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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...

Eskom has issued a public notice warning of possible electricity supply interruptions in the City of Johannesburg (CoJ) from July 8, owing to an alleged failure by the municipality to honour the terms of a settlement agreement relating to outstanding debt and the payment of its current electricity account.

The settlement agreement was made an order of the High Court in November last year.

In a full-page advertisement published on Sunday, Eskom said that CoJ and/or City Power (CP) owed it more than R5.25-billion and that it had decided to initiate a process that could result in the interruption of power supply "to stop spiralling debt".

Eskom stated recently that the overall outstanding debt from municipalities had increased to over R111-billion and that it would pursue more so-called Distribution Agency Agreements with smaller municipalities, despite objections to the arrangement, including a legal challenge.

The utility issued the public notice relating to Johannesburg in line with the Promotion of Administrative Justice Act (PAJA) indicating that it intended to reduce, interrupt and/or terminate electricity supply to certain bulk supply points supplying the CoJ and/or CP.

In the notice, Eskom lists four substations, namely: Fordsburg substation, supplying Johannesburg CBD, Fordsburg, Auckland Park, Mayfair and surrounding areas; the Beyers substation, supplying Fairlands, Cresta and the surrounding areas; the Crowthorne substation, supplying Crowthorne, Carlsworld, part of Mnandi and surrounding areas; and the Allandale substation, supplying Midrand.

In November 2024, Eskom issued a similar notice to the CoJ and CP, which precipitated the negotiations that resulted in the settlement agreement and associated court order.

The court order stipulates that current electricity accounts should be paid in full and that historical debt instalments be paid according to an agreed repayment schedule.

It also states that a failure to comply will result in the immediate termination of the repayment arrangement and render the full outstanding debt immediately payable.

"Despite the existence of the court order and the indulgence granted by Eskom through the repayment arrangement, CoJ/CP has failed to honour the terms of the court order by failing to make payment of both the historical debt instalments and the current electricity account on the due dates," the Eskom notice reads.

It adds that the continued breach of the court order has raised serious concerns regarding the municipality's ability to meet its ongoing financial obligations to Eskom, and is placing Eskom under severe financial pressure.

The notice follows a hard-hitting letter written in late April by Finance Minister Enoch Godongwana to Johannesburg Mayor Dada Morero in which serious concerns were raised about the city's financial sustainability and its compliance with the Municipal Finance Management Act.

Following a meeting between Godongwana and Morero on May 8, the Finance Minister issued a statement indicating that the mayor had agreed to consider serious remedial actions to address the issues raised and that the city would submit a formal report to the Treasury in response to the letter.

In parallel, Eskom indicated that it had resumed the PAJA process notifying residents and businesses of its intention to reduce, interrupt and/or terminate supply to certain bulk supply points supplying CoJ/CP with effect from July 8.

"Eskom appreciates the hardships the community and the economy will suffer should it exercise its statutory powers to disconnect the municipality. However, there are no other meaningful options available for Eskom to stop the debt and collect for current consumption on bulk supply."

Eskom also invited affected parties to make written representations before the end of business on June 17, while also indicating that it would be open to "progresive representations" in relation to direct payment by customers or direct supply from Eskom.

In March, Eskom issued...

Engineering News editor Terence Creamer discusses the significance of the Transnet Rail Infrastructure Manager's (TRIM's) signing of rail access agreements with 11 private train operating companies.

While South Africa's raw water supply remains in balance with existing demands on a national scale, localised deficits remain – with municipal water services reliability declining sharply – and water board debt is increasing.

This has resulted continued worsening water services disruptions, sewage spills and poor water quality in many areas, as highlighted in the most recent release of the Department of Water and Sanitation's (DWS's) Green Drop Report.

The report shows that there has been an increase in the percentage of municipal wastewater systems in a critical state of performance, from 39% in 2022 to 47% in the 2025.

During her Budget Debate on Friday, Water and Sanitation Minister Pemmy Majodina said that overdue debts from municipalities to water boards have also deteriorated.

As at March, overdue debt, excluding current invoices, amounted to R23-billion, while total debt exceeded R27-billion, an increase from R24-billion of total debt reported in July 2025.

This is despite ongoing interventions, with water boards increasingly implementing credit control measures, including throttling water supply to non-paying municipalities and attaching municipal bank accounts.

