Naacam 2025: Strategies for Revitalizing South Africa's Automotive Industry

Against a backdrop of significant industry pressures, key government figures this week committed to tangible interventions aimed at securing the future of South Africa’s automotive components manufacturing sector.

Speaking at the opening of the 2025 National Association of Automotive Component and Allied Manufacturers (Naacam) Show, politicians outlined a multi-faceted approach designed to address immediate threats while positioning the industry for the new energy vehicle (NEV) era.

Nelson Mandela Bay Mayor, Babalwa Lobishe, set a local tone, emphasising the metro's commitment to sustaining existing manufacturers and attracting new investment to the region. Her remarks underscored the critical importance of the sector to the Eastern Cape economy, a point robustly expanded upon by Eastern Cape MEC for Economic Development, Environmental Affairs and Tourism, Nonkqubela Pieters.

MEC Pieters firmly established the province as the cornerstone of South Africa's automotive industry, responsible for exporting over half the country's manufactured vehicles. She pointed to the long-standing presence of major Original Equipment Manufacturers (OEMs) such as Isuzu, Volkswagen and Mercedes-Benz and welcomed the anticipated Stellantis production facility.

However, Pieters did not shy away from the challenges, explicitly citing increased import tariffs, persistent energy supply constraints, and logistical bottlenecks as direct threats to businesses and employment.

"Electricity supply remains the decisive factor in attracting and attaining investment," Pieters says, outlining provincial efforts to diversify the energy mix. These include proposed liquefied natural gas infrastructure development and the accelerated deployment of wind and solar projects.

Furthermore, she detailed plans to enhance freight capacity at the Gqeberha port, finalise a provincial hydrogen strategy, and collaborate with Technical and Vocational Education and Training (TVET) colleges and universities on skills development programmes tailored to the NEV transition.

The national perspective highlighted deeper systemic issues. Minister of Employment and Labour, Nomakhosazana Meth, framed global disruptions as potential opportunities for market diversification into Asia, Latin America and Africa. Yet, she starkly illustrated the sector's fragility by referencing the closure of ArcelorMittal's steel operations in Newcastle and Vereeniging.

"The direct impact is over 3,500 jobs lost in steel production," Meth noted, "with ripple effects across the automotive supply chain potentially pushing total job losses beyond 13 000 in the near term."

While acknowledging a R380-million government lifeline provided through InvestSA and the Industrial Development Corporation, Meth argued for proactive measures. She advocated for a comprehensive steel master plan, built on public-private collaboration, to secure buffer stocks, upgrade mini-mills for OEM-certified steel production, and address underlying competitiveness barriers like energy, logistics, and infrastructure.

To support the NEV shift, Meth confirmed the allocation of R1 billion in state funding aimed at catalysing R30 billion in private investment for local manufacturing projects.

Minister of Trade, Industry and Competition, Parks Tau, presented a sobering analysis of the domestic market. He contrasted 2024’s new vehicle sales of 515 712 units with the South African Automotive Master Plan (SAAM) 2035 target of exceeding 780 000 units. Tau highlighted concerning trends: 64% of vehicles sold domestically are imports, undermining local production, while local content in domestically produced vehicles remains static at 39%, significantly below the 60% SAAM 2035 goal. Compounding this, US tariffs now impact R28,7-billion worth of South African automotive exports.

"These pressures have directly contributed to 12 company closures and over 4 000 job losses within the past two years," Tau says, citing recent production suspensions at Mercedes-Benz and others as symptomatic of industrial value erosion. He stressed that a relatively modest 5% increase in local content could unlock R30 billion in new procurement, far outweighing the potential loss of the R4,4-billion US export market.

Tau detailed specific policy responses. Reforms to the Automotive Production Development Programme Phase 2 (APDP2) are underway, including shifting incentive structures to favour manufacturing over mere assembly.

A critical minerals and metals strategy will prioritise beneficiating platinum group metals, copper, and manganese for high-value NEV components like fuel cells and batteries. Significant tax incentives are also being deployed; the Taxation Laws Amendment Act gazetted in December 2024 introduces a 150% capital allowance for qualifying investments in EV and hydrogen vehicle production assets, applicable between March 2026 and March 2036.

