where he presented the economic priorities of South Africa’s Government of National Unity and the country’s G20 Presidency.

During the week, the President will undertake numerous bilateral meetings with Heads of State and Government and leaders of international organisations. 

He will also participate in diverse activities in different sectors of the WEF annual meeting.

The President is accompanied by Minister of International Relations and Cooperation, Ronald Lamola; Minister of Finance, Enoch Godongwana; Minister of Trade, Industry and Competition, Parks Tau; Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa; Minister of Communications and Digital Technologies, Solly Malatsi; Minister of Fisheries, Forestry and Environment, Dr Dion George; Minister of Health, Dr Aaron Motsoaledi and Minister of Agriculture, John Steenhuisen. – SAnews.gov.za
 

Gabisile
Wed, 01/22/2025 - 09:37

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SA sets sights on industrialisation opportunities presented by decarbonisation

Location: News

SA sets sights on industrialisation opportunities presented by decarbonisation

South Africa is making the most of the available opportunities to drive industrialisation through global decarbonisation efforts, says Trade, Industry and Competition Minister Parks Tau.

Tau on Wednesday led a team of officials from the Department of Trade, Industry and Competition (dtic) to a joint briefing session of Parliament’s Portfolio Committees on Trade and Industry and Science, Technology and Innovation. The aim of the session was to engage on South Africa’s Green Hydrogen Commercialisation Strategy and the White Paper on Electric Vehicles.

Tau told the Members of the Portfolio Committee that South Africa has committed itself to reducing greenhouse gas emission, as envisaged in the national Just Energy Transition. Above its own contributions to reduce emissions, South Africa has partnered with the rest of the world to decarbonise.

Tau said South Africa has to decarbonise its own economy but also position itself to commercially benefit from the global shift to greener technologies.

“Green hydrogen presents an opportunity to export natural resources such as sunshine and wind, which South Africa has in abundance. 

“The global demand for green hydrogen presents ample industrialisation opportunities not only for South Africa but for other African countries, so we need to collaborate and integrate efforts to drive the industrialisation agenda for the continent as a whole. 

“The speed with which we move will determine whether we are able to take full advantage of the transition or we are left behind,” he said.

Linked to decarbonisation efforts is the worldwide move to electric vehicles, which Tau described as advancing at a fast pace.

Through the White Paper on Electric Vehicles and support for the automotives industry, South Africa is embracing the transition and adapting its Automotive Strategy to current global trends. 

The White Paper on Electric Vehicles outlines a commitment to ensuring that the transition is not just about decarbonisation but is also leveraged for growth by deepening the automotive value chain, fostering local industry growth, and aligning with economic priorities, the approach aims to be pro-growth and pro-investment.

Regarding the carbon intensity of the South African economy, Tau indicated that government is  cognisant of the fact that some of the measures, such as the Carbon Border Adjustment Mechanism introduced by the European Union, do require that the country challenge them at the level of the World Trade Organisation, as they likely to have a negative impact on economic growth efforts. – SAnews.gov.za

Edwin
Wed, 11/20/2024 - 15:21

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Read moreSA sets sights on industrialisation opportunities presented by decarbonisation

Cabinet briefed on outcomes on State Visit to China

Location: News

Cabinet briefed on outcomes on State Visit to China

Cabinet has received a briefing on the outcomes of the recent successful State Visit to the People’s Republic of China that was led by President Cyril Ramaphosa.

President Ramaphosa undertook a State Visit to China and attended the Forum on China – Africa Cooperation Summit (FOCAC) in Beijing from 2 to 6 September 2024 at the invitation of President Xi Jinping.

China is South Africa's largest trading partner globally, while South Africa is China’s number one trading partner in Africa. Total bilateral trade grew from R614 billion in 2022 to R692 billion in 2023.

“An agreement to change the structure of trade into more value- added manufactured products, particularly an agreement to exchange a list of 100 value-added products from South Africa that China will consider importing.

