Closure of any business spells disaster for Nelson Mandela Bay
With unemployment in the Eastern Cape nearing 40%, the closure of any business is more than just an economic setback — it is a community crisis.
On Thursday, Goodyear SA announced plans to shut down its plant in Kariega, with 907 jobs at risk.
VW Group Africa MD Martina Biene said every business closure spelt disaster for the manufacturing city.
She spoke at the Women Empowerment Network event hosted by the Nelson Mandela Bay Business Chamber at the Boardwalk on Friday.
'It is sad for everyone when a business has to close, even more so in the Bay,' Biene said.
'We still have an unemployment rate of 40%.
'Every business that closes in the Bay is a disaster.'
In its report on liquidations in SA, Stats SA revealed that the country had seen 109 business liquidations in April 2025 and 482 business closures since the beginning of the year.
Biene said this spoke to the early signs of deindustrialisation in SA.
She said VWGA purchased tyres from Goodyear, but the majority were imported to keep manufacturing costs down.
'We are looking at buying tyres from India.
'VW needs to keep manufacturing costs low.
'We all must look at local is lekker , but lekker sometimes comes at a higher price.'
Asked what conversations were being held at a national level to ensure the manufacturing business in SA remained sustainable, Biene said a review of the SA Automotive Masterplan 2035 had to happen sooner rather than later.
'On the automotive industry side, we will propose some short-term measures to probably take away the burden.
'Some of the assumptions of the automotive plan in SA and how the sector grows in SA, as well as how much the domestic market plan grows, have not been met.'
Out of the seven OEMs operating in SA, Mercedes-Benz SA in East London is the only one now exporting directly to the US
However, Biene said that due to the interconnected supply chain, any disruption threatened the broader industry.
'We have common suppliers; we share suppliers because the suppliers are not viable if they manufacture for one of us.
'As much as we compete in product in the market, specifically manufacturing, we're all in this together and we need each other and eagerly look forward to more coming in, such as Stellantis, to stabilise the local industry.
'What we're seeing in SA now is that the local automotive industry is on the verge of being replaced and becoming an import market.
'From a VW perspective, I know we're perceived as being expensive, and this is not because we make a lot of money in this country.
'Manufacturing costs a lot in SA.
'The domestic market is small.
'Last year, Suzuki in India produced two-million cars while all seven OEMs here in SA manufactured 600,000.
'Previously, we were competing with products from Europe 15 years ago, under European labour costs and European standards, but now we're competing with Indian and Chinese labour costs.
'The competitive landscape has changed, but we remain the same with our labour costs. Looking at Indian labour costs, then I'm not so sure if I'm competitive.
'If something were to go wrong with us, the Bay would be in deep trouble.'
Chamber CEO Denise van Huyssteen said while investors needed to come to SA, the government needed to retain those already here.
