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Welcome to the latest edition of the Sassda GPS eNewsletter, where we track the pulse of South Africa’s manufacturing, economic, and trade landscape. In this issue, we spotlight encouraging GDP growth figures for Q2, driven by a strong rebound in mining and manufacturing. The automotive sector is also showing signs of recovery, although affordability and export concerns remain. South Africa is also in talks with major Chinese automakers to establish local EV and hybrid manufacturing, signalling a potential shift in the industry. On the energy front, rooftop solar capacity has surged past Eskom’s IPP totals, reflecting a growing trend toward decentralized power solutions and in a major infrastructure development, Transnet has deployed new high-tech cranes at the Cape Town Container Terminal to improve port efficiency.
Read on for full insights and updates!
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South Africa in Talks with Chinese Automakers
to Boost Local Production
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South Africa is negotiating with several Chinese automakers to establish local manufacturing operations as part of a broader strategy to revive domestic automotive production. According to Deputy Trade and Industry Minister Zuko Godlimpi, one Chinese company has already expressed interest in setting up a plant in East London or Nelson Mandela Bay. The country is aiming to shift from being an importer to a regional manufacturing hub, with a focus on hybrid and electric vehicles…
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New Cranes Set to Boost Efficiency at Cape Town Container Terminal
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Transnet has launched nine new rubber‑tyred gantry cranes (RTGs) at the Cape Town Container Terminal (CTCT) in a bid to improve throughput and operational efficiency. These are part of a broader order of 28 RTGs under a R3.4 billion investment to upgrade terminal capacity, with 19 units still being assembled. The new machines feature anti-sway systems and can operate in wind speeds up to 90 km/h – an upgrade over the current RTGs, which are limited to 72 km/h…
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Rooftop Solar Now at 7 300MW, Overtakes All
Eskom’s IPP Capacity
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Rooftop solar capacity in South Africa has reached a staggering 7 300MW, surpassing the total output of all Eskom’s Independent Power Producer (IPP) projects combined. This growth highlights a significant shift toward decentralized, consumer-driven energy production amid persistent grid instability. While this transition offers resilience, it also raises challenges around regulation, grid balancing, and equitable access. Experts warn that policy must evolve to integrate private generation without undermining the national energy strategy…
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SA Economy Expands by a Better-than-Expected
0.8% in Q2, with Mining Leading the Way
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In a rare spot of economic optimism, South Africa’s GDP grew by 0.8% in Q2 of 2025, beating analyst forecasts and rebounding from previous quarters of stagnation. The mining sector was the standout performer, expanding 3.7%, its best pace since early 2021, driven by strong output in platinum group metals, gold, and chromium ore. Manufacturing also showed solid growth at 1.8%, led by the automotive and chemicals industries. While encouraging, the modest uptick isn’t enough to significantly reduce unemployment or poverty, but it may signal a tentative recovery amid ongoing structural challenges…
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Automotive Market is Recovering, but
Affordability and Export Headwinds Threaten
Long-Term Growth
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South Africa’s automotive market showed signs of recovery in 2025, buoyed by low interest rates, OEM incentives, and the two-pot pension reform that boosted liquidity. Passenger car sales climbed above 35,000 units in July and August – the strongest figures since 2014. But despite the resurgence, affordability constraints and export challenges cloud the long-term outlook. Chinese automakers are disrupting the market, with their share rising to 15% thanks to value-driven SUVs and expanding dealer networks…
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How Construction Contractors Can Avoid Hidden Project Risks That Break the Bank
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Construction projects are fraught with hidden risks that can derail budgets and timelines. From unclear contract terms to incomplete site assessments, contractors often overlook key red flags. Experts recommend a more rigorous pre-construction planning process, including legal reviews and independent audits of site conditions. Digital tools for risk tracking and real-time communication also help mitigate surprises. By proactively addressing potential issues, contractors can shield themselves from major financial shocks and reputational damage…
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Trump’s Trade Envoy to Meet with Trade Minister Parks Tau
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A U.S. trade delegation under former President Trump’s administration is expected to meet with South Africa’s Trade Minister, Parks Tau, to discuss bilateral trade ties. The meeting comes amid shifting global alliances and growing calls to diversify South Africa’s export markets. With AGOA renewal uncertain, South Africa is expected to press for clarity on future trade preferences while reinforcing its strategic value as a gateway to the continent. The visit signals a potential pivot in economic diplomacy as the U.S. recalibrates its position in Africa…
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Transnet Engineering Signs Another Contract
with Eswatini Railways
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Transnet Engineering (TE) has signed a new three-year deal with Eswatini Railways for the supply of 26 wagon wheelsets and locomotive maintenance services. All wheelsets will be manufactured in South Africa, while TE technicians will handle on-site maintenance in Eswatini. This contract builds on an existing partnership, which includes a two-year diesel locomotive maintenance agreement. TE’s efforts are aimed at empowering Eswatini’s rail sector by building local skills and internal technical capacity…
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DBSA Announces Finalisation of Major Investment
In EV Charging Station Company CHARGE
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The Development Bank of South Africa (DBSA) has finalized a R100-million investment into Zero Carbon Charge (CHARGE), a local company pioneering a national network of solar-powered, off-grid EV charging stations. This move marks a pivotal step in supporting the growth of South Africa’s electric vehicle market and bolstering green energy infrastructure. CHARGE’s model, built entirely on renewable energy, aims to build consumer trust and support rural economies by engaging local landowners…
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One of South Africa’s key exports is in trouble
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Global primary platinum group metal production could fall by as much as 20% by the end of this decade, widening a supply deficit, Valterra Platinum CEO Craig Miller said this week. Miller said demand from carmakers, who use platinum, palladium and rhodium in catalytic converters, had remained robust, driven by higher sales of both conventional and hybrid vehicles, with the energy transition unfolding more slowly than forecast…
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