“In addition, South Africa secured cooperation from China on three value chains relating to decarbonisation, digitalisation, transport and logistics. This cooperation will pave the way to promote investments in electric vehicles, battery manufacturing, renewable energy storage, as well as in identified Special Economic Zones and Industrial Development Zones,” Minister in The Presidency, Khumbudzo Ntshavheni said on Wednesday in Cape Town.

Key Chinese investors in both Shenzhen and Beijing expressed interest to either expand their investments or for greenfield investment into South Africa. 

“During the State Visit, six Memoranda of Understanding (MoUs) were signed aimed at promoting cooperations between China’s entities and South African companies and Development Finance Institutions to strengthen cooperation to promote industrial development in South Africa, promote technology cooperation to advance decarbonisation of key South African sectors and value -chains and to promote investments in the renewable energy sector.

“The agreements signed both at a government and private sector level will contribute to accelerate investments that promote green and low-carbon transformation and promote innovation in industrial activities and also attract investment in Special Economic Zones and Industrial Parks,” the Minister said.

Ntshavheni was briefing members of the media on the outcomes of the Cabinet meeting held on 6 November 2024.  - SAnews.gov.za

nosihle
Wed, 11/13/2024 - 13:55

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Mining industry a “sunrise industry”

Location: News

Mining industry a “sunrise industry”

Mineral and Petroleum Resources Minister Gwede Mantashe has described the mining industry as a “sunrise industry” that is diversifying from bygone eras.

The Minister said this during his address at the Mintek @90 Conference held in Sandton on Monday.

Mintek is, among other things, the national research and development entity specifically focused on mining and metallurgy.

“Mintek continues to focus on conducting research that will not only have impactful outcomes for the industry but drive technological innovations that will have a positive societal impact, stimulate economic growth, reduce unemployment and inequality, as well as eradicate poverty in South Africa.

“Thanks to the work that is being pioneered by the entity, in collaboration with the industry and various research institutions, that we can now confidently describe the South African mining industry as a sunrise industry that is diversifying from the gold mining era to a diversified industry with the world’s largest reserves of platinum group metals [PGM], manganese, chrome, coal, vanadium, and rare earth minerals,” Mantashe said.

The Minister highlighted that as the need for transition towards renewable energy sources builds up steam, so will the need for PGM rise and this is where Mintek can become a “significant player” on a national, continental and global stage. 

“The need for the world to transition from high carbon emissions to low carbon emissions has increased the demand for ‘green’ minerals. As the world’s largest producer of manganese and chrome, the South African manganese and chrome sectors are equally poised to play a significant role in the global automotive and construction industries given the expected demand for green technologies and electric vehicles.

“As we continue to engage the manganese and chrome producers on mineral value-addition close to the point of production, given its existing pioneering research capabilities, Mintek can be a significant player in the global clean energy economy.

“While there is no universal consensus on the “critical minerals”, the approach by Mintek in developing South Africa’s critical minerals strategy is poised to guide not only South Africa’s, but Africa’s responsible exploration, processing, and exporting of these essential resources,” he said.

Turning to the challenge of illegal mining in the country, Mantashe revealed that Mintek is playing a role in “tackling ownerless and derelict mines by closing the holes that were left behind, thereby help in combating illegal mining and trading in ores”.

He added that the entity is also engaged in work to improving mining processes and efficiency.

“Although funding for this project is not sufficient, there is visible progress which aligns with the government's commitment to addressing environmental sustainability and fostering sustainable growth within the industry.

“Furthermore, Mintek continues to lead the way in driving technological innovations that enhance metal recovery from both conventional and emerging processes. 

“Its focus on continually improving these processes and ensuring the efficient utilisation of energy and water resources by developing technologies to minimise environmental pollution, reflect government’s commitment to safe reclamation of waste, and further promotes broader environmental sustainability within the sector,” the Minister said.

Mantashe emphasised that the success of South Africa’s mining sector – which has contributed at least 6.3% to the nominal Gross Domestic Product this year – rests on not only on research and development but also on collaboration between government, the private sector and academia.

“These collaborations are essential for driving progress and fostering innovation, thereby enable us to tackle the complex challenges we face. By working together, we can leverage diverse expertise and resources, thus ensuring that our collective efforts are aligned with the industry's pressing needs.

