Auto industry needs to gear up says Toyota boss

To fully cement the viability and sustainability of the South African auto industry new vehicle sales volumes need to exceed 600 000 units a year according to Andrew Kirby, President and CEO of Toyota South Africa Motors (TSAM) who made the statement at his annual State of the Motor Industry address recently – at which event Toyota also revealed six new models for launch in the first quarter.

Kirby’s, keynote address titled “The Year That Was”, offered a deep dive into the challenges and opportunities facing South Africa’s motor industry and emphasised the urgent need to boost vehicle sales to attract increased foreign investment. He also stressed the critical role of government policies noting, while recent incentives for battery electric vehicle (BEV) production were a step forward, they remain insufficient to secure the industry’s future.

Andrew Kirby

“South Africa’s automotive sector is grappling with de-industrialisation and a decline in local content, which has dropped below 40% for domestically produced vehicles,” he said. However, he maintained cautious optimism, projecting a 3,7% growth in sales for 2025, reaching 535 000 units, attributing this to potential interest rate cuts and stabilising fuel prices.

Adding to the discussion, Mikel Mabasa, CEO of NAAMSA, highlighted South Africa’s political stability as a rare advantage in the region, expressing hope for what he termed a “year of abundance.”

Emerging Automotive Trends

Kirby identified five major trends reshaping the industry:

- Shifting Consumer Preferences: South Africans are increasingly opting for smaller, more affordable vehicles, with a 2,27% drop in the average passenger car price between 2023 and 2024.
- SUV Dominance: SUVs now account for over half of passenger car sales, with the number of available models rising from 114 in 2018 to 166 in 2024.
- Demand for In-Car Technology: Features such as customisation, connectivity and voice control are becoming standard, even in entry-level models.
- Rise of Indian and Chinese Production: Chinese and Indian vehicle imports have surged, making up 37% of local sales in 2023, compared to just 18% in 2018. Meanwhile, locally produced vehicle sales have dropped from 46% to 43%.
- The NEV Transition: The adoption of hybrid and electric vehicles is gaining traction, however, widespread adoption of BEVs in South Africa is unlikely before 2029 without stronger government incentives.

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“The industry’s growth will depend on collaboration, adaptability and a supportive policy framework – paving the way for a brighter future in the years ahead,” he says.

Steel Woes

South Africa's automotive industry has emphasised the urgent need for a robust and sustainable local steel supply chain, citing its critical role in vehicle production, particularly in safety-critical components. Kirby expressed concern about challenges facing the steel sector, including policy issues, logistical inefficiencies, and electricity costs, all of which are contributing to rising uncertainty.

"We cannot rely on scrap metal with impurities, which some local suppliers currently provide. This makes the stability of local steel production absolutely vital for us," he says. "The recent announcement regarding the risks to Newcastle’s operations is very serious for us. It’s encouraging that open discussions are underway, and there may be positive outcomes, but the underlying challenges are clear."

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Three key issues were identified as critical to resolving the steel industry’s struggles:

- Policy Concerns: The decentralisation of scrap metal exports has created an imbalance in the local market, with industries indirectly subsidising this system.
- Transport Costs: High logistical expenses are significantly driving up the cost of steel production.
- Electricity Prices: The sector continues to grapple with exorbitant energy costs, which undermine competitiveness.

Steel constitutes approximately 25%–30% of the local content in South African-manufactured vehicles, a figure that remains constant even with the transition to battery electric vehicles (BEVs). This highlights the importance of ensuring the sustainability of the steel industry for the future of the automotive sector.

"While we acknowledge the complexity of these challenges, we believe structural issues in the steel sector must be addressed by experts in the field. As an automotive industry, we are committed to supporting and collaborating where we can guide these efforts in the right direction," added Kirby.

A meeting with the CEO of ArcelorMittal South Africa (AMSA) further underscored the importance of increasing local demand for steel. AMSA urged original equipment manufacturers (OEMs) to source more steel domestically to help stabilise and grow the sector. Out of the seven OEMs operating in South Africa, four currently source most of their steel locally, with ongoing discussions aimed at encouraging further uptake.

"We need to create an environment where local steel production is competitive and sustainable. Investment in infrastructure and achieving scale is critical, not just for the steel sector but for the broader automotive industry," he says.

Looking back, Kirby said 2024 was anticipated to follow a predictable trajectory, with a softer first half and stronger second half. However, this pattern failed to materialise. While the resolution of the energy crisis – with 300 days of uninterrupted electricity supply provided much-needed economic relief, ongoing challenges in transport and logistics hampered recovery efforts.

