The EU, which announced a €12-billion investment package for South Africa in October, is undertaking investment roadshows in Johannesburg, Cape Town and Durban this week as part of efforts to convert the high-profile investment pledge into firm projects.

The EU and South Africa signed the Clean Trade and Investment Partnership (CTIP) in November last year, alongside a memorandum of understanding on sustainable minerals and metal value chains.

The CTIP is aligned with the bloc's Global Gateway strategy to mobilise investment for infrastructure and selected industries in developing regions, as well as the EU's €8.7-billion support for South Africa's Just Energy Transition.

The EU is also supporting the roll-out of digital infrastructure and the building of a South African pharmaceuticals value-chain through the Global Gateway strategy.

The CTIP with South Africa focuses primarily on clean industry and energy sectors, including: renewable energy and low-carbon technologies; electricity transmission infrastructure; clean fuels, including sustainable transport fuels; raw materials and mineral value chains; as well as climate mitigation an adaptation technologies.

The roadshow kicked off at the JSE in Johannesburg on June 1 and 2, with Trade, Industry and Competition Minister Parks Tau and EU Ambassador to South Africa Sandra Kramer both expressing optimism that investors would be able to conclude partnerships that could result in concrete projects.

Roadshows were scheduled for Cape Town on June 3 and 4, as well as Durban on June 5.

In his address, Tau said the CTIP arose from a joint recognition that trade between South Africa and the EU was not enough and that higher levels of investment were also needed.

"The Global Gateway Investment Package gives us the capital framework. This roadshow gives us the project pipeline," Tau said.

He added that South Africa and Europe had an opportunity to jointly develop new industries, many of which were being underpinned by decarbonisation objectives, and strengthen value chains, particularly in the area of critical minerals.

"Our objective is not to export raw materials. Our objective is beneficiation, processing and industrial development on South African soil," the Minister said, while highlighting South Africa's endowments of platinum group metals, manganese, vanadium and other strategic minerals.

Kramer said that the events in the three cities would bring together development finance institutions, other investors and European and South African companies to promote specific project opportunities in South Africa.

She reported that 200 companies would participate, alongside ten financial institutions.

The investment prospects were not identified, but closed sessions had been scheduled across all three events to allow for these to be pitched.

"It's not just talking shop," the ambassador insisted.

"We are bringing the investors to businesses across the country [and] we are demonstrating how our investment tools can concretely result in investments in priority projects that ensure scale and impact," she said.

The roadshows follow on for the inaugural EU-South Africa Energy Dialogue and Business Forum, which took place in Brussels in May, and will be followed by the first EU-South Africa government-to-government engagements on CTIP in early July.

The South African Bureau of Standards (SABS) says it has accepted the findings of a much-delayed forensic investigation confirming many of the serious governance, procurement, labour and information-technology problems initially flagged by whistleblowers in 2024.

Trade, Industry and Competition Minister Parks Tau appointed TSU Investigation Services to conduct a forensic probe into the allegations, which began in February 2025, and subsequently suspended COO Lungelo Ntobongwana and chief corporate services officer Lizo Makele in July 2025.

TSU was initially expected to finalise its investigation by May last year, but it was confirmed during a presentation to the Portfolio Committee on Trade, Industry and Competition on Friday that the final set of ten reports had been presented to the SABS board only on March 18 this year.

The investigation, it emerged, had been hampered by difficulties in accessing key information, compromised by a serious cyberattack on SABS in November 2024.

This not only disrupted the operations at the public entity, which maintains over 7 600 national standards and operates 28 testing laboratories, but also meant that the TSU eventually had to "image" 24 individual computers to secure the information it required to complete the investigation.

SABS chairperson Professor Bismark Tyobeka confirmed that the board and executive management had accepted the findings and had initiated a range of interventions to remedy the problems, including disciplinary proceedings.

The forensic report itself was not shared with the committee, but Acting CEO Blake Mosley-Lefatola provided an overview of its findings, which confirmed that there had been serious breaches of governance, recruitment and procurement processes.

