Trade, Industry and Competition Minister Parks Tau has called for stronger collaboration to implement government’s national industrial strategy aimed at diversifying, decarbonising and digitalising the economy, while positioning the Eastern Cape to attract investment and strengthen its automotive sector.
Tau was speaking at the Export Symposium and Exhibition in KuGompo City in the Eastern Cape, where he highlighted the need for the province to respond proactively to changing global trade requirements and safeguard its position in international markets.
He said the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) and other global trade measures were creating an urgent need for South Africa to adapt its industrial and export strategies.
Tau stressed that decisions in the automotive sector must be taken well in advance, given the long lead times involved in production and investment decisions.
“There is a need to transform our automotive sector’s current difficulties into opportunity, by developing an end-of-life vehicle policy and positioning the province as a leader in the renewable energy space,” he said.
“Our goal should be to drive production in the Eastern Cape and position it as a leading province in decarbonisation by making the industry competitive in the current environment.”
Tau said a coordinated response was also needed to address challenges at local government level, including systematic and structural issues that could undermine investment and industrial development.
He said resolving these challenges would help accelerate economic diversification and the implementation of decarbonisation measures needed to sustain critical industries such as automotive manufacturing.
“It is also important to understand future production decisions in the automotive sector, including energy production and logistics. The EU measures have a significant impact on local government and industries, and that is why I’m emphasising the need for support for our national strategy to address these challenges,” Tau said.
He stressed that the Eastern Cape needed to move quickly to adapt to global environmental and trade requirements if it was to remain competitive and prevent production and market share from shifting to other countries.
“Our response is to make decarbonisation part of industrial policy, and not separate from it. Our new Industrial Development Strategy places decarbonisation, diversification and digitalisation at its centre,” Tau said.
He said government was working with the Industrial Development Corporation and international partners on a steel decarbonisation roadmap, which includes hydrogen-based production pilots, renewable energy integration and a just transition for workers.
Tau also outlined measures to strengthen South Africa’s export capacity, including efforts to expand the mandate of the Export Credit Insurance Corporation of South Africa to serve emerging exporters directly.
The department is also reviewing the National Exporter Development Programme to help develop the next generation of South African exporters.
Tau said these initiatives would be implemented in partnership with the Eastern Cape Provincial Government, the Eastern Cape Development Corporation, Special Economic Zones and industry partners.
The partnerships are intended to convert investment and production opportunities into increased exports, industrial growth and job creation in the province. – SAnews.gov.za