“The national elections also played a pivotal role. Although they concluded smoothly, pre-election tensions impacted consumer and business confidence, delaying economic recovery. By year-end, vehicle sales reached 515 000 units, falling short of the forecasted 540 000. The taxi sector’s dramatic 60% contraction, driven by fraud and financing issues, exacerbated the decline. Adjusting for this anomaly, the market would have only dropped by 1,3%.

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“The South African automotive industry remains below pre-pandemic levels, with sales still trailing 2019 figures. For sustainable growth, experts suggest the market must exceed 600 000 annual units. Falling short of this benchmark makes it difficult for the sector to achieve scale and long-term stability,” he says.

Consumer Trends: Affordability and Preference Shifts

Affordability emerged as a dominant theme in 2024. The average selling price of passenger vehicles declined, reflecting a clear shift towards more budget-friendly options, particularly in the B-segment. This trend, driven by rising economic pressures and tighter credit conditions, was also evident in increased used car sales.

SUVs and crossovers continued their meteoric rise in popularity, now accounting for 53% of passenger vehicle sales. The introduction of new models has further bolstered this segment, particularly in premium categories. Consumer preferences have also evolved, with in-car experiences such as advanced infotainment systems, connectivity, and luxury features becoming key purchase drivers, even for mid-range vehicles.

“The automotive sector faces significant structural hurdles. Despite the existence of a national automotive master plan since 2018, little progress has been made in optimising the local market. The failure to implement key elements of the plan has stifled growth, while efforts to integrate regional markets through the African Continental Free Trade Agreement remain incomplete.

“Additionally, the lack of incentives to promote new energy vehicles (NEVs) is hindering South Africa’s ability to attract investment in this area. While a new tax mechanism offers a 35% incentive for capital investment in NEVs, the local market for these vehicles remains negligible, creating a barrier to growth in domestic production and exports.”

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Globally, Chinese and Indian vehicle manufacturers are asserting dominance, with China now accounting for 29% of global vehicle production. This trend is reshaping competition in South Africa, as both nations expand their influence in emerging markets.

At the same time, global conflicts, from the Russia-Ukraine war to Middle East tensions, have added to supply chain disruptions and market volatility. Climate-related challenges have also begun to impact South Africa, further complicating the operating environment.

“To thrive, the South African automotive industry must overcome structural inefficiencies and prioritise market integration and innovation. Affordability will remain a key factor influencing consumer behaviour, alongside a growing preference for SUVs and advanced in-car experiences.

“The sector’s future also hinges on its ability to embrace new energy vehicles, align with global trends, and secure regional trade agreements. With these measures in place, South Africa could unlock the growth potential necessary to surpass the critical 600 000-unit threshold and secure long-term sustainability.”

Vehicle Reveals

The event wasn’t just about industry insights. TSAM’s Senior Vice President for Sales and Marketing, Leon Theron, unveiled sic new models including:

- The updated Corolla Cross, featuring a refreshed design and enhanced safety features.
- The powerful Fortuner GR-S, now boasting 165kW and 550Nm of torque.
- The refined GR Yaris Upgrade, with an impressive 210kW output and a new eight-speed automatic option.
- The distinctive Hilux Legend 55, showcasing wide-body styling and performance upgrades.
- The enhanced Lexus LX and its newly introduced hybrid variant, the 700h.
- The all-new Lexus GX, a rugged yet luxurious off-roader debuting with an adventurous Overtrail variant.

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Hino 700: The Ultimate Cattle Freighter for Namibia's Farmers

Trucks transporting cattle are not an uncommon sight on the road, especially in rural areas but, other than seeing them as an impediment to progress, most road users give no thought to the weight considerations of 33 or more oxen.

Commissioned by Gobabis Toyota, there is a Hino 700 that was launched into the market last year, used as a cattle freighter in Namibia and, with the trailer attached, is capable of carrying 56 oxen each weighing around 230 kilograms, split evenly between the truck and the trailer.

The Hino 700 2841 6x4 freight carrier is paired with a custom-built trailer manufactured by Motor Body Construction (MBC) in Johannesburg. This vehicle is operated by dealership principal Theo Redelinghuys as a dedicated service for the local farming community.

This initiative has been especially beneficial during drought conditions, enabling farmers to move livestock to auctions or abattoirs at affordable rates. While most trips are within Namibia’s expansive Omaheke district, the rig has also been used for journeys across the country.

Having clocked more than 28 000 km, the truck has demonstrated its suitability for Namibia’s diverse terrain, from rough gravel tracks to paved roads, with an impressive average fuel consumption of 2,6 km/litre.