These included evidence of irregular and wasteful expenditure, improper conduct by employees, the nonprocedural appointment of an executive to the role of acting CEO, undeclared conflicts of interest, duplicate payments of board fees, the appointment of an executive that failed to meet the minimum requirements for the post, a case of work experience being misrepresented during a recruitment process, inaccurate payroll capturing, the misuse of fixed-term contracts, the appointment of four new labs in a manner that breached government's procurement legislation, and fruitless and wasteful expenditure in relation to a R24-million Building Management System contract.

Mosley-Lefatola said that 14 recommendations arising from the report had been implemented and another nine, including disciplinary hearings, were ongoing. He told the committee that the intention was to finalise the disciplinary hearings by the end of July.

Quarterly progress reports on the actions being taken to implement the recommendations would also be provided to the Minister and the department, which Deputy Minister Alexandra Abraham said could be shared with lawmakers at their request.

ONGOING ALLEGATIONS

DA spokesperson on trade, industry and competition Toby Chance welcomed the report but reported that he continued to receive worrying allegations of mismanagement at SABS, as well as attempts to intimidate or muzzle whistleblowers.

Tyobeka said that he, too, continued to receive allegations of wrongdoing against the current board and executive but urged recipients of such messages to be "judicious" in their treatment of these new accusations.

The organisation had been in deep distress in recent years and also "at war with itself" This, Tyobeka said, had resulted in emergence of employee "factions", including those who opposed the actions being taken currently.

A whistleblowing channel, which was independent from management, was now in place, alongside a clear policy on how such complaints should be managed.

Tyobeka warned, however, that those employees who were found to be making false allegations could face disciplinary action. "Ultimately we need to separate fact from fiction," he added.

Mosley-Lefatola said the TSU process had enabled SAB...

Engineering News editor Terence Creamer discusses some of the issues the National Energy Regulator of South Africa will need to consider in relation to an application by Eskom to extend a 62c/kWh tariff to two struggling ferrochrome producers.

Eskom has started construction of a 75 MW solar PV project alongside its Lethabo coal-fired power station in the Free State, which is expected to generate some 147 GWh yearly once at full production.

The State-owned company said in a statement that the R1.2-billion project formed part of a "construction-ready pipeline" of at least 2 GW of renewable energy and pumped storage projects to be progressed during 2026.

"Funding for these projects has been provisioned within Eskom's approved capital expenditure programme and will be financed through on-balance sheet funding, in line with National Treasury debt relief conditions, without reliance on additional project finance borrowing," Eskom said in a statement.

The State-owned utility is trading under a R232-billion debt-relief package extended to it by the National Treasury, the terms of which have hitherto restricted Eskom from undertaking new generation projects.

Eskom group executive for renewables Rivoningo Mnisi also described the sod turning as a significant milestone for Eskom Green, which is being set up as a standalone Eskom subsidiary to diversify the group's generation mix away from coal and support South Africa's Just Energy Transition.

Another 17 high-priority projects had been identified for implementation across Eskom's existing coal-fired power station footprint, with construction expected to commence between now and 2028.

The projects, Eskom said, were expected to deliver approximately 6 GW of new capacity by 2030 and could be located at Arnot, Duvha, Majuba, Tutuka, Komati, Kendal, Kusile, Hendrina, Camden and Grootvlei.

"By leveraging existing power station infrastructure, this [Lethabo] project demonstrates the practical integration of renewable-energy technology within our existing coal-fired power station fleet infrastructure and signals Eskom's continued commitment to strengthening security of supply while transitioning toward a lower-carbon future," Mnisi said.

However, Eskom Green also planned to expand into new geographic and technological opportunities and planned to pursue partnerships, co-development opportunities and strategic acquisitions.

The proposed funding framework, Eskom said, would ensure limited recourse to its balance sheet using project finance principles for the renewable-energy projects through dedicated project special purpose vehicles.

"This will lead to the advancement of Eskom's pipeline of more than 32 GW of cost-competitive renewable-energy and storage projects by 2040 to diversify its energy mix as part of the emissions reduction strategy and enable customers to decarbonise over the life of their operations."

Eskom had not partnered on the Lethabo project, however, and it did not immediately respond to questions about whether the project had secured a budget quote for the grid capacity it would use.

