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New BOATPro research presented at the African Boating Conference, held in Cape Town this week, shows that Southern Africa recorded 36 visiting superyachts over 24 m last year, compared with just 14 in 2019. Significantly, the average length of visiting yachts in 2025 was 60 m, compared with a global average of around 34 m. The research also shows that the economic benefits of these visitors extend well beyond the marina. A superyacht valued at $50-million could generate an estimated $105 000 to $330 000 in local expenditure during a two-week visit, supporting businesses ranging from marine engineering and provisioning to hospitality, transport and specialist services. The V&A Waterfront's new R230-million Quay 7 Superyacht Marina is expected to open in November and will cater specifically to this high-value market. Unlike conventional marina developments, the V&A Waterfront's Superyacht Marina is designed for dual use. In-season, the eight berths will accommodate superyachts, which typically carry elite tourists. In the off-season, the basin will support the commissioning and export staging for Cape Town's globally recognised catamaran manufacturers, including Robertson and Caine, Two Oceans Marine and Balance Catamarans. Cruise Tourism Growing A new economic impact study by StratEcon shared at Cruise Cape Town's Annual Review 2026 shows that cruise tourism contributed a cumulative R5.7-billion to the Western Cape's GDP over the past four cruise seasons. The 2025/26 cruise season saw Cape Town, and the Western Cape, welcome 64 vessels, 106 240 passengers and 37 200 crew members. Despite receiving cancellations during the season, owing to the ongoing conflict in the Middle East, international passenger numbers remained above 2022/23 and 2023/24 levels. The Port of Cape Town was also named Africa's Leading Cruise Port at the World Travel Awards for the fourth consecutive year. Key findings from the economic impact study highlighted that, over the last four cruise seasons, cruise ship arrivals supported 7 875 yearly full-time equivalent jobs; generated R2.76-billion in household income; and contributed R791-million to the national fiscus. In the 2025/26 season alone cruise ship arrivals contributed R1.35-billion to the Western Cape's GDP; ensured R1.47-billion in total industry expenditure; and supported 1 700 full-time equivalent jobs in the Western Cape. The study also found that the 2025/26 season recorded the second-highest number of embarking and disembarking passengers to date. World cruises remained the largest contributor to GDP, while ship calls at the province's smaller harbours, including Mossel Bay, Hermanus and Saldanha Bay, generated a further R11.2-million in visitor spending. Looking ahead, Wesgro is focused on attracting new, strategic cruise investment and strengthening Southern Africa's shared tourism offering. (Wesgro is the tourism, trade, and investment promotion agency for Cape Town and the Western Cape.) Central to this is the Southern Africa Cruise Alliance, established with partners in Namibia, Angola, St Helena and the Seychelles to develop multi-country itineraries, attract new cruise lines and extend the benefits of cruise tourism to more coastal communities. Cruise Cape Town has also announced luxury rail operator Rovos Rail as its latest private sector partner. This public-private partnership will aim to strengthen the connection between cruise tourism and premium land-based travel experiences across South Africa, thereby supporting regional tourism growth. Cruise Cape Town aims to grow the cruise sector and brings together Wesgro, the Western Cape government, the City of Cape Town, Cape Town Tourism, Transnet National Ports Authority, the South African Maritime Safety Authority, the V&A Waterfront, KASADA Asset Management Group (owners of the Cape Grace and Pullman Cape Town hotels) and Rovos Rail.

