Reimagining South Africa’s Manufacturing Future: From SKD to CKD for a Just Energy Transition

The Urgent Call Heard at #Naamsa AutoWeek

At this year’s #Naamsa AutoWeek, speaker after speaker echoed a shared concern — South Africa stands at a crossroads in its automotive manufacturing journey. The consensus was loud and clear: if we are serious about rebuilding our industrial base and creating meaningful jobs, we must move away from low-value Semi-Knocked Down (SKD) operations and reinvest in Complete Knocked Down (CKD) manufacturing.

CKD operations, unlike SKD, create far deeper local value chains. For every new manufacturing job established on the assembly line, four additional jobs are created in supporting sectors such as logistics, components, raw materials, and services. This multiplier effect is what South Africa urgently needs to drive sustainable industrialisation and meaningful skills development under the #JustEnergyTransition.

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Falling Behind While Others Surge Ahead

While the Department of Trade, Industry and Competition (DTIC) continues to deliberate, our continental peers are not waiting. Morocco, Egypt, and Algeria have aggressively attracted automotive investments, built world-class industrial zones, and positioned themselves as global EV and hybrid assembly hubs.

This widening gap underscores the need for South Africa to act decisively. As one speaker warned, “While we debate policy, our neighbours are eating our lunch.”

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The Call for Real Localisation

In a strong and unapologetic statement, #NUMSA General Secretary Irvin Jim reinforced what many in the industry already know — localisation must once again become central to our national narrative.

If investors from China, India, or elsewhere wish to participate in South Africa’s mobility future, they must commit to:

• Establishing fully-fledged factories,
• Employing South African workers,
• And using locally produced materials and components.

This is not protectionism — it is strategic patriotism. True localisation is about building capacity, strengthening skills, and creating a resilient value chain that sustains communities rather than merely assembling imported parts.

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Building Skills for the Future: #EVrgreenskills and #ProjectPowerUp

South Africa’s transition to electric and hybrid vehicle production will demand a new generation of skilled technicians, engineers, and innovators. Initiatives such as #EVrgreenskills and #ProjectPowerUp, supported by #SIFA and #AudaNepad, are already leading the way by designing and delivering workforce training programmes aligned with the evolving needs of the EV and NEV (New Energy Vehicle) industries.

These programmes not only support localisation efforts but also empower young South Africans to become active participants in the green mobility revolution — from assembly and maintenance to diagnostics and battery systems.

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The Road Ahead

South Africa cannot afford to outsource its industrial future. The next chapter in our automotive evolution must be defined by local production, industrial capacity, and inclusive skills development that bridges the gap between today’s workforce and tomorrow’s clean energy economy.

👉 Policymakers, investors, and OEMs must now ask themselves — not if localisation is necessary, but how fast they can act. The skills exist, the market is ready, and the momentum is building. What’s needed now is bold, coordinated action.

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In Summary

The call from #Naamsa AutoWeek is clear: South Africa’s manufacturing destiny lies in building, not assembling. The combination of policy certainty, skills development, and industrial commitment will determine whether we lead Africa’s green mobility future — or watch it pass us by.

Let’s make localisation not just a policy, but a national mission.

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Tags:
#Naamsa #NaamsaAutoweek #EVrgreenskills #NUMSA #JustEnergyTransition #SkillsDevelopment #ProjectPowerUp #SIFA #AudaNepad