“The Hino 700 is ideal for this demanding role, thanks to its rear axle with diff-lock and cross-lock capabilities, advanced driver safety features, and the Hino hallmark of quality, durability, and reliability,” says Redelinghuys.

Recognising the need to support farmers with ageing transport fleets, Gobabis Hino developed this tailored solution to meet the challenges of Namibia’s remote, unpaved landscapes. The vehicle, boldly branded to echo Hino’s Dakar Rally trucks by Vista Branding in Gobabis, has received overwhelmingly positive feedback from the farming community.

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Africa Automotive - 2024 Growth of Africa's Automotive Sector

In 2024, Africa's automotive sector witnessed notable progress, primarily spurred by increased local production and advantageous trade policies. The continent is attracting a variety of automakers, both international and local, who recognise the potential within the region. This interest has led to a rise in automotive manufacturing plants across multiple African countries, reflecting a deliberate move towards regional production. The industry is also seeing a diversification of vehicle models being produced, catering to both local market demands and export opportunities.

Efforts to bolster the automotive industry are evident in the investments being made in infrastructure and technology. Countries such as South Africa, Nigeria, and Morocco are key players, offering a blend of skilled labour and favourable business environments. This development is creating job opportunities and fostering skills transfer, contributing to broader economic growth.

Another critical factor in this growth is the increasing collaboration between governments and industry stakeholders to create supportive policies and initiatives. These include tax incentives for manufacturers, streamlined customs procedures, and efforts to harmonise vehicle standards across the continent. Such measures are aimed at making Africa an attractive destination for automotive investment.

Furthermore, the push towards sustainability is also shaping the sector, with an increased focus on electric vehicles and green manufacturing practices. This trend is aligning with global shifts towards environmentally friendly motoring solutions, positioning Africa as a forward-thinking player in the global automotive arena.

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Impact of the African Free Trade Agreement

The African Continental Free Trade Agreement (AfCFTA) has the potential to transform the automotive industry across the continent. By connecting more than1,3-billion people into a single market, the AfCFTA provides significant opportunities for automakers to expand their reach and streamline operations. Additionally, a World Economic Forum report anticipates that global business under this agreement could boost the African automotive industry by $12-billion by 2027. These developments promise a more integrated market, reducing tariffs and improving trade efficiencies among African nations.

The removal of trade barriers under the AfCFTA is expected to ease the movement of automotive components and finished vehicles across borders. This will likely result in lower costs for manufacturers and consumers alike, fostering a more competitive market environment. Additionally, the agreement encourages regional value chains, allowing different African countries to specialise in various stages of vehicle production. This approach can lead to increased efficiency and higher-quality outputs.

Moreover, the harmonisation of regulations and standards across member states will simplify compliance for automakers, making it easier for them to operate in multiple countries. This is particularly beneficial for small and medium-sized enterprises looking to enter the automotive market. The AfCFTA's emphasis on economic integration and industrialisation aligns with the broader goal of sustainable development, positioning Africa as an increasingly attractive destination for automotive investment.

Indicators of Growth in the Automotive Industry

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The positive trajectory of Africa's automotive sector can be seen through various indicators. Afreximbank, in collaboration with the African Association of Automotive Manufacturers, is actively supporting industry growth. By harmonising automotive standards, developing training programmes, and providing financing, they aim to facilitate industry growth, with Afreximbank committing $1 billion to these efforts.

Vehicle production and sales figures are on the rise, reflecting increased consumer demand and manufacturing capacity. The establishment of new manufacturing plants in various African nations demonstrates robust confidence from both international and local investors. These investments are not only boosting production but also generating employment opportunities and enhancing skill development.

Furthermore, the automotive sector is benefiting from a rise in partnerships and joint ventures aimed at leveraging local expertise and global technology. This collaborative approach is leading to improved production processes and the introduction of innovative vehicle models tailored to the African market.

Another crucial indicator is the development of supply chain networks that are becoming more sophisticated, ensuring the efficient movement of automotive components and finished vehicles. These advancements are essential for meeting the growing demand for cars and motoring solutions across the continent.

In summary, these indicators highlight the increasing dynamism within Africa's automotive industry, showcasing a sector poised for sustained growth and development.

Industry Challenges

The African automotive industry, despite its promising growth, faces a range of challenges that could impede its progress. One of the most pressing issues is the inadequacy of infrastructure. In many regions, road networks and port facilities are not sufficiently developed to support efficient supply chain operations. This situation creates bottlenecks that can delay the movement of automotive components and finished vehicles, thereby increasing costs and affecting competitiveness.

