Latest news with #Naamsa
Zawya
21-07-2025
- Automotive
- Zawya
The future of fuel retail in South Africa: NEVs and solar panels
Even though new energy vehicles (NEVs) only make up less than 3% of South Africa's car market, local fuel station operators can still capitalise on the world's drive to embrace cleaner sources of fuel and energy. Rapid international developments, regulatory pressure, and consumer demand for greener mobility are set to reshape the fuel retail landscape. Image credit: Kindel Media on Pexels Rapid international developments, regulatory pressure, and consumer demand for greener mobility are reshaping the fuel retail landscape. The global state of NEVs The global NEV space is evolving rapidly: The European Union is working to phase out combustion engines by 2035 and is shifting focus to autonomous NEVs. China remains dominant, controlling most of the global NEV supply chain and having built battery capacity exceeding global demand by 500%. But according to the Automotive Business Council (Naamsa), South Africa is lagging for several reasons: Without access to Euro-5 and Euro-6 compliant fuels, South Africa cannot authorise or legally sell many modern vehicles. Currently, 38% of petrol and 67% of diesel are imported, but the Department of Mineral Resources and Energy has committed to making Cleaner Fuel 2 available by 1 July 2027, with indications it may arrive slightly earlier. The South African NEV market is small but growing, dominated by traditional hybrids like the Toyota Corolla Cross and Mercedes-Benz C-Class. Full battery electric vehicle (BEV) sales remain limited due to affordability, which is the biggest barrier to growth in this market: most BEVs are priced over R900,000, yet 74% of new car sales in South Africa are under R500,000. How fuel stations can benefit More affordable options are coming, with one original equipment manufacturer scheduled to launch a sub-R400,000 battery electric vehicle (BEV) this year. However, even affordable BEVs face practical challenges. Many consumers – particularly in the lower end of the market – lack solar, inverters, or batteries to charge vehicles at home. In addition, range anxiety persists, even though most BEVs offer over 200km per charge, and concerns about resale value and long-term performance deter buyers. Another issue for South African NEV sales is that existing public charging infrastructure is limited, poorly maintained, and inconveniently located: A Joburg to Cape Town EV convoy last year exposed major gaps, with vehicles stranded due to faulty charging stations. To address these challenges, Naamsa is engaging with the private sector to build a national charging network of 120 sites, providing accessible, reliable charging along key routes throughout the country. The network will leverage existing fuel stations instead of building new sites, ensuring that drivers can find a charging site within easy travelling distance, which will be public and free to access, without hidden costs. These strategic partnerships with fuel stations are preferable because of their proximity to main national routes and their existing vehicle-refuelling and alternate revenue stream infrastructures. To reduce the cost of the NEV charging infrastructure build and increase the speed of installation, these sites will initially operate largely through the national electricity grid, supported by renewable energy. Fuel stations are, in fact, ideally suited for solar PV installations because they have sizable areas of roof space over their buildings and forecourts, which are generally located in full sun. So, as increased income streams generated by the new infrastructure boost profits, fuel station owners can increase the renewable energy component of their sites to decrease their reliance on the national grid and thus boost profitability further. Fuel stations to evolve EV charging facilities certainly offer great potential for fuel retailers. It's a natural progression for them as it uses their experience and already-expanding forecourt product offerings while providing the highest potential margin. A recent study on the future of fuel stations in South Africa by commercial real estate company Cushman & Wakefield | Broll, indicates that fuel stations will evolve into 'mobility' stations within the next 5 to 15 years, offering a wider range of energy sources (electricity, natural gas, petrol, diesel, biofuels, and green hydrogen). As Fuel Connect points out, fuel forecourts offering much more than fuel is nothing new – as far back as the 1960s, fuel stations have incorporated restaurants, convenience stores, car workshops, tyre fitment centres, and even hotels, and fuel stations have always been an important midway destination on long journeys for family holidays. But because recharging an NEV takes significantly more time than filling up the fuel tank of a vehicle with an internal combustion engine, extended services such as pharmacies, laundry services, gyms, and co-working spaces will become more common at these sites. Operators will then become less reliant on income from fuel, as it will account for just 20% of the forecourt's revenue, compared with the 90% it has contributed historically. A further consideration is that, going forward, successful retailers won't just operate a single site, but instead own between five and 10. But managing multiple sites brings complexity – more employees, more systems, more human error. The only real solution? Leveraging smart technology, which prevents fraud, boosts efficiency, and further increases profitability. The future of fuel retailing lies beyond the fuel pump. As NEV adoption grows and cleaner fuels become standard, traditional forecourts will evolve. Embracing the opportunities this transition promises, together with smart technology and renewable energy, fuel station operators can future-proof their businesses and thrive in the rapidly changing mobility environment. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
IOL News
21-07-2025
- Business
- IOL News
Why Trump's 30% blow to South Africa is a wake-up call for a new economic order