“Such synergy not only enhances our ability to respond effectively to market demands but also promotes sustainable practices that benefit the economy and the environment.

“For the next 90 years, Mintek is poised to continue its trajectory of innovation and excellence in mineral technology. The ongoing commitment to advancing techniques in mineral extraction, refining, and processing will be pivotal in addressing both the current and emerging challenges in the industry,” Mantashe said. – SAnews.gov.za

 

NeoB
Mon, 11/11/2024 - 11:57

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SA well placed to be major hub in clean tech value chain

Location: News

SA well placed to be major hub in clean tech value chain

South Africa is well placed to become a hub for components and equipment manufacturing in the clean technology value chain, including battery technologies for energy storage, electric mobility, material handling and a range of other applications. 

This is according to the Deputy Minister of Trade, Industry and Competition, Andrew Whitfield, who addressed the opening of the R150 million Balancell state-of-the-art Gigafactory in Cape Town.

Balancell is a future-focused, innovative technology business that develops smart batteries designed to manage and protect themselves, and report their use and condition remotely.

“The South African government is working closely with the industry to identify opportunities to deepen the battery technology value chain and to position South Africa as a manufacturing hub on the African continent.

“A recent benchmarking study, supported by the World Bank Group, shows that South Africa is a competitive manufacturing destination, and offers a compelling value proposition for companies in this sector, as demonstrated here,” Whitfield said.

To support these ambitions, Whitfield said there was a number of policies and incentives in place that will enable the growth of this key sector. He said Cabinet has already approved the New Energy Vehicle White paper, setting out the objectives for this sector. 

“Being able to witness an investment from homegrown companies in this sector is truly inspiring. Balancell’s investment of R150 million in this factory is not only directly in line with the strategic priorities of the Government of National Unity, but also a demonstration of the innovative and entrepreneurial spirit that defines many South African businesses. 

“We are motivated by the company’s prospects for growth and further job creation in the coming years. The 75 existing jobs created in this [Gigafactory], supporting more than 1 500 indirect jobs, is a clear indication of the multiplier effect that can be achieved by strengthening and growing the manufacturing sector,” Whitfield said.

A Gigafactory is a huge factory that produces very large numbers of batteries for electric vehicles.

Whitfield highlighted the importance of building a strong base of skilled South Africans. 

“Expanding industry partnerships with leading universities and research institutions to enhance local research, development and testing of components is critical to the industry. I am, therefore, encouraged that you are already working with the Nelson Mandela and Stellenbosch Universities, as well as the Council for Scientific and Industrial Research,” the Deputy Minister said. 

He described the opening of the Gigafactory as an affirmation of the importance of building industrial capacity and working together to achieve the shared vision of South Africa being a global player in the battery value chain.

He further said the investment is an example of South African resilience, innovation and entrepreneurship. – SAnews.gov.za
 

Edwin
Fri, 10/25/2024 - 10:46

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Move towards electronic vehicles a ‘major industrialisation opportunity’

Location: News

Move towards electronic vehicles a 'major industrialisation opportunity'

President Cyril Ramaphosa says the global move from Internal Combustion Engines towards Electronic Vehicles (EVs) presents a major opportunity for South African industrialisation.

The President was speaking during the South African Auto Week held at the Cape Town International Convention Centre in the Western Cape on Thursday.

“As many of our major trading partners rapidly shift towards EVs, it is imperative that we remain part of this global supply chain. This is a major industrialisation opportunity for South Africa and the region, particularly within the context of the African Continental Free Trade Area.

“This will position South Africa as a forward-thinking, green economy. It will advance our aspirations to be a global automotive hub,” President Ramaphosa said.

He acknowledged that decarbonisation presents a challenge to the automotive sector, but assured that government is committed to working closely with the sector.

“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. 

“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 has a critical role to play in achieving South Africa’s climate targets.

“We are committed to working hand-in-hand with the private sector to promote the production of New Energy Vehicles [NEV] and the development of the necessary infrastructure to support them,” he said.