Economic instability in some African nations also poses significant risks to the industry's growth. Fluctuations in currency values and inflation rates can create an unpredictable business environment, making it difficult for automakers to plan long-term investments. Additionally, political instability in certain areas can deter potential investors and disrupt existing operations.

Another challenge lies in the regulatory landscape, which can vary significantly from one country to another. This lack of uniformity complicates compliance for automakers, particularly those looking to operate across multiple African nations. While efforts are being made to harmonise vehicle standards under initiatives like the AfCFTA, achieving comprehensive regulatory alignment remains a work in progress.

Furthermore, access to financing is a critical hurdle for many local enterprises looking to enter the automotive sector. High interest rates and limited availability of credit can stifle innovation and restrict the growth of small and medium-sized enterprises that are essential for a vibrant automotive ecosystem.

Labour issues, such as the availability of skilled workers, also present obstacles. While some countries are investing in training programmes, the overall skill level of the workforce needs to be elevated to meet the demands of advanced automotive manufacturing.

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Technological Progress and Innovation

Technological advancements are playing a pivotal role in Africa's automotive evolution. There is a noticeable rise in electric vehicle production and adoption, driven by the continent's commitment to sustainable development. Pilot projects for sustainable vehicles are already underway in Rwanda, Egypt, and South Africa, with e-mobility startups emerging across the continent. The introduction of smart technologies in vehicles, such as advanced driver-assistance systems and connectivity features, highlights Africa's readiness to embrace innovation and align with global automotive trends.

Market Potential and Consumer Preferences

Africa's automotive market is burgeoning, spurred by emerging economies and an expanding middle class. These factors are significantly reshaping consumer preferences across the continent. There's a noticeable shift towards vehicles that prioritise sustainability, reflecting broader global trends towards environmentally conscious motoring. This change in preference offers automakers a valuable opportunity to introduce eco-friendly models that align with the increasing environmental awareness among African consumers.

In addition to the demand for sustainable vehicles, there's a growing appetite for advanced features and technologies in cars. African consumers are becoming more discerning, seeking vehicles equipped with the latest in safety, connectivity, and comfort. This trend is pushing automakers to innovate and adapt their offerings to meet these evolving expectations.

Moreover, the rise in disposable income among the middle class is leading to a higher demand for a diverse range of vehicles, from economical models to luxury cars. This diversity in consumer demand is encouraging manufacturers to broaden their portfolios to cater to different segments of the market. The interest in luxury and premium vehicles, in particular, is indicative of a market that is maturing and becoming more sophisticated.

The burgeoning interest in electric vehicles is another critical aspect of the changing market dynamics. Governments and private entities alike are increasingly promoting electric mobility as a sustainable alternative to traditional combustion engines. This is not only in line with global sustainability goals but also addresses local issues such as urban air pollution and fuel dependency.

Overall, the evolving market potential and consumer preferences in Africa present a promising landscape for the automotive industry. By responding to these trends, automakers can tap into a market that is both growing and increasingly sophisticated in its demands.

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Future Outlook and Opportunities

Looking ahead, Africa's automotive sector is poised for further advancement, driven by a combination of strategic investments, policy reforms, and technological innovation. The region's commitment to enhancing infrastructure and reducing trade barriers sets the stage for a more integrated and efficient automotive industry. Continued collaboration between governments and industry stakeholders will be crucial in creating an environment conducive to growth and innovation.

One of the most promising opportunities lies in the development of electric vehicles, with several countries already pioneering initiatives in this space. The shift towards sustainable motoring not only aligns with global trends but also addresses local challenges such as air quality and fuel dependency. This focus on green technology could position Africa as a leader in the adoption of environmentally friendly automotive solutions.

Additionally, the rising middle class and increasing urbanisation are expected to drive demand for a diverse range of vehicles, from budget-friendly models to premium cars. This expanding market offers a lucrative opportunity for automakers willing to tailor their offerings to meet the specific needs and preferences of African consumers.

Partnerships and joint ventures between local firms and global automakers are likely to enhance the transfer of knowledge and technology, fostering innovation and boosting production capabilities. As these collaborations flourish, they will contribute to the overall competitiveness of Africa's automotive sector on the global stage.

In summary, the future of Africa's automotive industry holds significant promise, with numerous opportunities for growth and development as the continent continues to embrace modernisation and innovation.