In light of South Africa's current grid constraints concern has been raised about the prospect of grid capacity linked to existing power stations being immediately transferred to Eskom for its own renewables projects.

Critics have suggested that this could amount to anti-competitive behaviour, and could run counter to Eskom and the National Transmission Company South Africa's commitment to fair, transparent, and open grid access.

During a recent presentation, Eskom Green GM for business development Khutso Sekgota said the entity welcomed the shift to a rules-based competitive electricity supply industry and insisted that it would receive no preferential treatment in relation to compliance with grid access rules, market codes and competition laws.

The Pretoria High Court has granted a landmark interim order that Foot-and-Mouth Disease (FMD) vaccines may be procured and administered privately, without State veterinary involvement.

The court also interdicted Agriculture Minister John Steenhuisen from interfering in private commercial relations of those who lawfully import FMD vaccines into South Africa.

The order, in favour of industry bodies Sakeliga, SAAI and Free State Agriculture, confirms that owners and managers of cloven-hooved livestock may independently procure and administer lawfully-obtained FMD vaccines.

The High Court found that Steenhuisen, the director-general (DG) of the Department of Agriculture (DoA) and the director of animal health at the DoA had "vehemently opposed" the application, yet "failed to indicate any substantive defence," "engineered delays in having the matter heard and adjudicated upon", and that their conduct "calls for some sanction from the court".

In reference to government's Section 10 scheme which involves voluntary FMD vaccination under State supervision, the High Court described the scheme as "vexed" and said it did not provide for any controlled purpose or for the improvement of animal health.

Sakeliga explains that, thanks to the court order, combating FMD with vaccination is now possible for both the private sector and the State simultaneously, rather than only for the State.

Farmers, feedlots, dairy operations and related agri-businesses now have a court-protected route to procure approved FMD vaccines from lawful importers, manufacturers or their agents. No participation in the State's Section 10 scheme is required.

They may also administer those vaccines to their livestock under the notification and reporting conditions set out in the order – written notice to the provincial director five days prior and 14 days after vaccination.

Sakeliga affirms that there may be no commercial interference with vaccines. "The court order interdicts the Agriculture Minister, the DG and the director of animal health from interfering in the commercial relations of those who lawfully import FMD vaccines and their international suppliers.

"While no finding on alleged wrongdoing was made in the urgent proceedings, the interdict springs from evidence put forward by the applicants that the Minister or his associates had interfered in an importation agreement reached by a local animal vaccine importer and an Argentinian vaccines manufacturer," Sakeliga explains.

Meanwhile, existing State FMD eradication efforts remain unhampered. Existing measures pertaining to the movement of livestock and the reporting of suspected FMD incidents are left undisturbed, and the State retains its discretion to allocate vaccine that it has itself procured.

As recorded by the court: "the State may avail FMD vaccine to the private sector for private administration in accordance with the terms herein, but is not obliged to do so", and "nothing in this order deprives any owner/manager of livestock from seeking assistance from the State or a private veterinarian."

Sakeliga says the judgment vindicates what the applicants have argued from the outset: that there is no lawful impediment to livestock owners and managers obtaining approved FMD vaccines and administering those to their animals. In fact, the order handed down is exactly the proposed order as tendered by the applicants during proceedings.

Importantly, no permission from the Minister or other State officials is required for private FMD vaccination efforts, neither under the "flawed" Section 10 scheme nor otherwise.

The court ultimately rejected the State's framing of private vaccination as something that would obstruct government efforts. In fact, the court held that "interim relief would not impact negatively upon the [State parties'] exercising of their obligations in curtailing the FMD" but "would assist them in the fight against FMD".

In deciding on costs, the court noted the engineering of delays and the lack...

Although Eskom confirmed that it would not make a profit from the sale of electricity to two ferrochrome producers at a tariff of 62c/kWh, the State-owned company nevertheless argued that the costs associated with forgoing the 12.8 TWh of yearly demand arising from the smelters would be larger and more damaging.

Specifically, Eskom said the deal would allow it to avoid a R56-billion "downside risk" associated with take-or-pay coal contracts, while safeguarding R42.5-billion in revenue over the period of the smelter contracts, which also had take-or-pay commitments.

