What is the South African Electricity Value Chain doing?

Electric vehicle at the charging station. Source: California Consumer Lawyers

A report by the Cape Town Department of Enterprise and Investment Department with Green Cape to curb greenhouse gas emissions provides insights into the electric vehicle value chain and ecology.

The report, Electric vehicle ecosystem and associated value chains, South Africa’s related value chain for electric vehicles and the role that the city can play in this ecosystem.

The transport sector relies on fossil fuels as a major contributor to global greenhouse gas emissions. About 15 percent of the world’s greenhouse gas emissions could go to the transport sector.

Have you read?
E-mobility is already in SA and business opportunities are plentiful

In particular, there is now a global consensus that climate change targets for the automotive sector by 2030 should not be included in the transport system. ICE upgrades alone are not enough to achieve these goals.

A variety of key players are competing to shape the South African EV market, both in the public and private sectors. The private actors, however, are now more active and dominant in this ecosystem and construction. The actual volatility of the industry is still being observed, and the timing of key cutting points is largely unknown.

Heavy vehicles
Toyota Fuel Cell Module

Highlights of the report: South African Electric Vehicle Value Chain

The report has a matrix system that measures the potential of a particular sector in the value chain ecosystem. Sectors that have shown high standards follow the research and development of the automotive manufacturing sector. These two sectors in the value chain reflect positive outcomes for potential job creation and economic development in South Africa.

The report details the potential of each sector:

Automotive production

The automotive manufacturing sector is a key player in the country’s economy, contributing 6.4% of GDP, $ 14.12 billion (R201.7 billion) in revenues, and 27.6% in 2019. Revenue from this sector was over $ 35.6 billion (R500 billion) in 2019, and the industry directly or indirectly employed up to 900,000 people – including wholesale, retail and maintenance.

Research and Development Network

Lack of technical skills is still a concern. This is an area where the public sector and academic and training institutions provide the necessary training materials and courses and financial support for related technical courses such as engineering.

Power supply and electrical grid

A.D. By the end of 2020, South Africa had a total capacity of 51.6GW, CSRI. In the same year, the load fell by a huge limit of 1,798GWh compared to the energy flow generated by 1,269 GW per year for 859 hours (9.8%) – the worst the country has ever experienced. Recently, however, the desire to buy and renew energy from independent energy producers has changed the landscape.

The report highlights other key components in the electric vehicle value chain such as infrastructure, finance and consumer electronics. Read more on this. Electric vehicle ecosystem and associated value chains Report

Join our industry experts at “Smart Mobile Mobile Africa Digital” (October 5-7) to be part of a key decision-making discussion on electric vehicles.

Leave a Comment