Originally published on CHANGECARS

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Volvo Trucks get five star rating

In a historic first, the European consumer testing organisation Euro NCAP has evaluated the safety of extra-heavy commercial trucks, with Volvo Trucks' flagship models — the Volvo FH and Volvo FM — achieving the top rating of five stars, with the Volvo FM achieving the highest overall score among all tested trucks.

The Volvo FH and FM Aero models excelled across all safety metrics, earning the prestigious City Safe award, which recognises vehicles designed to protect vulnerable road users in urban environments.

“This remarkable achievement confirms Volvo Trucks’ leadership in safety,” said Roger Alm, President of Volvo Trucks. “Safety is one of our core values and has been a cornerstone of our heritage since the company’s inception. With every new product, we push the boundaries to make our trucks even safer.”

Setting a New Benchmark for Truck Safety

Euro NCAP’s five-star rating underscores Volvo Trucks’ exemplary performance in key areas such as driver support and collision avoidance, enhancing safety for both drivers and road users. The City Safe criteria further highlight the Volvo FM and FH's superior visibility and active safety systems, crucial for navigating urban traffic.

Anna Wrige Berling, Volvo Trucks’ Director of Traffic and Product Safety, emphasised the broader impact of these results. “This recognition validates our commitment to exceeding legal safety standards as we strive towards a future with zero accidents involving our trucks. Euro NCAP ratings will not only help customers make informed decisions but also encourage manufacturers to innovate continuously.”

Global Safety Standards Reflect Volvo’s Commitment

Volvo Trucks extends these safety innovations globally, including in South Africa, where the same rigorous standards apply despite differing local regulations. By investing in advanced safety systems and training, the company aims to enhance road safety and protect all road users.

Euro NCAP, established in 1996 and headquartered in Belgium, is renowned for setting the safety benchmark for passenger vehicles across Europe. With its first foray into heavy commercial vehicles, the organisation assessed trucks across three key areas:

- Safe driving: Including driver monitoring, vision systems, and speed assistance.
- Collision avoidance: Evaluating performance in avoiding crashes with cars, pedestrians, and cyclists, as well as low-speed manoeuvring and lane departure incidents.
- Post-crash readiness: Focusing on rescue information and emergency response.

Euro NCAP plans to expand its truck testing criteria to include crash protection and vehicles across different transport segments, further raising the bar for safety standards.

Volvo Trucks’ success in these inaugural tests underscores its dedication to road safety and innovation, setting a new benchmark for the global trucking industry.

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Africa Automotive: Aligning leadership with decarbonisation goals

The final event of the 2024 CEO Breakfast series took place onrecently at the Expo Centre in Nasrec, Johannesburg, marking the opening day of the 2024 editions of Automechanika Johannesburg and Futuroad Expo.

The event, led by Andile Africa, CEO of the Automotive Industry Development Centre, began with an opening address from Michael Johannes, Vice President of Mobility and Logistics at Messe Frankfurt.

Johannes spoke about the rapidly evolving automotive aftermarket sector and the critical role that Automechanika plays in keeping the industry at the forefront of technological advancements. He emphasized the need for ongoing training and education, ensuring that industry professionals stay ahead of innovations in products, technologies, and systems.

Duncan Mutengwe, Acting CEO of the National Regulator for Compulsory Specifications (NRCS), provided a comprehensive overview of compliance in the automotive sector. He highlighted the importance of adhering to international safety standards as the industry embraces new technologies such as electric vehicles (EVs) and advanced safety systems like automatic emergency braking and collision avoidance.

Mutengwe also discussed the future of autonomous driving, noting that this emerging trend will necessitate further safety regulations. He outlined the NRCS's process for ensuring vehicle safety, including manufacturer registration, testing, certification, and final approval.

Victor Radebe, Chief Director of Programme Management in the office of the Gauteng Premier, offered valuable insights into the provincial government's involvement with the automotive and fleet industries.

Radebe emphasized sustainability and innovation as key pillars guiding the government’s policy decisions. He highlighted the collaboration between Uber and Chinese automaker BYD to deploy 100 000 electric vehicles, showcasing the potential of industry partnerships to drive the future of EV adoption. He also pointed out that fleet managers will need to rethink their strategies, as electric vehicles are transforming fleet management into a data-driven, IoT-based model.

Greg Cress, Principal Director of Automotive and eMobility at Accenture South Africa, addressed the growing pressure on fleet managers to adapt to decarbonisation and the rise of electric vehicles. Drawing from an Accenture survey of 450 senior fleet managers worldwide, Cress outlined five strategies for successfully transitioning fleets to electric vehicles.