On August 1, 2025, South African exporters will wake up to a 30% tariff on all goods entering the United States, a decision announced by the administration of President Donald Trump. Image: File On August 1, 2025, South African exporters will wake up to a 30% tariff on all goods entering the United States, a decision announced by the administration of President Donald Trump. This is not a sector-specific sanction, nor the outcome of any formal trade dispute. It is a sweeping penalty imposed on all products, citing trade imbalances and regulatory barriers imposed by South Africa. But this is not the end of trade. It is the beginning of South Africa's trade adolescence, the moment we decide to grow up or continue being disciplined by our 'partners.' The justification provided by the US administration rests on the claim that South Africa runs a trade surplus with the United States. In truth, South Africa exported around R170 billion worth of goods to the US in 2023 (Stats SA, 2024), largely in automotive components, citrus and minerals, while importing just over R100 billion in return. The surplus exists but it is relatively small in the context of overall bilateral trade. Trade imbalances are also not inherently unfair; the US itself enjoys surpluses with many countries. What this tariff reveals is not a fiscal grievance but a display of geopolitical leverage, an assertion of economic power with limited regard for multilateral process. The tariff appears partly aimed at appeasing domestic political interests ahead of the 2026 midterm elections, particularly in states where trade unions are concerned about foreign competition. However, the consequences for South Africa's economy will be profound and immediate. South Africa is already under pressure to reindustrialise and this penalty could not come at a worse time. The automotive industry alone accounts for over 4% of GDP and more than 110 000 jobs (Naamsa and Department of Trade, Industry and Competition, 2024). With the US as a key destination for vehicle parts and assembled models, this tariff will deal a serious blow to sectoral stability. Reports indicate that companies relocating production to the US may receive expedited regulatory approvals. In effect, this risks incentivising capital flight and weakening local value chains. This policy shift is taking place while South Africa holds the presidency of the G20 (G20 Secretariat, 2025). That irony is difficult to ignore. We are presiding over a global forum committed to equitable development while being subjected to unilateral economic pressure by one of its most powerful members. This is more than a diplomatic discomfort; it is a direct challenge to the credibility of multilateralism. If the G20 cannot protect developing economies from arbitrary market exclusion, it must ask itself what kind of influence it truly holds. While this move falls outside the scope of Agoa, it nonetheless underscores how preferential trade access can shift at the stroke of a pen. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Past threats to South Africa's participation in Agoa, such as the poultry trade dispute of 2015 (USTR, 2016), highlight how even codified benefits remain vulnerable to political shifts. Critics of South Africa's trade policy may point to the use of technical regulations and local content rules. However, these are allowed under World Trade Organisation (WTO) guidelines, as outlined in the Technical Barriers to Trade Agreement (WTO, 2020). Developing countries are within their rights to protect and promote industrial growth through policy instruments that stimulate domestic value addition. The United States also protects its own industries through farm subsidies, defence procurement and steel tariffs. To frame South Africa's approach as uniquely restrictive is not only unfair; it reflects a double standard embedded in the global trade architecture. This situation reflects a deeper structural issue in South Africa's trade exposure. Our economy remains disproportionately dependent on the EU, the US and China. Even beyond the US, our exposure to external shocks is growing from the EU's carbon border taxes to shifting Chinese demand. Diversification must be structural, not just diplomatic. There is also a domestic reckoning to be had. South Africa's industrial policy remains constrained by loadshedding, underinvestment in ports and rail and persistent skills mismatches. If we are to reposition ourselves globally, these internal constraints must be addressed with equal urgency. A resilient economy cannot rely solely on favourable trade preferences beyond its control. It must be built on a foundation of functional infrastructure, competitive inputs and policy certainty. South Africa faces a choice. It can wait out the Trump presidency in the hope that future leadership will reverse course or it can act decisively now. This is not a call for isolationism. South Africa should not abandon global trade nor retaliate blindly. However, we must negotiate from a position of design rather than deference. We must ensure that this is the last time our national strategy is disrupted by external political cycles. Our trade strategy must pivot. Already, trade with BRICS+ partners has rivalled that of individual Western blocs in recent quarters, accounting for more than 22% of South Africa's exports in 2024 (SARB, Q4 2024). This is a foundation we can build upon. The African Continental Free Trade Area (AfCFTA) remains our continent's most ambitious economic project. While its infrastructure is still maturing, its potential cannot be deferred any longer. Trade corridors, payment systems and regulatory alignment must be fast-tracked in practice, not just policy. The World Bank estimates AfCFTA could lift 30 million people out of poverty by 2035 (World Bank, 2020). Parliament and the economic cluster must now take this seriously not as a trade spat but as a strategic inflection point for the country's long-term development path. The legality of this tariff under WTO rules remains debatable, especially given its blanket nature and