Majodina said she has also led coordinated engagements with Premiers, Mayors and Cooperative Governance and Traditional Affairs MECs to improve payment compliance, while National Treasury has implemented the withholding of equitable share allocations for the worst non-paying municipalities, which has affected 62 municipalities to date.

Turning to the municipal services decline, Majodina pointed out that while most people now have access to a tap, water often does not come out of the tap or is not safe to drink.

To mitigate the challenge at the reticulation level, President Cyril Ramaphosa's National Water Action Plan targets reforms to the way in which the services are delivered to improve their financial sustainability and to ensure that they are effectively managed by staff with the required competencies.

The action plan focuses on the ring-fencing of revenue from the sale of water, supporting the operation, maintenance, upgrading and long-term sustainability of municipal water services and addressing crime, corruption and sabotage in the water sector.

The DWS will also make increasing use of its water boards and other implementing agents such as the Development Bank of Southern Africa to assist struggling municipalities to implement projects more expeditiously.

The focus of the increased support and intervention will be on the worst performing 107 municipalities in terms of the full 2023 Blue Drop and full 2025 Green Drop reports.

The department is also supporting broader institutional and governance reforms within the water sector, including support for National Treasury's Metro Trading Service reforms and technical guidance on ringfencing municipal water services as sustainable trading functions.

"We also support some of the metropolitan municipalities with major strategic infrastructure projects, including the Klipdrift water treatment works in Hammanskraal, in Tshwane, as well as the Welbedacht pipeline in Mangaung," Majodina said.

Phase 1 of the Welbedacht pipeline was completed in June 2025 at a cost of R585-million, improving water supply reliability to Mangaung. Phase 2, which comprises a 71 km expansion estimated at R1.6-billion, is in advanced planning, with implementation scheduled from 2027 to 2032.

In addition, the DWS initiated a nationwide programme to accelerate access to water services for unserved communities, many of which are in rural areas.

The programme seeks to implement rapid, cost-effective and appropriate interventions such as groundwater development, spring protection and rainwater harvesting, in addition to extensions of existing water supply systems.

Substantial work has been done to identify communities and potential water sources where there is no formal potable water infrastructure or where existing systems are non-function...

The South African automotive industry and government have not yet found "that sweet spot" that would shore up the local manufacturing sector as it faces declining local parts content and increasing competition from imports, says naamsa | The Automotive Business Council president and BMW Group South Africa CEO Peter van Binsbergen.

Government is reviewing the second iteration of its Automotive Production Development Programme (APDP 2) this year, amid a rapidly changing global automotive industry.

The automotive manufacturing support programme is set to run to 2035.

Speaking during the launch of the Automotive Trade Manual 2026 on Friday, Van Binsbergen confirmed that talks were ongoing between naamsa, the National Association of Automotive Component and Allied Manufacturers and the National Union of Metalworkers of South Africa to develop recommendations to government on how to adapt its policies to strengthen the local automotive manufacturing industry "without any unintended negative consequences on other parts of the industry, or the consumer".

"This is a complex topic," said Van Binsbergen. "We are not there yet and I can say that clearly. We are working hard, together with government and each other. The current process is very constructive, but we are not there yet."

Steeper import duties on vehicles from China, and/or a cut in the ad valorem tax levied on locally made vehicles have been placed on the table earlier this year as possible solutions to strengthening South Africa's biggest manufacturing sector.

Van Binsbergen also on Friday commented on the impact of the current Iran conflict on the local industry, noting that the effect "was very brand specific, depending on your logistics network, where your regional parts warehouses are – those kinds of things".

He added, however, that all brands shared the same concern around increased fuel prices and the potential knock-on effect in terms rising inflation, increasing interest rates and declining consumer confidence, which "would hit us all equally".

Toyota South Africa Motors CEO Andrew Kirby noted that the Durban-based manufacturer had been experiencing challenges in its exports into the rest of Africa.

"In East Africa we have shipping lines that traditionally trans-ship through the Middle East. We are trying to find alternative routes, so that has had an impact on us, but we are working our way through that.

"We still have a couple of ships stuck in that area with vehicles, but in terms of ongoing business we have been able to find alternative routes."

Kirby added that a secondary challenge of the Iran conflict had been the significant impact on the cost of global logistics, as well as delays in logistics chains.

Also, as shipping lines had been forced to move around the conflict-ridden Middle East, it had caused congestion on other routes, such as to and from Singapore.