AIDC-EC CEO's Statement on the 2026 State of the Nation Address

Following the 2026 State of the Nation Address (SONA) by President Cyril Ramaphosa, The CEO of the AIDC-EC, Mr Thabo Shenxane, acknowledges key strategic priorities for investments and welcomes the following key interventions mentioned in the address:

Electric Vehicle (EV) Incentives: AIDC-EC welcomes the President's announcement of a 150% tax deduction for New Energy Vehicle (NEV) investments, effective March 2026. We hope this policy shall provide the fiscal certainty required to accelerate the transition of our local manufacturing base and catalyse battery production towards attracting new investments. We are concerned about the public utterances of VW in SA and we hope this is one lever to support the transition of green manufacturing in our province. As a provincial leader in this transition, we have led this green revolution by establishing EV infrastructure in our province and proven that our government is supporting future investments and we are willing to do the same to our local OEMs. A simplified administration of this announcement will inject confidence to our industry.

Energy Stability and Industrial Growth: The commitment to a fully independent, state-owned Transmission System Operator marks a milestone for industrial stability. The end of national load shedding, coupled with the target to eradicate load reduction by 2027, establishes the reliable energy environment essential for high-volume automotive production and investments. Furthermore, AIDC-EC applauds the target of 40% renewable energy by 2030, a move that should ensure local manufacturers can meet strict global "green" standards. Critically, these developments should resolve concerns raised by Mr Shenxane in Parliament on 27 January 2026, ensuring that stable water and electricity infrastructure remain the foundation of industrial operations, investments, business confidence and sustaining jobs and creating new jobs.

Improved Port Performance: The automotive sector relies on efficient logistics. AIDC-EC notes the President's report on the steady increase in volumes through our ports and the successful public-private partnership (PPP) handovers, such as at the Port of Durban. We are continuously concerned about the under-utilisation of the East London Port and we would wish to see port traffic to be shared between the Port of Durban and the Port of East London.

Enhanced Security Measures: The safety of South Africans and the protection of industrial assets are paramount. AIDC-EC receives positively the President’s directive to deploy the SANDF to support the police in fighting organised crime, particularly targeting syndicates that disrupt economic development. This direct announcement is essential for maintaining the investor confidence and operational continuity that the Eastern Cape’s manufacturing sector relies upon. We need to see the army on the ground restoring safety and confidence in our economy for investors.

Economic Diplomacy and Trade Missions: AIDC-EC notes the government's continued focus on using South Africa's high number of foreign diplomatic missions to drive investor confidence and credit rating improvements. On behalf of the Eastern Cape Government, AIDC-EC remains committed to supporting these trade missions to position the Eastern Cape as Africa’s premier automotive hub within the African Continental Free Trade Area (AfCFTA) and internationally. We urge deliberate and intensive invitation and involvement of our Eastern Cape in these missions, negotiations of trade deals to ensure active participation of our province in these economic diplomatic missions. By extension, we also welcome the market access trade deal recently negotiated between China and South Africa. What’s in it for the Eastern Cape?

AIDC-EC looks forward to working with all tiers of government and industry partners to implement these reforms. Well done on this one Mr President!!

Mr Thabo Shenxane

CEO, AIDC Eastern Cape