READ | President Ramaphosa to address SA Automotive Week

Furthermore, President Ramaphosa revealed that the Department of Trade, Industry and Competition, National Treasury and the Department of Mineral and Petroleum Resources are in discussion on the implementation of the Electric Vehicle White Paper.

“This work includes the beneficiation of our critical minerals for the production of new energy vehicles and their associated value chains. It also includes the production of batteries for battery electric vehicles and the development of value chains in the green hydrogen fuel cell market.

“We are working to finalise comprehensive NEV policy guidelines that do not exclude alternative technologies such as hybrids and plug-in hybrids. Consideration must be given to incentives for manufacturers as well as tax rebates or subsidies for consumers to accelerate the uptake of electric vehicles.

“This is not just about creating a greener future but also about ensuring South Africa remains competitive in the global market.”

Removing barriers

The President emphasised that government, through reforms in energy, logistics and other sectors, is working to remove the barriers that affect the sector.

“As government, we remain firmly committed to the work already underway to improve the operational performance of our energy, freight and logistics sectors – all of which directly impacts the automotive industry.

“Transnet continues with its work to revitalise the Port of Durban. It is also proceeding with the upgrade of the Gauteng-Eastern Cape railway line as part of Project Ukuvuselela,” he said.

The President told the delegates that the Government of National Unity looks forward to “deepening our collaboration as government, industry and labour” to achieve the objectives of inclusive growth and job creation.

“There may be headwinds. But in challenges lie opportunities. It is up to us to harness these opportunities to grow, to expand and to transform,” President Ramaphosa said. – SAnews.gov.za

 

NeoB
Thu, 10/17/2024 - 11:30

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Critical minerals sector key to driving global economic growth

Location: News

Critical minerals sector key to driving global economic growth

President Cyril Ramaphosa has emphasised the importance of the critical minerals sector in driving global economic growth and sustainability. 

By leveraging key sectors such as mining, energy, and manufacturing, the President said South Africa is set to improve its business environment and attract much-needed investment.

He was addressing the African Minerals Forum hosted by the Business Council for International Understanding (BCIU) and Prosper Africa on the sidelines of the United Nations General Assembly (UNGA 79), in New York, USA, on Monday. 

He highlighted that four months ago, South Africa held national general elections, which ushered in a Government of National Unity, where 10 political parties have come together to coalesce around a common agenda for economic growth and sustainable development.

President Ramaphosa underlined South Africa's commitment to reducing greenhouse gas emissions and mitigating climate change through the country's Just Energy Transition Plan. This plan aims to guide the shift from coal to renewable energy, while also ensuring equitable economic opportunities for affected communities. 

“South Africa's and Africa’s critical minerals sector has a crucial role to play in this regard, and we recognise the importance of collaboration with other countries to develop the potential of our critical minerals sector. 

“The US in particular has established expertise in advanced mining technologies, automation and sustainability practices. 

“We want to strengthen our ties with US companies and institutions to foster technological advancements, enhance supply chain efficiencies and attract investment into our mining sector,” the President said. 

The President also emphasised that South Africa strongly endorses the United Nations Secretary-General’s position paper on Critical Energy Transition Minerals, where he highlights the importance of beneficiation, benefit sharing, local value addition and economic diversification.

“It would not be an understatement to say that the minerals that lie beneath the soil of Africa are powering the green energy revolution. Thirty percent of the world’s proven critical mineral reserves are found in Sub-Saharan Africa.

“South Africa has substantial reserves of platinum group metals, manganese, vanadium as well as chromium. 

“These resources are fundamental to the development of cutting-edge technologies that drive progress in various sectors. What will be critical is to ensure that this progress does not leave Africa behind,” he said.

The President stressed the need to avoid perpetuating colonial-era exploitation, where African countries primarily export raw minerals. He said that by focusing on beneficiation and domestic processing, African nations could see significant economic growth. 

President Ramaphosa highlighted that beneficiation and local processing of critical minerals could increase the continent’s GDP by 12% or more by 2050. 

