Parliament, Thursday, 19 March 2026 – The Portfolio Committee on Trade, Industry and Competition has spent the past two days looking at whether the Eastern Cape province’s industrial zones are contributing to industrial growth and job creation.
This week, the committee is conducting an oversight visit to special economic zones and the automotive industry in Gqeberha and East London.
On Tuesday, 17 and Wednesday, 18 March 2026, the committee visited the Coega Special Economic Zone, as well as major automotive players including Isuzu Motors South Africa and Volkswagen South Africa, alongside the Automotive Industry Development Centre in Gqeberha and Kariega, as local industry comes under pressure.
The visit forms part of Parliament’s broader focus on the strengthening of South Africa’s manufacturing sector to ensure that industrial development spreads beyond major economic centres.
The committee has acknowledged the visible progress at Coega, noting the steady expansion of the zone and its success in attracting new investors. It however, raised a critical concern on whether nearby communities were truly benefiting.
The committee stressed that development in special economic zones must translate into real opportunities for local people, including support for small businesses, more jobs, skills development, and meaningful opportunities for young people. It also emphasised the important role of provincial and local government in making this happen, particularly through targeted local procurement and support for emerging enterprises.
The Eastern Cape remains an important hub for South Africa’s automotive sector. However, industry stakeholders warned the committee that the sector is under growing pressure. Among the biggest concerns is the rise in cheaper imported vehicles, as well as an increase in vehicle manufacturers importing pre-assembled parts rather than sourcing components locally. This trend threatens local manufacturers and could weaken the domestic supply chain.
Stakeholders also called for urgent policy certainty on electric vehicles. Without clear direction, they warned, manufacturers may delay or forego critical investments in new technologies, putting local production, jobs and export markets at risk.
Committee Chairperson, Mr Mzwandile Masina, said that while the automotive industry has made a significant contribution to the Eastern Cape’s economy, its long-term sustainability cannot be taken for granted. He emphasised that government must create the right conditions for both businesses and communities to thrive, including reliable infrastructure, basic services, and a stable regulatory environment.
“The committee will engage relevant stakeholders to address some of the key challenges facing the automotive industry and other businesses in the Eastern Cape,” Mr Masina said.
The oversight visit continues today and tomorrow, with the committee heading to the East London Industrial Development Zone and the Mercedes-Benz South Africa plant respectively.
Details of the oversight are as follows:
Thursday, 19 March 2026 | |
09:00 – 12:00 | Briefing from the DTIC and the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism on the East London IDZ (ELIDZ) |
12:45 – 14:45 | Site visits to ELIDZ Science and Technology Park |
15:00 – 16:30 | Site visits to component manufacturers |
Friday, 20 March 2026 | |
09:00 – 11:00 | Engagement with Mercedes Benz |
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TRADE, INDUSTRY AND COMPETITION, MR MZWANDILE MASINA.
For media enquiries, please contact the committee’s Media Officer:
Name: Ms Faith Ndenze
Parliamentary Communication Services
Cell: 081 377 0686
Email: fndenze@parliament.gov.za
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