EV focus for SA automotive supply chain to target Africa

A recently signed Memorandum of Understanding (MOU) identifies growth for innovation and technology in the South African automotive supply chain particularly in electric vehicles (EV).

The Automotive Industry Development Centre (AIDC) Eastern Cape has signed an MOU with the South African Bureau of Standards (SABS). In terms of the agreement, the organisations will collaborate and synergise resources with a vision to establish the Eastern Cape automotive manufacturing hub as a centre of excellence which will service all of Africa.

AIDC EC CEO Thabo Shenxane said the alignment of automotive manufacturing related agencies, OEMs and its supply chain towards the sector’s priorities was “critical to the ability of South Africa to compete globally in the future automotive manufacturing landscape.’’

“Automotive production is in the process of radical and accelerated change driven by technology and alternative energy. As South Africa’s automotive volumes are driven by export demand

predominantly, the country and the Eastern Cape, which is South Africa’s most prolific vehicle exporter, are highly vulnerable to changes in demand in these export markets – currently mostly Europe,’’ Shenxane said.

The MOU identifies several joint projects including a collaborative programme with other world-class Eastern Cape-based institutions to identify and implement projects within the EV value chain contributing to the transition of the automotive sector in South Africa, including standards.

“Commitments by countries, including South Africa, to zero carbon emissions means that within a very short time-period (within three to five years) South Africa’s traditional markets will demand EV vehicles only which means we need to be making significant investments in innovation and EV technology,“ said Shexane.

The AIDC EC believes that its work in synergising resources and strategies of South Africa’s automotive role-players is central to enabling this growth in innovation and technology. The MOU with SABS, which centres around EVs, is a case in point.

Jodi Scholtz, Lead Administrator at SABS added the bureau is excited about this partnership with AIDC EC “as it forms a critical component of our turnaround strategy to identify new areas of growth.”

Also envisioned is the enhancement of the SABS testing facility in East London to ensure continued support to the automotive industry and its establishment as a Centre of Excellence.

Scholtz believes the facility will enhance its testing capacity and capability to ensure alignment to the current and future requirements of the industry. “The outcomes of COP26 will also have a major impact on future standards from a sustainability perspective,” said Scholtz.

AIDC EC and SABS have identified a number of joint projects which include repurposing the available buildings at the SABS East London facility to serve as an automotive incubator, which is intended to complement current services and expand to future services in EVs and related technology sectors.

Africa Automotive News l 2022 33