These included accepting the uncertainty of the business case, aligning leadership with decarbonisation goals, and piloting EV programs to overcome hesitation. He stressed the importance of convincing management boards of the financial viability of decarbonisation and recommended focusing on fleet electrification, conducting feasibility studies, and leveraging EV data to improve efficiencies.

Lunga Qegu, Head of Sales Development at Investec for Business, spoke on the positive economic trends emerging in South Africa, particularly the growth of the EV sector. He shared how Investec is assisting businesses with operational efficiency, highlighting the bank's expertise in importation and freight forwarding. Qegu also noted a noticeable increase in the importation of battery and electrical technology, indicating the continued growth of the sector and a broader move toward decarbonisation.

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Africa Automotive: AfCFTA can help resolve climate change

Leaders from across Africa gathered in Washington recently for the eighth Babacar Ndiaye Lecture, focusing on Africa’s challenge of balancing short-term development with long-term climate goals. The event, titled ‘Saving Lives Today versus Saving the Planet for the Future: Can the AfCFTA Resolve the Climate Change Dilemma?’ centred on the potential of the African Continental Free Trade Area (AfCFTA) to drive sustainable growth while advancing the continent’s climate commitments.

Keynote speakers, including HE Professor Benedict Oramah, President of the Afreximbank Group, reflected on the vision of Dr. Babacar Ndiaye, a prominent voice in African development, highlighting his concerns about climate change’s impact on Africa’s future.

Oramah stated, “Climate change is the greatest threat to development, particularly in Africa, where millions of people depend on the environment for their livelihoods.” He stressed that a push for Africa to decarbonise without considering its current needs could stifle growth in a region where 600 million people lack access to electricity.

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The AfCFTA, the largest free trade area by participating countries, could be instrumental in cutting carbon emissions through localising production and reducing the need to ship raw materials long distances. By creating value-added products within Africa, proponents argue that the AfCFTA could position Africa as a leader in the green economy and lay the groundwork for an economically and environmentally sustainable future.

In his address titled ‘Sustainable Infrastructure for Africa’s Future: Harnessing Innovation and Partnerships’, Professor Yemi Osinbajo, Nigeria’s former Vice President, emphasised AfCFTA’s potential to create jobs, reduce emissions and spark innovation in green industries.

He noted laws in 42% of African countries now require the local processing of raw materials, allowing nations to retain more economic benefits while mitigating emissions from extensive shipping. Osinbajo cited studies showing that fully implementing AfCFTA could increase intra-African trade by 35% by 2045 while raising greenhouse gas emissions by less than 1%.

Highlighting the example of Guinea, Osinbajo pointed out that if the country processed its bauxite domestically using renewable energy, it could save an estimated 335-million tonnes of carbon dioxide per year—a notable contribution to global emissions reductions. A similar approach, he suggested, could apply across African resource industries, potentially saving billions and creating hundreds of thousands of jobs.

Image: Aamir/Pexels

Dr Rania A. Al-Mashat, Egypt’s Minister for Planning and Economic Development, pointed to the financial challenges Africa faces in achieving sustainable development goals, underscoring the continent’s minimal contributions to global emissions yet disproportionately high costs in adapting to climate change.

“Africa bears the burden of financing climate resilience for essential development needs,” she said, calling for international collaboration to help Africa progress sustainably.

UN Deputy Secretary-General Amina J. Mohammed echoed this sentiment, stressing the urgent need for access to concessional financing for green investments.

“Renewables can grow economies, create jobs, and fuel development—especially for the 600-million Africans without electricity,” Mohammed said. She also highlighted the importance of inclusive policies that support women and youth in building climate-resilient economies.

The lecture concluded with a renewed commitment from Afreximbank to fund sustainable infrastructure across the continent, positioning the AfCFTA as a central component in Africa’s pathway to a low-carbon, prosperous future.

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Suzuki Marine Cleans Hennops River: A Success Story

Some 490 kilograms of trash was cleared out the Hennops River area in Centurion, Pretoria recently as part of the global ‘Suzuki Clean Ocean Project’ that aims to contribute towards cleaner oceans and rivers in countries around the globe.

Suzuki Marine has long been committed to environmental sustainability, and its latest initiative in South Africa reflects this ongoing mission. The company’s environmental programme, which focuses on three core commitments, aims to make a significant impact on the planet.

1. Clean-Up the World Campaign

Since 2010, Suzuki Marine has organised annual clean-up events, drawing support from more than 9 000 volunteers across 44 global Suzuki distributors. These dedicated efforts, along with help from the public, have led to a total of 17 002 participants by the end of 2023. The clean-up activities focus on removing waste from local waterways to help restore and protect these vital ecosystems.

