Government urged to act fast to secure Eastern Cape’s manufacturing future
Eastern Cape manufacturers have warned of power, logistics and policy risks, urging government intervention to protect jobs and investment.
SA Government is being urged to move swiftly to safeguard the Eastern Cape’s manufacturing sector, following concerns raised during a recent parliamentary oversight visit.
The Portfolio Committee on Trade, Industry and Competition visited key industrial sites in East London, including the Industrial Development Zone (IDZ) and the Mercedes-Benz South Africa plant.
Eastern Cape industry shows progress, but…
The Committee welcomed progress at the East London IDZ, particularly its Science and Technology Park. The facility supports innovation, small businesses, and skills development in sectors like renewable energy and the digital economy.
It also noted efforts to create opportunities for youth through training and entrepreneurship initiatives.
The Eastern Cape remains a key hub for South Africa’s automotive industry, with companies contributing to job creation, localisation, and community development.
Industry flags infrastructure and policy concerns
Despite these gains, stakeholders raised several challenges affecting long-term sustainability. These include unreliable electricity and water supply, as well as inefficiencies in transport and logistics systems.
Concerns were also raised about trade conditions and the need for stable incentives under the Automotive Production and Development Programme.
Last year The South African reported on how East London’s economy could face collapse if Mercedes-Benz South Africa (MBSA) is unable to withstand newly imposed US import tariffs.
“Industry raised concerns regarding policy reform to secure favourable tariffs with the United States,” the Committee noted.
“These factors would assist the industry to remain sustainable and continue to benefit the broader community.”
Industry players also stressed the need for urgent clarity on electric vehicle policy. Without it, they warned, manufacturers may delay or abandon investment in new technologies.
“The Committee will engage relevant stakeholders to address some of the key challenges,” said chairperson Mzwandile Masina.
The Eastern Cape visit forms part of broader efforts to strengthen manufacturing and expand industrial growth beyond major economic centres.
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