South African President says new investment and Tengo production strengthen country’s automotive future….reports Africa Daily News Desk
South African President Cyril Ramaphosa has welcomed Volkswagen’s R4 billion investment linked to the introduction of a new model at its Kariega plant, describing it as a major vote of confidence in the country’s manufacturing capability and investment potential.
Speaking at Volkswagen Group Africa’s 75th anniversary gala dinner in Kariega, Eastern Cape, Ramaphosa said the new Volkswagen Tengo would become the third model produced at the facility alongside the Polo and Polo Vivo.
The investment comes as South Africa seeks to strengthen its position as a global automotive manufacturing hub amid rapid changes in the industry, including the transition towards electric and other new-energy vehicles.
“Volkswagen’s presence in South Africa demonstrates what can be achieved through long-term investment, industrial capability and partnership,” Ramaphosa said, adding that the government was encouraged by the company’s continued commitment to the country.
Volkswagen’s Kariega plant, formerly located in Uitenhage, has played a central role in South Africa’s automotive industry since the first Volkswagen Beetle rolled off its production line on August 31, 1951.
The facility is the oldest Volkswagen manufacturing plant outside Europe and is currently the only plant in the world producing the Volkswagen Polo for export to Europe and Asia-Pacific markets.
Nearly five million vehicles, including the Beetle, Kombi, Golf, Jetta, Citi Golf, Polo and Polo Vivo, have been manufactured at the plant over the past 75 years.
Ramaphosa said more than 156,000 vehicles were produced at Kariega last year, with almost 120,000 exported to international markets.
He highlighted the wider importance of South Africa’s automotive sector, which supports more than 115,000 direct manufacturing jobs and over half a million jobs across the broader value chain. The industry contributes just over five per cent to the country’s gross domestic product and exports to 155 destinations.
The President also welcomed Volkswagen’s social investment programmes, including more than R800 million invested in communities around the Kariega plant.
He pointed to the establishment of the LEAP 9 Maths and Science School in KwaNobuhle and the company’s support for education and youth employment initiatives.
Volkswagen also invests R40 million annually in the Youth Employment Service programme, which provides unemployed young people with their first work experience, Ramaphosa said.
Looking ahead, the President stressed the need for South Africa to adapt to the global transition towards battery-electric vehicles, hybrid technology and other new-energy transport systems.
He said the country had significant advantages, including an established automotive manufacturing base, skilled workers and reserves of critical minerals needed for future technologies.
However, Ramaphosa said South Africa must strengthen its competitiveness and create a stable and predictable policy environment to attract future investment.
The government is reviewing the South African Automotive Masterplan and broader automotive policy framework as part of efforts to respond to changing global conditions and sustain the sector’s growth.
“We must not only assemble the vehicles of the future,” Ramaphosa said. “We must increasingly manufacture the components, process the materials and develop the skills and technologies that go into them.”
He also highlighted opportunities presented by the African Continental Free Trade Area, saying deeper regional integration could help develop larger markets and automotive value chains across the continent.
As Volkswagen marked 75 years in South Africa, Ramaphosa said the company’s history reflected a long-standing partnership built on investment, skills development and employment.
“We thank Volkswagen for believing in South Africa for 75 years,” he said, expressing hope that the partnership would continue to grow as the country seeks to build the automotive industry of the future.