2. Reducing Plastic Packaging

In a bid to reduce its environmental footprint, Suzuki Marine is working to decrease plastic waste by cutting down on plastic packaging in its products. By switching to eco-friendly alternatives such as paper, the company saves over five tonnes of plastic annually.

3. Tackling Marine Micro-Plastics

In a groundbreaking move, Suzuki Marine has been equipping its outboard motors with its Micro-Plastic Collecting Device (MPC) since July 2022. This innovative filter collects micro-plastics while the motor is in use, helping reduce pollution in the world's oceans.

Pollution on the Hennops River

Hennops River Clean-Up

In October 2024, Suzuki Marine South Africa joined forces with two non-profit organisations, Hennops Revival and Deep Water Movement, to tackle pollution in one of Gauteng’s most significant rivers—the Hennops River, which flows through Centurion, Pretoria. Due to rapid urbanisation, the river has suffered from heavy pollution, with litter and hazardous waste constantly threatening its banks and waters.

"Water is one of the most critical resource issues of our lifetime and the lifetimes of future generations. Suzuki is proud to support Hennops Revival and Deep Water Movement in restoring the health of a river so close to home," said Tanja Maes, Marine Manager at Suzuki Auto South Africa.

The event exceeded expectations. "We initially set a goal to fill 50 trash bags," said Maes. "After just two hours, our volunteers collected an incredible 241 bags, amounting to over 490 kilograms of waste."

More than 400 kilograms of trash

The safe disposal of the collected waste was managed by Hennops Revival and Deep Water Movement, ensuring proper separation of hazardous materials before delivery to a registered landfill.

Maes hailed the clean-up as a great success, noting that its positive impact would be felt not only by the river but also by the local community.

For more information about Suzuki’s ongoing environmental efforts, visit the Suzuki Clean Ocean Project at Suzuki Marine.

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Volkswagen Launches GenFarm Project in Rwanda

Gashora, Rwanda – Volkswagen Group Africa has officially commenced operations at its multifunctional facility aimed at revolutionising modern farming across the continent. Located in Gashora, approximately 60 kilometres from Kigali, the facility is a key component of the ambitious GenFarm Project, which integrates electric tractors into sustainable agricultural practices.

This initiative was formalised in June 2023 when Volkswagen Group Africa signed a Memorandum of Understanding (MoU) with the Rwandan government to secure land for the GenFarm Project. The facility aims to create a reliable and eco-friendly mechanised farming service for rural communities, while also providing essential mobility solutions for the transport of goods and people.

Martina Biene, Chairperson and Managing Director of Volkswagen Group Africa, says: “We are expanding our presence in Africa, with Rwanda identified as a vital growth market. This initiative underscores our commitment to sustainability and our capacity to deliver mobility solutions that benefit both urban and rural communities. The GenFarm Project embodies our strategy to generate meaningful societal and environmental value through sustainable mobility.”

The pilot project in Rwanda is a collaboration involving Volkswagen Mobility Solutions Rwanda and the Volkswagen Group Innovation Centre Europe. Central to this initiative is the Empowerment Hub (e-Hub), which currently operates from specially equipped standard containers during its initial phase.

Plans are underway to construct a permanent e-Hub, anticipated to be operational by mid-2025. This facility will feature a photovoltaic power system alongside energy storage solutions, providing clean energy and operational space for agricultural cooperatives. The e-Hub will facilitate e-tractor services, e-scooter services and space for various business activities.

Dr Nikolai Ardey, Managing Director of Volkswagen Group Innovation, elaborated on the e-Hub’s functionality: “Our goal is to offer a range of services through the empowerment hubs. Farmers have the option to book an e-tractor with a trained driver, ensuring sustainable farming practices are accessible and affordable. A standout feature of this project is the battery swap system, which allows the tractor's battery to integrate with the hub's energy infrastructure, enhancing energy storage capabilities.”

The GenFarm Project has garnered support from prominent organisations, including the Rwanda Institute for Conservation Agriculture (RICA) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. RICA focuses on training the next generation of farmers through research, education, and extension services, while GIZ, on behalf of the German government, is procuring essential machinery and assessing services the hub will offer to local agriculturalists.

The pilot phase of the GenFarm Project will specifically benefit agricultural cooperatives in the Bugesera district, particularly in Gashora.