The price and terms of a proposed revised negotiated pricing agreement (NPA) between Eskom and ferrochrome producers Samancor Chrome and Glencore-Merafe Chrome Venture were the subject of public hearings hosted by the National Energy Regulator of South Africa (Nersa) on May 25.

In January, Nersa approved an interim tariff of 87.74 c/kWh for the two companies after they invoked the hardship provisions of their existing NPAs.

Those original NPAs included a tariff of 136c/kWh that was already well below the more than 200c/kWh charged to Eskom's standard tariff customers, which had hitherto also absorbed all the costs of Eskom's NPAs with electricity-intensive firms.

However, the companies indicated that further job losses and smelter shuts would arise unless the tariff could be reduced further to 62/kWh, and retrenchment processes were initiated and postponed several times as subsequent negotiations with Eskom were undertaken.

The ferrochrome producers cited an inability to compete with smelters in China, which were largely processing South African-mined chrome ore using electricity that is far more favourably priced.

Electricity accounts for about 52% of ferrochrome production costs.

South Africa is estimated to host 80% of the world's chrome reserves, but the country's share of global ferrochrome output has fallen from 51% in 2001 to about 10% currently, while China's share has expanded from about 5% to 65% over the same period.

The slump has coincided with steep electricity tariff increases of more than 500% to the smelters since 2010 and currently only 11 of the domestic industry's 66 smelters are still operating.

Therefore, while the domestic ferrochrome industry has a theoretical yearly nameplate of 4.9-million tons it is producing less than 1-million tons and much of the previous capacity is unlikely to be restarted as it has been out of production for too long.

In April, Eskom announced that a 62c/kWh offer had been made to Samancor Chrome and Glencore-Merafe and it subsequently applied to Nersa to amend its NPAs with the ferrochrome producers.

The regulator initiated public consultations while committing to complete its deliberations before the end of May.

LOAD RETENTION

At the virtual hearing, Eskom Distribution's Gugulethu Dumakude argued that the NPAs should not be viewed as a tariff concession but as a load-retention intervention.

She said that losing the 12.8 TWh of demand would have broader implications for the power system, including irrecoverable revenue losses, under-utilised generation capacity and upward tariff pressure on remaining customers.

Under the proposed framework, Samancor Chrome would enter into a five-year contract with a minimum three-year, 80% take-or-pay commitment, while Glencore-Merafe would conclude a three-year agreement with a minimum two-year, 80% take-or-pay arrangement.

The proposed contracts also include several revenue protection mechanisms for Eskom, including a deferred revenue mechanism during the early stages of the agreements and a 50/50 upside-sharing arrangement above a defined ferrochrome price threshold.

Economic hardship relief would also only be allowed after a minimum commitment period.

The utility insisted that the NPAs would be ring-fenced and that their costs would not result in cross-subsidisation by other customer categories.

"We are going to ensure that the revenue shortfall is not socialised through the ...

Tata Africa aims to launch a fully electric commuter bus in South Africa "within the next few months", says Tata Africa Holdings CEO Jacques Taylor.

The vehicle will be assembled locally, and will add to the MAN, Volvo and BYD electric buses already available in South Africa.

Taylor is positive that the recent surge in fuel prices owing to the Iran conflict have served to stimulate interest in electric vehicles not only worldwide, but also in South Africa.

Taylor spoke to Engineering News Online at a two-day Tata Motors Commercial Vehicles event held in Cape Town last week.

The India-based company showcased some of the products it is either ready to launch, or currently developing for markets worldwide.

Tata Motors last year split into two separate listed companies to unlock shareholder value – Tata Motors Passenger Vehicles (TM PV), and Tata Motors Commercial Vehicles (TM CV).

The distribution rights for TM PV vehicles lies with JSE-listed company Motus, while Tata Africa distributes TM CV vehicles in South Africa.

Taylor said last week that Tata Africa would also expand its electric offering within the next 12 months to include the small last-mile Ace Pro truck, which would also be assembled in South Africa.

A third electric product in the pipeline is an electric tipper truck specifically targeting the mining and construction industries.

