READER LETTER | Policy uncertainty casts pall over motor industry

While political populists are busy telling whoever cares to listen about the so-called white monopoly capitalists, there is looming jobs bloodbath in the automobile industry. The industry is set to lose almost 60% of its European market. Continued uncertainty by the department of trade, industry and competition about SA’s policy direction on electric vehicles (EVs) is making it difficult for corporate vehicle manufactures to make investment decisions for SA.

With 60% of SA’s vehicles being produced for Europe and UK, these markets will only be allowing EVs on their roads from 2030. While SA is still to give policy certainty, investment decisions taken stand to exclude SA, benefiting our new competitors in Egypt and Morocco, with their proximity to these markets at their advantage.

Dysfunctional rail and port services, together with inconsistent energy supply, does not make SA an attractive investment destination. In turn they are making it difficult for local motor industries to convince their corporate principals to continue investing in SA. Investors need economic stability and policy certainty to make investment decisions. But these certainties look hard to get in SA with mafias in road, rail, construction, mines and coal, masquerading as business forums.

Prolonged policy lags will continue to exclude SA from EVs’ supply chain processes. Corporate automotive manufactures cannot wait for SA to give policy signals, but must make decisions regarding assembling and manufacturing of components, as well as sourcing of raw materials. By the time SA wakes up, there might be a new ruling party and/or new president by then, and some political commentators and/or populists may assume that the disinvestments are happening because the corporates (read white monopoly capitalists), don’t like policies of the new ruling party and/or the new president.

Phepisi Radipere
GaRamokadi-kadi, Limpopo