South Africa: Committee on Trade Says Urgent Action Is Needed to Secure Manufacturing Future in Eastern Cape

The Portfolio Committee on Trade, Industry and Competition concluded its oversight visit to the Eastern Cape province’s industrial zones, that contribute to industrial growth and job creation.

On Thursday, 19 and Friday, 20 March 2026, the committee visited the East London Industrial Development Zone (IDZ), as well as the Mercedes Benz South Africa plant in East London.

The visit forms part of Parliament’s broader focus on the strengthening of South Africa’s manufacturing sector to ensure that industrial development spreads beyond major economic centres.

The committee has welcomed progress made at the IDZ, particularly the work of its Science and Technology Park in fostering innovation, incubating entrepreneurs, particularly small, medium, and micro enterprises (SMMEs) and developing much-needed skills in the Eastern Cape such as those required in the digital economy and renewable energy sector. The committee noted the IDZ’s efforts to create youth training, entrepreneurial and employment opportunities.

The Eastern Cape remains an important hub for South Africa’s automotive industry. As part of its two-day visit in East London, the committee engaged stakeholders in the automotive industry, namely Mercedes Benz South Africa, Ebor and Voestalpine. Collectively, the industry has made a significant contribution to component localisation, skills development, job creation, and community development.

Industry raised concerns regarding the need for reliable and affordable electricity and water provision, efficiency and reliability of transport logistics, and policy reform to secure favourable tariffs with the United States and ensure stability in the incentives underpinning the Automotive Production and Development Programme. These factors would assist the industry to remain sustainable and continue to benefit the broader community.

Stakeholders also required urgent policy certainty on electric vehicles. Without clear direction, they warned that manufacturers may delay or forego critical investments in new technologies, putting local production, jobs and export markets at risk.

“The committee will engage relevant stakeholders to address some of the key challenges facing the automotive industry and other businesses in the Eastern Cape,” said the Chairperson of the committee, Mr Mzwandile Masina.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.