He cited estimates suggesting that African countries could generate USD 24 billion annually in GDP and create 2.3 million jobs by investing in mining beneficiation and domestic processing.

President Ramaphosa highlighted the strides made by SASOL, South Africa’s flagship petrochemical company, in leading green hydrogen technologies research and development. 

“As the global automotive industry moves towards Electric Vehicles and New Energy Vehicles, we are leveraging our rich experience with automotive production to get some of the world’s leading automotive manufactures with a footprint in South Africa to produce more their green vehicles in our country,” he said. 

Despite improvements in the beneficiation of South Africa’s mineral exports, President Ramaphosa admitted that more needs to be done. 

He underscored the country’s commitment to creating a supportive policy framework for the critical minerals sector, focused on streamlining regulations, fostering innovation in mining technologies, building workforce skills, improving transport and logistics infrastructure, and incentivising investment.

South Africa's five-point policy approach aims to create a supportive environment for the critical minerals sector. This includes simplifying regulations, supporting research and development in mining technologies, investing in workforce skills, improving logistics infrastructure, and incentivising domestic and international investment. 

“South Africa also has a beneficiation strategy that seeks to translate the benefits of our country’s mineral endowments into a national competitive advantage. 

“As the UN Secretary-General’s paper has noted, Critical Energy Transition Minerals can transform economies, create green jobs and foster sustainable local, regional and global development,” he said. 

President Ramaphosa further stressed that for the potential of critical minerals to be fully realised, both mineral-producing nations and their end-user countries must embrace inclusivity. 

He emphasised the importance of creating decent work opportunities, eradicating exploitative practices such as child and forced labour, and ensuring human rights protections. 

Local beneficiation and industrialisation were highlighted as priorities, alongside environmental safeguards to ensure sustainable extraction practices. 

The President urged for a long-term focus on inter-generational equity, recognising that critical minerals are vital for solving global challenges like climate change, energy, and food insecurity. 

He called on US companies to collaborate in fostering sustainable development.

“By leveraging our respective strengths, pursuing strategic collaborations, and implementing supportive policies, we stand ready to meet the demands of the global market and drive sustainable development. 

“I call on US companies and investors to join us on our journey,” he said. – SAnews.gov.za

DikelediM
Tue, 09/24/2024 - 10:07

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President Ramaphosa urges US business to invest in SA’s growing economy

Location: News

President Ramaphosa urges US business to invest in SA’s growing economy

President Cyril Ramaphosa has called on US businesses to deepen their investment ties with South Africa, highlighting the country's renewed focus on economic recovery and structural reform. 

Speaking at the SA-US Interactive Business Forum in New York on Monday, the President emphasised the progress made under South Africa's Government of National Unity (GNU) and the vast opportunities available to foreign investors.

He said this is a “timely intervention”, referencing his first visit to the US since South Africa's general elections in May, which led to a coalition government of political parties committed to inclusive growth and job creation.

“The advent of the Government of National Unity has renewed investor optimism in the South African economy. The message I bring to US investors today is that this optimism is well-placed. 

“South Africa is firmly on the road to recovery, and we invite you to be part of this journey. Investments in South Africa are secure. Our business environment is stable. This is supported policy certainty and regulatory safeguards,” the President said. 

He added that South Africa intends to stay the course on the structural economic reform process, on scaling up investment in key infrastructure, and on improving the business operating environment.

The President noted South Africa’s success in attracting investment, revealing that the country had achieved its target of raising R1.2 trillion (approximately USD 63.6 billion) ahead of schedule in 2022. 

 “We have announced a new target of approximately R2 trillion or approximately USD 100 billion over the next five-year period up to 2028. 

“The far-reaching structural reforms we have implemented over the past six years have opened up the country to increased levels of investment that continues to grow,” the President said. 

Ramaphosa particularly underscored the potential in the clean energy sector, which has attracted significant investment, supporting South Africa’s commitment to decarbonisation and energy security. 

"We are equally committed to a Just Energy Transition that is inclusive, that take our developmental needs into account, and that leaves no community behind. 