lack of arbitration. However, legality aside, the message it sends is unmistakable. The global playing field remains unequal and South Africa must protect itself accordingly. This is not an argument for withdrawal. It is an argument for resilience. We cannot afford to build a 21st-century economy on the hope that global goodwill will prevail. We must design for volatility, prepare for shocks and root our trade agenda in real production, regional depth and economic clarity. US President Donald Trump may eventually give way to a different leader but the conditions that made this tariff possible are not tied to any single administration. The unpredictability of external markets, the asymmetry of trade power and the fragility of our supply chains are structural issues. They will not be resolved with the next election. The tariffs may be American but the decision before us is South African. Do we keep asking permission to grow or do we take the blows and build something of our own? Nomvula Zeldah Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She holds a Diploma in Business Management (Accounting) from Brunel University, UK, and is an MBA candidate at Henley Business School, South Africa. Image: Supplied Nomvula Zeldah Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She holds a Diploma in Business Management (Accounting) from Brunel University, UK, and is an MBA candidate at Henley Business School, South Africa. *** The views expressed here do not necessarily represent those of Independent Media or IOL. BUSINESS REPORT
The Herald
21-07-2025
- Automotive
- The Herald
Kariega's ‘Home of Polo' accelerates into top gear
It's been a year to remember for Volkswagen Group Africa (VWGA), since it became the sole exporter of the Polo within the group globally, with 12 months that were marked by milestones for one of Mzansi's favourite vehicles. While the Kariega plant has been producing the Polo since 1996 and the Polo Vivo since 2010, it has only been the self-proclaimed Home of Polo since July 1 2024. The Polo is exported to 38 markets around the world and accounts for 88% of exported vehicles through the Port of Port Elizabeth, with 119,336 Polos having been exported from Kariega to Europe and the Asia-Pacific region in the last year. The Polo was SA's most exported vehicle in 2024 with the majority of the units shipped to Germany, France and the UK. VWGA production director Ulrich Schwabe said the Polo also performed strongly in the local market in 2024, selling 12,253 units and being named the top locally manufactured vehicle of the year at the Naamsa Accelerator Awards in October 2024. That same month was also the busiest production period for the plant, with a record-breaking 13,930 Polos built. 'The Polo is unquestionably an icon, and we are proud to call Plant Kariega its home,' Schwabe said. 'Our first year as the sole exporter of the Polo was a strong one, and we plan to build on the foundation of this success continuously and consistently, with the Polo, Vivo and our upcoming third model, the Tengo.' The plant celebrated a record production volume for 2024 with a total of 167,084 vehicles built in Kariega, of which 131,485 units were Polos for export, and 35,599 vehicles were Polos and Polo Vivos for the local market. Volkswagen also recently celebrated five decades of the Polo hatchback, with the launch of the new Polo Edition 50. However, the Edition 50 will only be available in European and UK markets. The Herald
Zawya
16-07-2025
- Automotive
- Zawya
South Africa car exports to US plunge as Trump tariffs bite
South African car exports to the United States dropped sharply in the first quarter of 2025, and tumbled more than 80% in April and May after import tariffs imposed by US President Donald Trump hit automakers' sales, industry association Naamsa said. Vehicles awaiting export are scanned at the dock of the car terminal at the port of Durban, South Africa, on 10 April 2025. Reuters /Rogan Ward The United States is South Africa's second-largest trading partner and key destination for vehicles manufactured in the country, which have long benefited from duty-free access under the US African Growth and Opportunity Act (Agoa). Auto exports to the US sank 73% in the first quarter compared to the same period last year, followed by declines of 80% in April and 85% in May, Naamsa said. The industry body said the sharp decline would be difficult to recover from in the short term. "This is not just a trade issue - it's a socio-economic crisis in the making," Naamsa CEO Mikel Mabasa said. Trump has this month escalated the global trade offensive he launched in April, announcing tariffs on more than a dozen countries, including South Africa, which faces a 30% rate from 1 August. This is separate from the 25% duty imposed on cars in April, which has since May also applied to automotive parts. Before the July tariff announcement from Trump, South Africa had proposed a trade package including a duty-free quota of 40,000 vehicles per year to be exported from South Africa and duty-free access for automotive components sourced locally for US production. In 2024, South Africa's automotive sector accounted for 64% of all Agoa trade with the US, generating R28.6bn ($1.60bn) in export revenue, Naamsa said. Mabasa said the tariffs threaten thousands of jobs and risk economic devastation in communities reliant on the sector, such as East London, a coastal city where the auto industry is central to the economy. "If we cannot retain export markets like the US, we risk turning vibrant industrial hubs into ghost towns," Mabasa said, warning of ripple effects across the automotive supply chain, from component manufacturers to logistics providers. Export diversification is critical but cannot happen overnight, Mabasa added, noting that global competitors are already redirecting their exports into markets traditionally served by South Africa. This mounting pressure will force South Africa-based automakers exporting to the US, including Mercedes-Benz, to absorb rising costs, scale back production, and reconsider future investments, Mabasa said.