On skills development, Tau confirmed collaborations with Tshwane University of Technology, Cape Peninsula University of Technology, and Unisa to develop new EV manufacturing curricula and certification programmes, culminating in a 100-student pilot project next year. He also reaffirmed commitment to transformation targets, including the SAAM 2035 goal of establishing 130 new black-owned manufacturers.

Addressing the broader investment climate, Tau announced plans for a general laws amendment bill designed to fast-track high-impact investments within 90 days, aiming to reduce red tape. A study via the International Trade Administration Commission (ITAC) will examine the impact of imports on local production.

"Our policy response prioritises offering the carrot, not wielding the stick," Tau concluded, "to attract investment and increase the value-add of our component manufacturers."

The collective message from Gqeberha was clear: the government recognises the severe headwinds facing the auto components sector, from energy instability and logistics failures to global market shifts and job losses.

The pledges made at Naacam 2025 represent a concerted, albeit complex, effort to stabilise the industry through infrastructure investment, policy reform, skills development, and targeted financial support, aiming to navigate the transition towards a more resilient and technologically advanced future. The success of these undertakings will be measured in the coming years by their ability to translate commitment into concrete results on factory floors and in export figures.

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UD Trucks: Driving Positive Change in South Africa

For more than six decades, UD Trucks Southern Africa (UDTSA) has established itself as a fixture within the region, known both for its Japanese-engineered sustainable transport solutions and its active role in community development. The company underscores its 'Better Life' purpose through a range of initiatives focused on skills building, job creation, women's advancement, and safety.

Managing Director Filip Van den Heede emphasised the company's local roots: "South Africa is home for our brand. Our commitment extends well beyond manufacturing trucks; we are dedicated to making a positive contribution to the societies we serve. Our flagship CSR projects reflect this, aiming to create lasting impact in the transport industry and people's lives for a better future."

Shared Purpose Drives Industry Collaboration

A key example is UDTSA's ongoing partnership with SaferStops, united by a vision to improve safety, wellness, and working conditions for truck drivers nationwide. In 2025, UDTSA was a major sponsor of the SaferStops Truck Driver Safety and Wellness Symposium. The event drew 384 delegates, including 191 truck drivers, and 28 sponsors. It prioritised driver wellbeing through health check-ups, vision tests, and workshops covering physical, financial, and emotional wellness on the road.

SaferStops also launched the "Leaders in Motion" series at Stellenbosch University, collaborating with the Department of Logistics. This initiative connected young people with the logistics and transport industry. Van den Heede participated, sharing insights on operational and strategic challenges as a Japanese manufacturer in South Africa and offering students hands-on product experience.

Honouring Mandela Through Community Action

Reinforcing its commitment during Mandela Month, UDTSA supported local communities. The team visited Sinqobile Primary School in Soshanguve, donating school shoes, socks, and fresh fruit to enhance student wellbeing and confidence. UDTSA also assisted SOS Children’s Village Mamelodi, providing vulnerable children with essential items like comforters, fitted sheets, oil heaters for winter warmth, and pine desks and chairs, reflecting the spirit of Ubuntu.

Prioritising Road Safety Nationwide

UDTSA partnered with Fleetwatch as a leading sponsor at the 54th Brake & Tyre Watch event in Potchefstroom. This industry-led initiative educates traffic officials on roadside safety inspections. The 2025 event saw a 97% attendance rate among traffic officials, the highest in three years. Eighty-two officials received training, leading to the inspection of four vehicles (one discontinued, three with tyre faults). UDTSA showcased the advanced safety features of its trucks, highlighting the value of collaboration for safer roads.

Investing in Skills for the Future

Skills development and job creation are central to UDTSA's strategy. The company actively participates in the Youth Employment Service (YES) programme, providing hands-on experience, mentorship, and training to over 40 young South Africans in sales and manufacturing this year. This supports national efforts to address youth unemployment.