Another product of interest should be the Xenon one-ton bakkie, which is set for a comeback following the exit of Tata passenger vehicles from the local market in 2019. (Passenger cars have since returned under the Motus banner.)

Taylor said the new Xenon range was currently being homologated, and that the goal was to start selling four models of the vehicle, double-cab included, in the local market from August onwards.

Assembly Operations Expanding Tata Africa operates a commercial vehicle assembly plant in Rosslyn, Tshwane.

The group's acquisition of Italian commercial vehicle giant Iveco – which was to be finalised later this year – would see Iveco end assembly at its Rosslyn plant, with all production to be merged at the Tata facility in June, noted Taylor.

This move pre-empted any merger talks, he added.

Tata Africa also assembles commercial vehicles in Kenya, with operations in Uganda and Tanzania to start by the end of the year.

TM CV CEO Girish Wagh said at the Cape Town event that the Iveco acquisition would see the Tata group emerge as the world's fourth largest manufacturer of commercial vehicles over six tons.

Tata also owns the Daewoo truck brand, which is also assembled at the Rosslyn plant.

Wagh added that the group was seeking a fresh approach in Africa, which it had targeted as one of the globe's few remaining growth markets.

Product Line-up Tata's forthcoming electric portfolio includes the Ace Pro EV zero-emission electric mini-truck built for last-mile deliveries; the Intra EV high-payload electric pickup engineered for urban cargo duty cycles; the Ultra E.9 light electric truck designed for intra city logistics; and the Prima E28.K electric tipper.

Internal combustion engine products either already available or in the pipeline include the Intra V30 and V70 pickup range; the Intra V30, with a higher payload of 1.95 t and a 10 ft load body; the Azura 1918 intermediate and light duty truck; the Ultra Prime RE 10.8-m rear-engine midi bus; the LPO 1618 Magna 44-seater bus for staff and inter-city travel; the LP 909 9.3-m compact midi bus for school and staff transport; and the LPO 1623 Nova 49-seater bus designed for longer inter-city routes.

Engineering News editor Terence Creamer discusses the growing challenge of municipalities' failure to settle arrear debt owed to power utility Eskom, as well as the possible remedies to this growing problem.

South Africa's long-running market leader has finally launched its first fully electric vehicle in the domestic market – the Toyota bZ4X.

Priced rather steeply at R1.18-million, this battery electric sports-utility vehicle (SUV), with a driving range of roughly 450 km, is not for everyone, however.

"The bZ4X represents an important milestone for Toyota South Africa Motors (TSAM) as our first battery electric SUV in the local market," says TSAM product communication manager Mzo Witbooi.

"Globally, the RAV4 has shown just how popular practical, family-oriented SUVs have become, and the bZ4X brings many of those same qualities into a fully electric package."

Witbooi says the bZ4X is not designed only for city driving, but also delivers credible off-road performance.

"For the South African market, the bZ4X also plays an important role in helping customers become more familiar and comfortable with battery electric technology," he adds.

"It demonstrates that battery electric vehicles (BEVs) can be practical, dependable and suitable for everyday lifestyles."

Witbooi says there has been a noticeable shift in consumer interest towards BEVs in South Africa in recent years.

"At present, however, much of this interest is still influenced by lifestyle aspirations and early technology adoption, rather than outright practicality.

"This is where vehicles like the bZ4X become especially important. It is not only an electric vehicle, but also a practical and versatile SUV that meets everyday mobility needs.

"Historically, much of the focus around BEVs has centred purely on their electric credentials, whereas the bZ4X offers customers a well-rounded vehicle experience first and foremost."

It is also important to recognise that vehicle electrification has evolved progressively through hybrid electric vehicles, then plug-in hybrids, with BEVs now gaining traction, notes Witbooi.

Toyota is also the country's best-selling hybrid vehicle brand.

In South Africa, TSAM expects hybrids to remain the dominant technology within the new-energy vehicle space for the foreseeable future, owing largely to pricing considerations and infrastructure realities.

"Hybrid vehicles are currently among the most accessible electrified powertrains and do not rely on external charging infrastructure, as the battery system is self-charging during normal driving," explains Witbooi.

