this article from TimesLIVE reports on a speech given by the South African President, Cyril Ramaphosa, at a BMW event. Here’s a breakdown of the key points:
BMW’s Role and South Africa’s Future:
Integral Part of the Company: Ramaphosa emphasized that BMW’s associates are “very much a part of this company,” highlighting their importance.
Plug-in hybrid Investment: He praised BMW’s investment in plug-in hybrid technology,seeing it as crucial for South Africa’s transition to a low-carbon economy.
Global Manufacturing Hub: ramaphosa believes South Africa is well-positioned to be a key global manufacturing base for future mobility (battery electric vehicles, plug-in hybrids, and hydrogen mobility).
Government Support for Green Transition:
Policy Frameworks: The government is committed to supporting the green transition through clear policy frameworks.
Enabling Habitat: They aim to ensure a stable, predictable, and supportive regulatory and policy environment for investment, localization, and growth.
Specific Programs: Mentioned programs include the Automotive Production and Advancement Program, the electric Vehicle White Paper, and incentive programs.
South Africa’s Automotive Sector Strengths:
Economic Contribution: The automotive sector contributes about 4.9% to GDP.
Job Creation: It supports over 115,000 direct manufacturing jobs and over half a million jobs across the value chain.
Global exporter: South Africa is the 22nd largest vehicle exporter globally, with key destinations being the EU, US, and UK.
BMW’s Social Impact and Transformation Efforts:
Youth Empowerment: Ramaphosa commended BMW for its commitment to skills development and training for young people.
Specific Initiatives:
Partnership with UNICEF for coding and robotics training in schools.
BMW South Africa IT Hub in Tshwane employing over 2,000 professionals.
Training academy producing 300 apprentices annually and having trained over 2,000 artisans since 1978.
Partnership with the Youth Employment Service supporting over 3,500 youth placements.
Transformation Commitment: BMW’s commitment includes mentorship of young women, development of black industrialists, and investment in future managers through its Leadership Acceleration Programme.
Addressing International Trade and Domestic Value Creation:
Urgency for Diversification: New US tariffs highlight the need for South Africa to diversify its export base and invest in domestic value creation.
Critical Minerals hub: The country aims to become a hub for processing and beneficiation of its meaningful critical mineral reserves.
Targeted Incentives: The government is finalizing incentives for battery cell localization, EV component manufacturing, clean mobility research and design, and critical mineral beneficiation.
concluding Remarks:
“Beating Heart is South African”: Ramaphosa stated that while BMW’s roots are in Bavaria, its “beating heart is South African.”
* Integral Part of Growth Story: He views BMW as an integral part of South Africa’s growth story and welcomes their role in supporting inclusive growth and job creation.