“We have a supportive and enabling industrial policy that incorporates amongst others expanding the special economic zones, driving export-led growth, and harnessing the potential of the Africa Continental Free Trade Area or AfCFTA. In January 2024 we began preferential trading under the AfCFTA,” he said. 

The President emphasised that the Government of National Unity is furthermore committed to prudent monetary and fiscal policy and to strengthening regulatory and legislative frameworks to combat corruption.

The President also highlighted the importance of strategic partnerships with US businesses, especially in sectors like advanced manufacturing, energy, healthcare, and infrastructure. 

“South Africa and Africa is ripe for investment in financial services, advanced manufacturing, energy, healthcare, infrastructure development, mining, science and technology and other sectors. South Africa is also developing the value chains of the future.

“With substantial reserves of critical energy transition minerals, we are positioning ourselves to be at the forefront of the green energy revolution,” he said. 

He added that as the country with the world’s largest platinum group metal reserves, South Africa has a competitive advantage when it comes to the production of sustainable energy technologies, including electric vehicles, new energy vehicles and renewable energy components.

President Ramaphosa praised the collaboration between the New York Stock Exchange (NYSE) and Johannesburg Stock Exchange (JSE), following the 2022 Memorandum of Understanding. He stated that the partnership between the two stock exchanges “promotes cross-border investment and drives economic growth on a global scale.”

The President further highlighted the US as one of South Africa’s most valued trade partners, noting that bilateral trade totalled USD 17.6 billion in 2022. 

He also praised the impact of the African Growth and Opportunity Act (AGOA) in fostering trade and creating jobs in sectors like automotive, agriculture, and precious metals.

With Africa's population expected to reach 2.5 billion by 2050, President Ramaphosa painted a bright picture of the continent's economic prospects, noting that the African Continental Free Trade Area (AfCFTA) would "drive a wave of industrialisation and create dynamic regional value chains."

“This too presents opportunities for US businesses and investors, and opens up new markets for their goods, products and services. 

“Mutually beneficial trade and investment not only unlocks the dynamism and potential of an entire continent. It will also aid Africa’s efforts to achieve the Sustainable Development Goals,” the President said. 

In closing, President Ramaphosa reassured investors of the stability and security of investments in South Africa. 

“South Africa is open for business. Sustainable and inclusive growth spurs development and creates jobs.

“Together, we can forge a path to shared success and progress, leveraging our combined strengths to achieve enduring prosperity for our people,” the President said. – SAnews.gov.za

 

DikelediM
Tue, 09/24/2024 - 11:01

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The Future of Transportation: Electric Vehicle Charging Solutions

Location: MyPR

As the shift towards sustainable transportation accelerates, the demand for efficient electric vehicle (EV) charging solutions is becoming more crucial. This article explores the significance of EV chargers and their role in supporting the adoption of electric vehicles.   Introduction to Electric Vehicle Charging Electric vehicles are at the forefront of an automotive revolution, offering …

Read moreThe Future of Transportation: Electric Vehicle Charging Solutions

Eskom launches pilot electric vehicle charging infrastructure in Midrand

Location: News

Eskom launches pilot electric vehicle charging infrastructure in Midrand

Eskom has officially launched its electric vehicle (EV) charging infrastructure at the Eskom Academy of Learning (EAL) in Midrand, Gauteng. 

“This milestone marks a significant step in Eskom Distribution’s commitment to supporting the growth of the eMobility sector in South Africa and contributing to the country’s broader goals of reducing carbon emissions,” the state-owned power utility said. 

According to Eskom, the pilot project includes the procurement of 20 EVs ranging from light delivery vehicles to light trucks for operational use. 

The pilot project also involves the installation of 10 charging stations at five Eskom sites across the country. 

The other sites are Brackenfell in Cape Town, Mkondeni in Pietermaritzburg, Tlhabane Customer Network Centre (CNC) in Rustenburg and Marathon CNC in Mbombela. 

These sites will serve as the foundation for Eskom Distribution’s long-term strategy to electrify its entire fleet by 2040.