Further, as an extension of its Ultimate Women Program with the Commercial Transport Academy (CTA), UDTSA is training ten young women from the YES cohort to become professional truck drivers, empowering them with skills and confidence.

Sustaining the Commitment

Janet Frost, HR Director at UD Trucks Southern Africa, outlined the path forward: "As a significant regional brand, we integrate our Better Life purpose and community needs into our core business. We remain committed to investing in and empowering individuals who will shape the future of our industry and South Africa." Through its CSR initiatives and partnerships, UDTSA pledges to continue sharing its success with the communities supporting it.

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Women Leading Change in South Africa's Trucking Industry

A noticeable shift is taking hold within South Africa's transport sector. This change is being driven by women who are not only mastering the long stretches of national road but also actively redefining perceptions of the truck driving profession.

Zureena Samuels, a driver-operator for Frost Logistics, embodies this evolution. Her path into trucking was paved by a family connection to the road, a strong desire for independence, and an appetite for new experiences. "I found my calling behind the wheel of a Code 14 truck," Samuels states simply.

Operating a Volvo FH truck, Samuels specialises in the careful transport of temperature-sensitive goods. Her daily work involves ensuring the integrity of fresh produce, frozen foods, pharmaceuticals, and other perishables requiring strictly controlled environments throughout their journey.

"As truck drivers, we play a vital role in the economy, and I am proud to be doing my part," Samuels explains. "More specifically, as a female truck driver, I feel motivated to succeed at the logistical challenges we encounter daily. As a bonus, I get to experience some truly beautiful destinations across South Africa and meet inspiring people. It brings its own rewards."

Zureena Samuels

Samuels is a vocal advocate for greater inclusivity within transport companies and among industry decision-makers. "It starts with giving women their rightful place," she asserts. "Promote female role models, offer dedicated training and mentorship, and involve women in decision-making processes. We can add significant value if given the opportunity. Ultimately, this benefits everyone and leads to shared success."

Recalling her first day manoeuvring a large truck, Samuels describes it as both nerve-wracking and thrilling. Her inherent determination and adventurous spirit quickly saw her mastering the vehicle's capabilities, marking the beginning of a career built on courage, resilience, and unwavering commitment.

Women truck drivers routinely navigate distinct hurdles, including limited access to suitable facilities, ongoing safety concerns, and persistent gender-based stereotypes. Yet drivers like Samuels demonstrate what is achievable, whether reversing 15-metre trailers with precision, ensuring temperature-sensitive cargo arrives on time and intact, or safely traversing difficult routes in adverse weather conditions.

What fuels her drive? A deep passion for the job and the satisfaction of mastering a skill demanding both mental acuity and physical strength. Equally important is the knowledge that her presence on the road helps clear a path for others following behind.

Samuels emphasises that efficiency in truck driving hinges on meticulous attention to detail, effective time management, and an unwavering focus on road safety. "Long hours alone demand self-motivation and emotional resilience," she notes. "You need to stay calm under pressure and make decisions swiftly. Features like adaptive cruise control and advanced braking systems aren't just conveniences; they are essential for enhancing safety and performance. I firmly believe every truck should be equipped with technology like automatic emergency braking and lane-keeping assist."

As South Africa observes Women's Month in August, Samuels sees it as a period for reflection. "It acknowledges progress while highlighting the challenges and barriers still facing women seeking equal opportunities and fair recognition," she says. "Women’s Month is a call to action to create space for women in sectors that have historically excluded them. It’s time to acknowledge that change isn't just possible; it’s actively unfolding."

"I am living proof," Samuels continues. "Women can contribute meaningfully to both the economy and the industry, driving positive change in the communities we serve. Skills and competence should never be used as barriers. At heart, we all want to earn an honest living to support ourselves and our families. Given the chance, women can rise to any challenge and help transform transport."

Samuels credits a strong support network, particularly her family, for her success. "My father and brothers taught me the ropes and constantly reinforced that 'you can do this.' Their belief became the bedrock of my confidence and career," she shares.

