Deputy President Paul Mashatile has warned that South Africa’s automotive sector faces serious risks unless a new trade agreement is reached with the US to address steep tariffs. Speaking at the 2025 Naacam Show in Gqeberha, he said the proposed deal could ease pressure on an industry that employs 115,000 people.
The US’s 30% tariff on certain imports threatens to disrupt South Africa’s auto exports and open the door to redirected goods from over 130 other trading partners, Mashatile explained. “Failure to secure a fair agreement with the White House will hurt our entire supply chain,” he told industry delegates.
With 12 component manufacturers already closed this year—costing 4,000 jobs—the Deputy President stressed the urgency of protecting the sector. He pointed to rising unemployment (now 33.2%) and praised recent investments by firms like Shatterprufe and Ebor Automotive in the Eastern Cape as bright spots.
Regional Solutions and Challenges
Mashatile urged stronger collaboration under the African Continental Free Trade Area (AfCFTA) to boost intra-African trade and jobs. Meanwhile, Eastern Cape Premier Oscar Mabuyane highlighted sector transformation, celebrating women leaders like VW Africa’s Martina Biene and Toyota’s Jonia Mkonto.
However, Mabuyane acknowledged infrastructure hurdles, noting ongoing efforts to fix Transnet’s logistics and Eskom’s power supply—which saw 96% uptime in 2024/25 versus 9.9% the prior year. Key projects include:
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A R2.5 billion energy security plan (2025–2030) for industries and households.
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Expansion of East London’s port to handle larger cargo ships.
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The Ukuvuselela rail corridor, set for 2028, to move 150,000 vehicles annually from Gauteng to the Eastern Cape.
As negotiations with the US continue, the government faces pressure to safeguard an industry vital to South Africa’s economy.