Arabian Post
15-07-2025
- Automotive
- Arabian Post
Exports Collapse: South African Cars Shut Out of U.S. Market
South African vehicle shipments to the United States have plunged after U. S. import tariffs were escalated, posing a serious threat to jobs and industrial hubs across the country. Export volumes dropped by 73 per cent in the first quarter of 2025 and declined a further 80 per cent in April and 85 per cent in May, according to figures from the National Association of Automobile Manufacturers of South Africa. The tariffs, introduced under U. S. trade policy changes that began on 2 April and expanded in April and May, include a 25 per cent levy on cars, widened to cover auto components, and a looming 30 per cent rate on all South African vehicle imports from 1 August. These measures have effectively stripped away benefits previously enjoyed under the African Growth and Opportunity Act, under which U. S.-bound South African vehicles had duty-free access. Naamsa CEO Mikel Mabasa warned that the crash in exports is 'not just a trade issue – it's a socio‑economic crisis in the making', highlighting the potential for factory shutdowns and mass unemployment, particularly in assembly centres such as East London, where the industry forms the backbone of local economies. South Africa's auto sector accounted for 64 per cent of AGOA trade with the U. S. in 2024, generating 28.6 billion rand in revenue. ADVERTISEMENT The export decline has already begun, with only 1,703 vehicles and light commercial units shipped in the first quarter of 2025, compared to 6,840 in the same period of 2024—a drop of more than 75 per cent, according to BusinessLIVE. The situation deteriorated further in subsequent months, pushing total declines beyond 87 per cent in certain reports. Industry leaders warn that automakers such as Mercedes‑Benz South Africa may be forced to scale back operations, absorb rising production costs or even delay future investments. The wider supply chain feels the strain too; component manufacturers, logistics firms and related service providers are all facing potential closures and layoffs. Efforts to negotiate relief have so far foundered. A diplomatic proposal submitted in May envisaged a mutually beneficial trade package—including a duty‑free quota of 40,000 South African vehicles per year and duty‑free access for locally produced components—but it failed to prevent the August tariff imposition. Trade and Industry Minister Parks Tau confirmed in parliamentary responses that ongoing negotiations include broader requests, such as increased U. S. investment in South African liquefied natural gas in exchange for auto exemptions. South African President Cyril Ramaphosa has criticised the U. S. tariff rating as misguided, noting that half of U. S. exports to South Africa are untaxed and the remainder attract an average tariff of only 7.6 per cent. He remains optimistic that diplomacy can mitigate losses—stressing that the August 1 date could still bring modifications, contingent on negotiations. The broader economic impact is already being projected. South Africa's GDP growth estimate for 2025 was reduced by 0.3 percentage points to 1.2 per cent in May, a downgrade partly attributed to the fallout from these tariffs. The South African Reserve Bank has responded with a repo rate cut to 7.25 per cent, seeking to support domestic activity. With the U. S. set to enforce its tariffs under Section 232, targeting vehicles, auto parts, steel and aluminium, the South African rand has remained volatile—trading near 18 to the dollar—amid investor uncertainty. Meanwhile, South Africa is fast-tracking plans to diversify export partnerships, targeting markets in Asia, Europe, the Middle East and within Africa. Naamsa has called for government support to cushion the economic blow, including incentives for exporters and support schemes for affected workers. Industry analysts argue that while diversification holds promise, it cannot be implemented swiftly enough to offset the immediate losses from the U. S. market collapse.