“We continue to focus on our long-term strategy to deliver a competitive, sustainable, and future-proof Eskom to ensure energy security, growth, and long-term sustainability for the benefit of South Africa and sub-Saharan Africa,” said General Manager in the Office of the Eskom Group Executive for Distribution, Gabriel Kgabo. 

By investing in eMobility and the charging infrastructure needed for EVs, Kgabo said Eskom was not only reducing its carbon footprint but also stimulating the local economy and creating new growth opportunities. 
Kgabo highlighted Eskom’s support of the government to align South Africa with the global EV ecosystem market. 

Key initiatives include the EV White Paper released by the Department of Trade Industry and Competition in December 2023 and the incentives announced by the National Treasury to encourage the local production of EVs from 2026.

Pilot Project Overview

The recently installed charging stations, in collaboration with Gridcars, feature state-of-the-art direct current fast chargers (60kW) and dual alternating current (AC) chargers (22kW). They are optimised for overnight charging of fleet vehicles and daytime workplace charging for employees and visitors.

The power utility believes this initiative will serve as a blueprint for the future rollout of EVs across Eskom’s entire fleet. 

“It is one of the levers that will steer the organisation towards net zero carbon emissions by 2050 and will also contribute to stimulating the local EV market.

“The successful launch of this infrastructure is a result of the dedicated efforts of the project team within Eskom. Their work is laying the groundwork for a future where electric vehicles play a central role in South Africa’s transportation landscape.” – SAnews.gov.za 

Gabisile
Fri, 08/23/2024 - 10:00

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SA to further focus on manufacturing and exports to grow economy

Location: News

SA to further focus on manufacturing and exports to grow economy

Trade, Industry and Competition Deputy Minister Andrew Whitfield says it is essential that South Africa’s economic growth is grounded in manufacturing-led growth and export-oriented economy. 

To this end, the department will support local industries to increase their manufacturing capacity and volumes, enhance their competitiveness and identify suitable export markets for their manufactured products.

Whitfield was speaking during a debate on the Budget Vote of the Department of Trade, Industry and Competition (the dtic) in the National Council of Provinces (NCOP) in Parliament on Tuesday. 

“It is essential that South Africa’s economic growth is grounded in manufacturing-led growth.

“Manufacturing is indeed less volatile and less vulnerable to economic downturns and will create real, sustainable and decent paying jobs for our people. 

“South Africa must also create an export-oriented economy. A dedicated focus on manufacturing growth will also lead to export growth,” he said.

Whitfield said one of the dtic’s key focus areas under the new administration will be a renewed export drive to lower the risk of slow domestic growth, while also identifying high growth opportunities. 

“The creation of an export-oriented economy can be realised through a dedicated focus on implementing measures to boost the competitiveness of local industries in global markets, streamlining export processes, lowering trade barriers, offering financial and technical assistance to exporters and cultivating beneficial trade alliances with other nations,” explained Whitfield.

He said South Africa’s exports in May this year totalled over R178 billion and the country recorded a trade surplus of over R20 billion, significantly higher than forecast, and the widest trade surplus in six months. 

“This is commendable and illustrates the important contribution that exports can make to our fiscus. We will support local industries by building a supportive and competitive ecosystem to drive manufacturing growth. 

“We will also identify intermediate goods that could make our manufacturers more competitive; as well as identify products that we produce competitively and the markets that consume those products in large and/or growing volumes,” Whitfield said. 

Earlier this month, dtic Minister Parks Tau reiterated the commitment to “smart industrial policy”, which will support the successful implementation of government’s development imperatives.

READ | The dtic to support programmes outlined by the President

“In line with what the President said [during the Opening of Parliament Address] when talking about smart industrial policy, the dtic group will implement sectoral plans building on the successes recorded in the automotive, clothing and textiles, retail and agro-processing sectors.

“Smart industrial policy speaks to underlining beneficiation and export-led growth. It highlights the imperatives of the Public Procurement Act that will complement the essential legislative tools to unlock localisation and transformation.

“Every year the South African economy spends 25% of the national wealth created on imported goods. Not only is this propensity to import much greater than our competitor countries, it is also out of sync with our developmental needs,” Tau said.