Acknowledging the demands of life on the road – long hours, scarce rest stops, delivery pressures – Samuels prioritises self-care: staying hydrated, eating properly, exercising, and ensuring adequate rest. "In this job, health isn't a luxury; it's a necessity," she stresses. "You need constant alertness. Being healthy provides the energy and sustained focus required to deliver safely and punctually."

Her truck cab serves as a home away from home, even carrying a name inspired by strength and wisdom: Sarabi, after Simba's mother in The Lion King. "Her character embodies mine; soft, but bold," Samuels explains.

Beyond driving, Samuels champions industry improvements. "In South Africa, safety transcends gender," she points out. "Safer, cleaner rest stops with secure parking are essential for all drivers, especially long-haul operators needing reliable overnight rest. Facilities thoughtfully designed for women would be a major step forward, encouraging more to enter the industry with confidence."

For young women contemplating trucking, Samuels offers clear advice: be strong, be smart, be prepared to work hard, and stay true to yourself. "Prioritise safety always, plan meticulously, and never give up," she urges. "Surround yourself with mentors and like-minded pioneers; they offer guidance and support. And crucially, remember to find enjoyment in the journey."

"Empowering women isn't about diminishing the contributions of the many men dedicated to transport," Samuels concludes. "It’s simply about making space for women like me to participate fully too."

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Arise IIP Joins IATF2025 as Premier Partner

Arise Integrated Industrial Platforms (Arise IIP), the pan-African developer and operator of large-scale industrial ecosystems, has been confirmed as an official Premier Partner for the upcoming Intra-African Trade Fair 2025 (IATF2025). The significant trade and investment event is scheduled for Algiers, Algeria, from 4 to 10 September 2025.

Organised by the African Export-Import Bank (Afreximbank) in co-operation with the African Union Commission and the African Continental Free Trade Area (AfCFTA) Secretariat, and hosted by Algeria, IATF2025 anticipates hosting more than 2,000 exhibitors from Africa and other regions. 

The biennial fair aims to stimulate trade within Africa and highlight diverse investment prospects across the continent, with expectations of facilitating trade and investment deals valued at over US$44 billion. This edition will feature a notable contingent of production and service companies, complemented by a dedicated forum focused on investment, trade, and advancing Africa’s economic integration.

Arise IIP, established as a joint venture involving the Africa Finance Corporation (AFC), Equitane, and the Fund for Export Development in Africa (FEDA) – a subsidiary of Afreximbank – focuses on identifying industrial needs within African nations. 

The company designs bespoke solutions to foster sustainable local processing of raw materials, increase export capacity, and enhance trade flows. Its core mission centres on accelerating Africa’s industrial development through the creation of tailored industrial parks and processing zones that leverage local opportunities.

Mrs. Kanayo Awani, Afreximbank’s Executive Vice President for Intra-African Trade and Export Development, welcomed the partnership. She highlighted the established strategic collaboration between Afreximbank and Arise IIP over recent years, driven by shared objectives of promoting intra-African trade, enabling industrial expansion, and reinforcing Africa’s role within global value chains.

Echoing this sentiment, Mr. Amit Agrawal, Chief Operating Officer of Arise IIP, expressed honour at partnering again with the Intra-African Trade Fair. He described IATF as a key platform for connecting stakeholders dedicated to Africa’s industrialisation and economic integration. Agrawal noted that participation in IATF2023 enabled Arise IIP to demonstrate the potential of local manufacturing during its Country Day event, and the company looks forward to building on this progress. 

He emphasised Arise IIP's conviction that intra-African trade is fundamental to realising the continent’s industrial capabilities, stating that IATF2025 presents a significant opportunity to form new partnerships, attract investment, and speed up the development of sustainable and inclusive industrial ecosystems.

Arise IIP’s operational footprint extends across multiple African nations, including key projects such as the Gabon Special Economic Zone (GSEZ), the Glo-Djigbé Industrial Zone (GDIZ) in Benin, the Plateforme Industrielle d’Adétikopé (PIA) in Togo, the Bugesera Special Economic Zone (BSEZ) in Rwanda, and the Industrial Platform Remo Free Zone (IPRFZ) in Nigeria.

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