The Herald
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Mail & Guardian
37 minutes ago
- Mail & Guardian
MBDA appoints seasoned town planning professional Zinhle Thwala-Zulu to spearhead catalytic programmes, urban revitalisation
Zinhle Thwala-Zulu. A city's transformation takes vision, leadership, skills and the requisite experience to progress. It is for this reason that the Mandela Bay Development Agency, an entity of the Nelson Mandela Bay Municipality, is pleased to announce the appointment of Zinhle Thwala-Zulu to the key position of Executive Manager: Operations. The role oversees all MBDA project planning, preparation, implementation and total precinct management, also referred to as urban area management. Thwala-Zulu stepped into the role held, until recently, by Debbie Hendricks, who served in this key position from 2019. Thwala-Zulu is now at the helm of the portfolio that drives the long-term planning and implementation of catalytic projects within Nelson Mandela Bay. 'Zinhle is taking on a critical role within the agency,' says MBDA CEO, Anele Qaba. 'She will lead the responsibility of aligning urban renewal projects with the agency's strategic objectives and ensure that every initiative contributes to the city's broader development goals within the MBDA's mandate.' Thwala-Zulu has held several senior public and private sector roles over the course of her career, including serving as General Manager: Planning & Sustainable Development at the Mtubatuba Municipality in KwaZulu-Natal, and as Senior Town Planner within the Western Cape's Knysna Municipality. She has led major urban projects and overseen the implementation of policy, land use applications and infrastructure planning. She holds a BTech in Town & Regional Planning, a Post-graduate Diploma in Local Economic Development, and is currently working towards a Master's degree in Town and Regional Planning at the University of Pretoria. Qaba is confident in the new appointment: 'I am excited with Zinhle's depth and breadth of experience to provide leadership in driving the MBDA's mission, to contribute to the inclusive and equitable development of Nelson Mandela Bay as a world-class city to live in, and a destination of choice. The MBDA's core mandate is to achieve social, spatial and economic transformation in Nelson Mandela Bay.' 'She brings to the position her expertise in municipal governance, infrastructure development and spatial planning, and is very well-placed to drive long-term impact and bring a fresh momentum to both current and future initiatives of the MBDA.' As Executive Manager: Operations, Thwala-Zulu will work closely with all stakeholders and partners to build and promote inclusive economic growth in Nelson Mandela Bay. 'I am excited to have the opportunity to guide and shape the MBDA's transformative initiatives,' she says. 'I look forward to supporting and leading initiatives that bring long-term positive results and make a meaningful impact in Nelson Mandela Bay. We have all the plans, now we need to deliver.'


The South African
an hour ago
- The South African
Elon Musk: I went 'too far' with Donald Trump posts
Once viewed as close friends and confidantes, the 'bromance' between Elon Musk and Donald Trump recently disintegrated in the midst of a public fallout and war of words on social media. Musk, who was granted special US government employee status to lead the Department of Government Efficiency, recently saw his role at the White House come to an abrupt end. As part of his 'special' role at the helm of DOGE, he oversaw major cuts to the federal workforce as Trump administration's sought to reduce federal spending. However, the relationship between the South Africa-born tech billionaire and US leader fell apart after Musk raised concerns about his sweeping tax and spending cuts package. As Musk went on the offensive, he urged Americans to call their representatives in Washington to 'kill the bill', alleging it would 'cause a recession in the second half of the year'. In another particularly evocative claim, he also alleged – without evidence – that Trump appears in unreleased government files linked to the late sex offender Jeffrey Epstein. In response Trump said Musk had 'lost his mind' and threatened to cancel his government contracts which have an estimated value of $38bn (R674,965bn), while the US leader told NBC in an interview: 'I think it's a very bad thing, because he's very disrespectful. You could not disrespect the office of the president.' Musk appeared to have deleted many of his posts over the weekend, and on Wednesday he then commented: 'I regret some of my posts about President Donald Trump last week. They went too far.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 0211. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.

The Herald
an hour ago
- The Herald
Africa Energy sees first output from SA's largest gas field by 2033
Canada-listed Africa Energy Corp is aiming to start production from SA's largest gas discovery by 2033, its CEO said on Tuesday, as it forges ahead with a project former operator TotalEnergies walked away from. The company is awaiting regulatory approval for a reworked environmental authorisation to survey Block 11B/12B off the southern coast. Using domestic gas is a key part of SA's strategy to diversify away from coal-fired power generation, with a flurry of new projects being pursued, including the first liquefied natural gas (LNG) import terminal along the east coast. "Our 11B/12B indigenous gas should be very competitive versus imported LNG," Robert Nicolella said from the Africa Energy offices in Cape Town. Nicolella said the company was studying ways to market the gas, though its preference is to supply a gas-to-power plant. SA is targeting 6,000 megawatts of new gas power projects. The CEO said Africa Energy is in talks with former national oil company PetroSA to use some of its infrastructure to land gas from the Brulpadda and Luiperd fields at Mossel Bay.