The Minister said government will reverse this in pharmaceuticals and medical devices, green industries, food products and manufactured goods, among others. He noted that smart industrial policies and programmes are being implemented to respond to the global market trends towards electric vehicles. – SAnews.gov.za

Edwin
Wed, 07/31/2024 - 14:31

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How South Africa’s vehicle retail landscape is adapting to change

Location: MyPR

South Africa’s choice of motor vehicle segment and body shape is changing – perhaps permanently – and, as a struggling market adapts to new realities, brand favourites face challenges too. South Africa’s motor retail industry landscape over the past 15 years has been affected by slow economic growth, poor infrastructure, political uncertainty and a series …

Read moreHow South Africa’s vehicle retail landscape is adapting to change

SA committed to meeting climate change undertakings

Location: News

SA committed to meeting climate change undertakings

Forestry, Fisheries and the Environment Minister, Dr Dion George, has assured of South Africa’s commitment to meeting its undertakings under the United Nations Framework Convention on Climate Change (UNFCCC) and its Paris Agreement.

George said South Africa is working on its second Nationally Determined Contribution, and the country has also committed to updating and submitting its first Biennial Transparency Report.

“We will contribute our fair share and not make false promises that we are unable to keep,” George said.

George was speaking at the Brazil, South Africa, India and China (BASIC) Ministerial Meeting held on Sunday, ahead of the 8th Session of the Ministerial Meeting on Climate Action (MoCA) taking place in Wuhan, China.

The Ministers responsible for climate change from the BASIC countries gathered for the bi-annual meeting to discuss key issues related to the United Nations Framework Convention on Climate Change (UNFCCC) negotiations at the upcoming Conference of Parties (COP29).

These include the need to finalise the rules around carbon markets, adaptation indicators, the Just Transition Pathways Work Programme, the Mitigation Work Programme, and the new collective quantified goal (NCQG) on finance.

In his opening remarks, George said South Africa is focused on implementing ambitious actions to reduce greenhouse gas emissions, including through the Just Energy Transition Investment Plan (JET-IP).

The implementation of this plan includes actions around electricity, electric vehicles and green hydrogen and, said the Minister, South Africa is interested in partnering with BASIC and other countries towards its implementation.

“The Just Energy Transition Partnership (JETP) with some developed countries is only a small component of our much larger energy transition plan, which in turn is only one sector of the all-of-economy and all-of-society just transition we seek in line with the COP28 UAE Vision.

“Our Parliament has adopted a Climate Change Bill [and] since 2011, when we outlined South Africa’s response to climate change in our National Climate Change Response White Paper, we have been putting in place the components of an integrated response. Now, this Bill will integrate all of these components into a robust legal framework, and mainstream climate action across government,” George said.

For South Africa, progress is required in terms of emission reduction obligations, adaptation commitments and the means of implementation “to ensure that we are on track to achieving the 1.5-degree target, and that support for both adaptation and loss and damage will address all likely outcomes”.

The Minister said the country believes that COP29 should enable enhanced, effective and sustained international cooperation on both adaptation and mitigation (equally treated), to achieve the missing ambition in climate actions to date.

“Developed countries’ commitment to providing adequate support to developing countries, is key for the Paris Agreement to be truly applicable to all. The global North should ensure no backtracking on support obligations,” the Minister said.

Ministerial on Climate Action

Meanwhile, MoCA, which is taking place on 22 -23 July 2024, is a key moment for ministers and senior climate diplomats to gather, coming shortly after the UNFCCC intersessional in June.

The meeting will be a chance to elevate sticky issues in climate negotiations to a higher political level.

MoCA is one of the platforms created at the initiative of individual States in support of the UNFCCC negotiations that seeks to identify issues of convergence and divergence at a political level, with a view to bridge building and exploring potential landing zones ahead of the COP.

Convened by China, the European Union (EU) and Canada, MoCA was initiated in 2017 to support the Paris Agreement and the multilateral climate process. - SAnews.gov.za
 

GabiK
Mon, 07/22/2024 - 10:56

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