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Former public enterprises and trade and industry minister Alec Erwin says Nelson Mandela Bay should grab the opportunities presented by the new energy vehicle revolution.
Erwin was in the city at the invitation of the Nelson Mandela Bay Civil Society Coalition, an alliance of business, labour, and community structures dedicated to addressing poor governance and service delivery collapse.
Speaking at the Nelson Mandela Bay Business Chamber in Gqeberha, Erwin said he was happy to have been invited by the coalition to engage with them and share his experience.
“I think this was a fantastic initiative by the coalition, and I hope it goes forward.”
He said the auto industry was facing several threats.
“However, the more we understand these threats, and the opportunities presented, and the more stakeholders we engage with, the better.”
He said that while SA was establishing new auto manufacturing industry policies, it needed to keep an eye on imports.
“It is important to make sure new investors come in properly, in other words, with full-scale manufacturing.”
He said the global auto market was moving inexorably from the internal combustion engine to new energy vehicles.
“South Africa could be an important manufacturer over time of new energy vehicles, and with Nelson Mandela Bay and the Coega industrial development zone situated at the end of the supply line, you are well placed to be part of that.
“South Africa has got the minerals that can help us in this regard and now, instead of just exporting those minerals as we used to do, we’re now looking more at processing them.”
He said there were several low-hanging fruits that the Bay auto industry could focus on.
“You need to look at the stabilisation of services like the supply of water and electricity. You also need to focus on the establishment of new trade routes to Africa and Asia and improving your port logistics.”
He said making the right choices in trade and industry terms was part and parcel of delivering social benefits.
“Our government needs to build more clinics and schools, to maintain existing infrastructure, and create jobs in the process. That is what the successful countries do.”
Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen said Erwin’s message was clear.
“Nelson Mandela Bay is at risk of de-industrialisation due to unreliable services, including energy and water supply.
“Besides energy, logistics is the biggest cost incurred by the auto industry.
“However, as Erwin made clear, we all have a role to play in influencing the future direction taken by the auto industry, and can influence the changes that need to happen.”
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