South Africa's logistics cost burden is at its highest level in more than two decades, with a new analysis projecting that the cost of moving goods through the country will reach a record R1.16-trillion in 2026, equivalent to 14.6% of GDP. These findings are contained in the 2026 edition of the 'State of Logistics' report, produced by consultative research firm the GAIN Group, which has been analysing South Africa's logistics costs since 2023. The study, which estimates that domestic logistics costs first breached the R1-trillion level last year, points to a steady rise in the cost burden since the Covid-related disruptions of 2020 and 2021. However, the 2026 forecast is also well up on the R534-billion costs calculated for ten years ago, which was equivalent to 11.2% of GDP. Transport is forecast to account for 59% of total logistics expenditure this year, or some R683-billion, with road-freight costs having risen sharply year-on-year partly in response to surging diesel prices. Road rates have, thus, also diverged from rail rates and consumer price inflation, where the increases are forecast to be more moderate. The other costs included in the 2026 figure relate to inventory carrying (R191-billion), warehousing (R152-billion), and management and administration (R130-billion). Releasing the report's findings in Johannesburg, GAIN Group director Zane Simpson said the fact that logistics costs had breached the R1-trillion level underlined the transport-intensity of an economy characterised by large spatial separations between major economic centres and the ports. However, he said it also brought to the fore the need to focus urgently on reducing unnecessary costs through improved system performance. The first priority, Simpson argued, should be to ensure that freight was transported using the most appropriate mode. "Long-distance, high-volume and rail-friendly freight should be moved from road to rail where rail can offer a reliable and more economical service, while road transport should continue serving the freight markets and distribution functions for which it is best suited." In addition, modal choices could be enhanced through careful spatial planning, the development of inland terminals, and consolidation hubs or freight villages close to points of production and consumption to reduce transport distances. The report argues that, had all these three elements been implemented in 2026, there could have been cost savings of up to R150-billion. Besides better modal choices, the research indicates that cost could be avoided through the effective utilisation of available logistics capacity and the introduction of efficiencies to reduce the cost of each tonne-kilometre. Meanwhile, the report also provides evidence that improvements in freight rail are beginning to reduce the economic consequences of its recent underperformance. These costs fell, Simpson said, from an estimated R410.7-billion in 2022 to R180.8-billion in 2025. The remaining burden was still equivalent to R495-million a day, but far below the more that R1-billion a day calculated at the height of the country's rail and ports crises of 2022. Rail freight volumes have also recovered from about 149.5-million tonnes in 2022/23 to 167.9-million tonnes in 2025/26, but remain well below the 250-million-tonne target set for rail by the end of the decade. The Gain Group's Professor Jan Havenga said that closing the gap would require a major recovery in the volumes of general freight moved by rail. These continued to contract while the heavy-haul commodity lines recovered. "Although the recovery of established bulk commodity corridors for iron-ore and coal remains important, South Africa's longer-term freight requirements cannot be met without rebuilding competitive general freight rail services," Havenga said, adding that priority attention should be given to restoring the rail service on the corridors linking Gauteng with KwaZulu-Natal and the Western Cape. He argued t...

The EU's new ambassador to South Africa, Kristian Schmidt, sees potential for South Africa to further integrate its industrial supply chains with Europe in a way that supports South Africa's ambition to add value to its minerals ahead of export and the energy transitions under way in both territories. Schmidt says that the 27-country bloc needs minerals for batteries and electrification that it largely lacks domestically and is actively seeking new sources of supply to reduce its dependency on China, which has imposed export restrictions on some raw materials. South Africa is the only country in Africa with which the EU has a strategic partnership, and the ambassador believes the relationship could be leveraged to bolster domestic mineral processing on the back of dependable market demand from EU companies. Similar models have for decades been successfully deployed in other sectors, such as the automotive industry, whereby European manufacturers have produced cars in South Africa for the domestic market and for export, including into the EU. The Global Gateway initiative, the EU's strategy for mobilising investment in infrastructure and industry in partner countries, could be used to facilitate technology transfer in support of minerals beneficiation and to help investors secure lower-cost capital. The EU announced a nearly €12-billion package for South Africa under the initiative in 2025. Schmidt also sees significant potential for the EU and South Africa to cooperate in other areas linked to the energy transition, including the production of sustainable aviation fuels in South Africa for use by European airlines and the production of cleaner bunkering fuels for the rising number of marine vessels now rounding the Cape to avoid routes prone to conflict or piracy. The ambassador says an upscaled relationship with South Africa and other African countries on critical minerals and the broader energy transition is premised on cooperation rather than competition and will respect South Africa's policy of non-alignment. This includes the "reality" of South Africa's membership of the Brics bloc and the country's growing trade relations with China, which recently overtook Europe as South Africa's largest trading partner. However, the EU remains South Africa's largest source of foreign direct investment, while South Africa's trade with the EU is relatively diversified and includes manufactured products alongside mineral and agricultural exports. According to the European Commission, two-way goods trade totalled €46-billion in 2025, with transport equipment accounting for €9.5-billion, or 21%, of the total. EU investment stock in South Africa stood at €40.4-billion in 2024. Schmidt, who is Danish, also stresses that Europe's partnership with South Africa extends to a broader agreement on principles and values, including the need for multilateralism and a rules-based international order. He also insists the EU's approach to South Africa will continue to be framed around dialogue and cooperation rather than coercion and is optimistic that the relationship will withstand any adverse short-term political developments in the EU or South Africa. "We have long ago moved away from the donor-recipient relationship with South Africa . . . we are offering a partnership of mutual benefits, and that should survive, whether governments move left or right."

