Chamber urges for action to retain jobs and to unlock the Bay’s economic potential.
- 7 hours ago
- 5 min read
The Nelson Mandela Bay Business Chamber has expressed concerns of a growing risk of de-industrialization unless urgent, coordinated action is taken to stabilize the operating environment for manufacturers and the surrounding supporting eco-system.
Addressing the Chamber’s media press conference, Chief Executive Officer Denise van Huyssteen said the current moment demands speed, collaboration, policy certainty and action, stressing that no single institution can resolve the challenges confronting the metro in isolation.
“The role of organized business is not to replace the state or attempt to control global forces, but to provide informed leadership, advocate for enabling conditions and mobilise partnerships that can unlock positive change and opportunity,” said Van Huyssteen. “Sustainable progress in Nelson Mandela Bay will depend on collective action, improved execution and a shared commitment to stabilising the operating environment and proactively taking steps to diversify the economy.”
Van Huyssteen cautioned that instability has in recent times become the defining feature of the economic operating environment, both locally and globally.
“The global manufacturing playing field has changed fundamentally with the world trade order having essentially been upended over the past year” she said. Moreover, among the original BRICS countries, SA is the only one not moving with urgency to open new export markets. India, China, and Brazil, are signing various free trade agreements with non-BRICs markets. For example with India reaching a trade agreement with Europe, this has resulted in SA now also having to compete with India in the European market.”
“China now accounts for more than half of global vehicle manufacturing capacity, supported by significant state subsidies and lower energy costs. South Africa, producing just 0.65% of global vehicle volumes, does not have the benefit of scale and is increasingly exposed.” Added to this Asian markets which have over-capacity and enjoy heavy government subsidization, are flooding their much lower priced vehicles into the SA market. This is evident in terms of the growing displacement of sales in the domestic market, which is becoming increasingly dominated by much more affordable imported offerings from Asian markets.
The Bay is disproportionately affected by these developments and especially with regards to de-industrialization versus the rest of the country, with our manufacturing sector directly accounting for 21% of the metro’s GDP and responsible for employing over 40% of the people working in the country’s automotive sector. Additionally the knock-on impact of the automotive industry on the surrounding eco-system is significant, with the metro’s direct and indirect economic activities largely centering around the industry.
The South African domestic market has not grown to the extent that was envisaged in the Automotive Master Plan, while localization levels have declined to between 30-40% versus the target of 60%. At the same time the fast moving developments in the global, national and local environment, has put local Completely Knocked Down (CKD) manufacturing with its low economies of scale at risk. This requires agility and responsiveness in responding and addressing the issues so as to retain investment and employment in the industry and through its surrounding eco-system.
From a policy perspective, it is urgent and vital to reverse the current position that incentivises Semi-knocked Down (SKD) assembly over CKD manufacturing. It must put localisation and local job creation at the forefront.
Absolute speed is required with regards to strengthening SA’s automotive policy so as to prevent further deindustrialization of the industry from taking place. She said that at a local level among the headwinds which affect businesses include high electricity costs, the lack of maintenance of electricity, water and sanitation infrastructure; vandalism of infrastructure; and safety and security issues.
Despite these risks, the Chamber highlighted tangible signs of progress that demonstrate the metro’s underlying potential if momentum is sustained. These include the alleviation of loadshedding taking, South Africa’s removal from the Financial Action Task Force grey list, a sovereign credit rating upgrade by Standard & Poor’s, efficiency improvements at ports, record citrus exports last year and recent private-sector investment in Nelson Mandela Bay.
“Volkswagen Group Africa’s multi-billion-rand investment into its Kariega manufacturing plant, Shatterprufe’s investment into upgrading its manufacturing facilities, VSL Manufacturing’s opening of their hi-tech press shop, and commercial and hospitality developments currently underway, show that confidence can be rebuilt,” said van Huyssteen. “The Bay of Opportunity is real, but its potential can only be truly unlocked if actions are taken to ensure that the environment is enabling.”
She described Nelson Mandela Bay as one of South Africa’s best kept secrets and having tremendous potential, citing its two ports, Coega Industrial Development Zone, renewable energy potential, innovation and engineering capability located within the manufacturing sector, strong automotive and agro-processing base, and natural assets which if leveraged - could reignite the tourism sector.
“The Bay is a great place to work, live and invest, supported by a lower cost of living and a business community that is actively committed to rolling up its sleeves and being part of the solution,” she said.
Van Huyssteen outlined the Chamber’s strategic priorities for 2026 which will include a focus on partnerships, advocacy and lobbying, proactively identifying opportunities to diversify manufacturing, delivery through its action arms, including its Trade and Investment Desk, Skills Development Desk, Entrepreneurship Desk and Projects Desk. These initiatives are designed to support investors, mitigate job losses, develop industry-aligned skills and strengthen local enterprises.
Building on the Bay of Opportunity platform, the Chamber is strengthening this initiative by establishing Made in the Bay as a strategic pillar focused on driving industrial pride, competitiveness and market visibility. Made in the Bay showcases and promotes the products, services, innovation and skills produced in Nelson Mandela Bay, bringing the Bay of Opportunity to life through the people, businesses and capabilities that underpin the metro’s economic base.
By amplifying locally produced excellence to national and international audiences, the initiative strengthens local value chains, reinforces the metro’s competitiveness, and positions Nelson Mandela Bay not only as an investment destination, but as a place where world-class products and solutions are conceived, manufactured and delivered to global markets.
“Adjacent to this we strongly believe that this is the most fixable metro in the country and will continue to accelerate the work of our 11 geographic clusters, strengthening risk management initiatives, and through our various task teams help to address water security and electricity reliability, improving safety and security, and applying pressure to remove development red tape that is blocking investment and jobs.”
“Unlocking opportunity in a disruptive environment requires leadership, collaboration and urgency,” Van Huyssteen concluded. “The Chamber will continue to act as a constructive, non-partisan voice for business, focused on protecting existing investment, attracting new capital and securing sustainable employment for the metro.”
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