Over the past three decades, Rwanda has witnessed remarkable economic progress, with the agricultural sector playing a crucial role in enhancing the livelihoods of its citizens and sustaining national economic growth. Currently, agriculture contributes approximately 25% to the country’s Gross Domestic Product (GDP), underscoring its significance in Rwanda’s development narrative.

As the GenFarm Project unfolds, it promises to deliver innovative solutions that could reshape agricultural practices and mobility in rural areas, aligning with Rwanda’s vision for a sustainable future.

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Hino 700 Series: Custom Trucks for South Africa's Heavy-Duty Market

Hino South Africa has marked a successful first year in the market with its locally assembled 700 Series extra heavy-duty trucks, now introducing an opportunity for buyers in specific segments to receive trucks customised for their operational needs.

Itumeleng Segage, General Manager of Hino South Africa, explained: "We have identified key segments within the extra heavy market, and our Post Production Operations (PPO) unit is now ready to facilitate the fitment of special equipment to tailor trucks for various applications."

Among the modifications available, Hino SA will oversee the installation of essential components for side tippers, including a power take-off system provided by ZF, along with the hydraulic piping and fluid tank. For those utilising Hino 700 trucks as fuel or Hazchem tankers, the necessary hydraulic pump and piping will be pre-installed before delivery, although customers will need to obtain the appropriate Hazchem compliance kit to meet regulatory standards.

Hino 700 in front of the Toyota GR Racing Academy

Originally aimed at regional haul operators, the Hino 700's cost-effectiveness and impressive fuel efficiency — without the need for AdBlue — has attracted the attention of long-haul operators. However, a limitation for these longer journeys is the single sleeper cab design, which is not ideal for teams of two drivers.

In response, Hino has developed a locally designed sleeper pod that attaches to the cab's roof, enhancing aerodynamics while providing ample sleeping space for an additional driver, complete with lighting and two windows. This solution, inspired by practices in Japan, has already received positive feedback from South African operators trialling the new feature.

Further options available through Hino SA’s PPO unit include aluminium alloy rims and aerodynamic kits designed to improve fuel efficiency. Segage emphasised all PPO modifications are fully compliant with Hino's truck warranty, ensuring peace of mind for operators.

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First li-ion recycling plant opens in South Africa

The disposal of batteries from growing volumes of electric cars has become a global problem with limited facilities in place to recycle those units – but there is now an operational facility in Germiston, Gauteng able to handle not only car batteries but lithium-ion batteries from cell phones and other modern devices.

Cwenga Lib has opened the country’s first lithium-ion battery recycling facility – a milestone not just for South Africa, but for the entire Southern Hemisphere.

The Cwenga Lib process is innovative in its scale and resources. Where mega plants in Asia are constructed to cater to the mass markets abroad using harsh chemicals, huge energy requirements and highly hazardous working conditions, the Cwenga Lib process is unique.

It is efficient at room temperature, with reagents that are food safe and can be scaled to serve smaller communities or single manufacturers who want to locally recycle their own production.

“The processing facility we launched is an example of the modular type recycling stations we can deploy around South Africa and beyond,” says Cwenga’s Ed Hardwick. “They are run by 2-4 operators and produce metal oxides of various quality, depending on what the market in that area needs – back into battery production, pigment grades or even agricultural uses.”

Pottery made with glaze containing recovered cobalt from the first batch of recycled cell phone batteries was auctioned off at the event, with all proceeds going to COPESSA

“Battery waste is a wealth that is currently sitting in our landfill sites waiting for the urban mining movement. Cobalt, nickel, lithium and manganese are all imported into our country as finished products and then left to harm our environment with no responsibility given to the manufacture of those goods.

“It is working with those who can manage producer responsibility, vitalise communities and educate collectors that we can get that potential hazard out of our environment and back into our economy.”

Cwenga Technologies is the parent company to Cwenga Lib and Hardwick says: “We are fortunate our sales of purification products into the hydrometallurgy, water and food industries enable us to reinvest some of that capital into self-funded research on activated carbons and ion exchange resins.”

Battery recycling involves separating the materials inside spent batteries so they can be reused. The process typically begins with manual sorting of different battery types, followed by shredding the batteries into small pieces. Specialised techniques, such as magnets or chemical treatments, are then used to extract the various metals.

Some of these recovered materials, including lithium and cobalt, are crucial for making new batteries, while others, like manganese and zinc, may be repurposed for agriculture as fertiliser.

Until now, South Africa’s battery recycling efforts have focused on lead-acid car batteries. For lithium-ion batteries, recycling has been limited, requiring expensive exports to facilities in Europe or China. This led to many batteries ending up in landfills.

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