"While some may advocate for BEVs as the sole solution, Toyota's approach is centred on providing mobility solutions that meet the real-world needs of customers in different regions.

"Toyota believes there is no one-size-fits-all solution to electrification. Our multi-pathway approach allows us to offer the right technology for the right market at the right time – whether that is hybrid, plug-in hybrid, battery electric, fuel cell or internal combustion.

"In markets like South Africa, this approach ensures customers have practical and realistic mobility solutions while infrastructure continues to evolve."

With its first BEV now available in South Africa, and BEV imports growing rapidly, will Toyota bring more of these vehicles to the country?

"TSAM does not comment on future product plans," says Witbooi. "However, we continuously monitor market trends and customer feedback to better understand evolving consumer needs and expectations.

"It is worth noting that Lexus launched the RZ BEV in South Africa earlier this year.

"The Lexus ES – which will launch in the second half of this year – will also be available in a BEV variant, and we are also studying the possible introduction of a seven-seater electric vehicle around early 2027."

South Africa has officially raised import protection across a wide range of upstream and downstream steel products by between 10% and 30% – rates that are in line with the World Trade Organisation (WTO) 'bound rate', or the legally permitted maximum import tariff rate that can be applied by a member country.

The adjustments, which have been signalled for some time, were published in the Government Gazette by the South African Revenue Service on May 15 and signed by Finance Minister Enoch Godongwana.

The intervention follows a far-reaching review of South Africa's steel tariffs undertaken by the International Trade Administration Commission of South Africa (Itac) in line with a 2024 directive issued by Trade, Industry and Competition Minister Parks Tau.

The directive mandated a comprehensive investigation into the tariff structure of steel products under chapters 72, 73, 82, and 83 of the tariff book, which have been estimated to involve yearly imports with a combined value of about R66-billion.

The amendments to the tariff schedule have been made in terms of Section 48 of the Customs and Excise Act and cover imports arising from countries that do not have a trade deal with South Africa.

It thus excludes steel imports from the UK, the EU, as well as countries that have signed up to the African Continental Free Trade Area Agreement and the European Free Trade Association.

An analysis published by XA Global Trade Advisors immediately after the publication of the Gazette notice lists the new general rates of duty as including:

10% on a wide range of flat-rolled, electrical and alloy steel products;15% on welded and seamless tubes and pipes, fittings, tanks and drums, wire ropes, fencing, chain, screws, staples and other downstream articles;20% on hand tools, saws, wrenches, hammers, pliers, screwdrivers, interchangeable tooling and household knives; and30% on select fittings, washers and steel baths.

In an interview with Engineering News, Itac chief commissioner Ayabonga Cawe highlighted that the amendments to the tariff schedule had been published alongside rebate measures for which importers could apply using Itac's standard rebate adjudication process.

Cawe said the decision to offer rebates on products not currently manufactured in South Africa rather than implementing zero duties was because many of the products had been produced locally previously.

"A key thing that was reinforced by this review was the extent of product coverage that we've lost in the last few decades as a country," Cawe said, adding that one of the goals was to create the space for the resumption of production.

XA Global Trade Advisors highlighted that a full rebate could be sought for products such as semi-finished billets, aluminium-zinc coated coil, H-sections, wire rod, rails, as well as seamless and galvanised tubes, provided the products were not produced locally.

However, some of the rebates were also limited to defined end-uses, such as hot-plate stoves, mining-core trays, domestic fridges and freezers, insulated panels, steel garage doors, railway turnouts, port infrastructure, water infrastructure, fire systems, and pipeline assembly.

GLOBAL CONTEXT

The move to raise tariffs, Cawe added, also had to be considered within a global context where many of South Africa's trading partners were introducing protection.

Some countries, such as the US, were doing so by invoking national security as a rationale, while others, including the EU, were using legal mechanisms in the WTO, such as Article 28, to modify or withdraw previously agreed-upon tariff concessions.

"It's quite clear that the world is becoming a lot more protectionist than it might have been two decades ago, and you can either lament that, or you can see to what extent you navigate it with the tools you have at your disposal in a manner that protects the industrial base."

He acknowledged, however, that tariffs by their nature had price-raising effects and said that Itac would review the e...