Kugompo city: Trade, Industry and Competition Minister Parks Tau has called for stronger collaboration to implement the 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 addressed these issues at the Export Symposium and Exhibition in KuGompo City, highlighting the province's need to respond proactively to evolving global trade requirements and maintain its foothold in international markets.
According to South African Government News Agency, Tau emphasized the urgency for South Africa to adapt its industrial and export strategies in light of the European Union's Carbon Border Adjustment Mechanism and other global trade measures. He noted that decisions in the automotive sector must be made well in advance due to the long lead times associated with production and investment decisions.
Tau suggested transforming current challenges in the automotive sector into opportunities by developing an end-of-life vehicle policy and establishing the province as a leader in renewable energy. He stressed that the goal should be to drive production in the Eastern Cape and position it as a leading province in decarbonisation to enhance competitiveness.
He also highlighted the necessity of a coordinated response to address challenges at the local government level, including systematic and structural issues that could hinder investment and industrial development. Resolving these challenges, he said, would accelerate economic diversification and the implementation of decarbonisation measures essential for sustaining critical industries like automotive manufacturing.
Tau pointed out the importance of understanding future production decisions in the automotive sector, particularly regarding energy production and logistics, given the significant impact of EU measures on local government and industries. He reiterated the need for support for the national strategy to effectively tackle these challenges.
The minister stressed the urgency for the Eastern Cape to quickly adapt to global environmental and trade requirements to remain competitive and prevent production and market share from shifting to other countries. He advocated for integrating decarbonisation into industrial policy, noting that the new Industrial Development Strategy centers on decarbonisation, diversification, and digitalisation.
Tau mentioned that the government is collaborating 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. He also outlined measures to strengthen South Africa's export capacity, including expanding the mandate of the Export Credit Insurance Corporation of South Africa to directly serve emerging exporters.
The department is reviewing the National Exporter Development Programme to develop the next generation of South African exporters. Tau stated that these initiatives would be implemented in partnership with the Eastern Cape Provincial Government, the Eastern Cape Development Corporation, Special Economic Zones, and industry partners. These partnerships aim to convert investment and production opportunities into increased exports, industrial growth, and job creation in the province.
