The Minister of Trade, Industry and Competition, Mr Parks Tau called for support in implmenting government’s national strategy that will focus on diversification, decarbonisation, and digitalisation to connect the Eastern Cape and attract investment in the automotive sector. Tau was addressing delagates at the province’s Export Symposium and Exhibition in KuGompo City.
According to Tau, there is an urgent need to adapt to global trade measures such as the European Union’s (EU) Carbon Border Adjustment Mechanism, and also the necessity of making proactive decisions in the automotive sector, as production decisions are made years in advance. He says failure to adapt could lead to dire consequences for the industry.
“There is a need to transform our automotive sectors current difficulties into opportunity, by developing an end of life vehicle policy and positioning the province as a leader in the renewable energy space. 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,” he said.
Tau said a coordinated approach to address local government issues, some of which are systematic and structural in nature, will accelarate diversification and drive the implementation of decarbonisation measures in order to sustain the critical industries like the automotive sector that are essential for the economy.
“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.
Tau stressed the importance of the province in adapting to these global measures to remain competitive and avoid losing market share 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, and we are working with the Industrial Develipmt Corporation and international partners on a steel decarbonisation roadmap covering hydrogen-based production pilots, renewable energy integration and a just transition for workers,” added Tau.
Tau said the Department of Trade, Industry and Competition is strengthening the Export Credit Insurance Corporation of South Africa’s mandate to serve emerging exporters directly and reviewing the National Exporter Development Programme to help build the next generation of South African exporters. This will be done in partnership with the Eastern Cape Provincial Government, the ECDC, Special Economic Zones and industry partners to translate investment and production opportunities into increased exports and jobs.
The Minister of Trade, Industry and Competition, Mr Parks Tau addressing delegates at the Eastern Cape Export Symposium and Exhibition in KuGompo City.
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