Engineering News editor Terence Creamer discusses the highlights from Finance Minister Enoch Godongwana's 2026 Medium-Term Budget Policy Statement, including R10-billion in fuel-levy relief and material improvements to the deficit, debt and revenue performance. The country's econ

Finance Minister Enoch Godongwana used the occasion of the 2026 Medium-Term Budget Policy Statement (MTBPS) to release draft legislation for public comment aimed at integrating a principles-based fiscal anchor as a requirement for future administrations, but without introducing a rigid numerical rule. Speaking to lawmakers against the backdrop of a narrowing in the main Budget deficit and a stabilisation in the debt-to-GDP ratio, Godongwana argued that the "hard-won gains we have made must be protected". Debt had stabilised at 78.4% of GDP and was forecast to decline further, the main budget deficit of 3.7% of GDP in the current year was forecast to decline to 2.5% in 2029/30, and the primary surplus is expected to reach 1.7% of GDP in 2026/27. The National Treasury has also made a R70.8-billion upward revision to its main budget revenue estimates over the next two years on the back of stronger-than-expected tax revenue projections. "That is why this Medium-Term Budget Policy Statement proposes a new set of fiscal guardrails to strengthen discipline, improve accountability and support responsible budgeting into the future," the Minister said. The proposed legislation would seek to prevent any return to the fiscal deterioration that characterised the period from the global financial crisis to the early 2020s. The fiscal anchor formed part of what the National Treasury described as the most extensive reconfiguration of the public finance system since 1999. Director-general Dr Duncan Pieterse said the draft legislation aimed at giving effect to the fiscal-sustainability standard had been approved for release by Cabinet. It included proposed amendments to the Public Finance Management Act (PFMA) of 1999, as well as the legislation governing Money Bill procedures and the Financial and Fiscal Commission, which would be expected to assess future fiscal plans. The instrument would seek to embed prudent management of the public finances across administrations by requiring the incoming Cabinet assembled following a general election to approve a fiscal plan that sets out its objectives, strategy, main assumptions and risks. Government would be required to explain how its policy choices supported fiscal sustainability and report against the plan through the Budget Review and MTBPS, including reasons for and responses to any material departures. "The framework establishes binding duties to disclose, assess and explain. Each government will retain responsibility for its fiscal choices," the MTBPS states. However, Godongwana stressed that it would not impose a strict numerical rule so as to "preserve flexibility in changing economic conditions while strengthening transparency, accountability and fiscal discipline". "Most importantly, it helps to ensure that developmental priorities and constitutional obligations are pursued at a pace that public finances can sustain," he added. Under the framework, fiscal sustainability would be defined as the ability of the State, under reasonable macroeconomic and fiscal assumptions, to meet its present and future expenditure and debt-service obligations and to manage its fiscal risks. And doing so without undermining macroeconomic stability or requiring abrupt corrections to revenue or expenditure. The fiscal sustainability standard would be introduced alongside additional updates to modernise the PFMA, drawing on two decades of experience and including lessons from the State Capture Commission. The changes would clarify the duties of accounting officers and boards, strengthen action on financial misconduct, reinforce governance and accountability in public entities, and improve support for distressed entities.

Creecy stresses role of integrated freight rail in Africa's growth There is a need to grow intra-African trade volumes, which requires an efficient, integrated freight logistics system with rail serving as its backbone, Transport Minister Barbara Creecy has said. Speaking on the first day of the Southern African Railways Association (SARA) Rail Conference and Exhibition, which is being held in Sandton this week, she noted that the growth of rail logistics in the Southern African Development Community was being driven by far-reaching regulatory reform, significant private-sector investment and cross-border infrastructure initiatives. Creecy emphasised that Southern Africa needed to build resilience and plan for an uncertain future, in light of major new developments in the geopolitical order and multiple economic shocks threatening to undo the gains achieved in the region. She highlighted that the Africa Union's (AU's) Africa Agenda 2063 and the African Continental Free Trade Area provided the largest trade integration opportunity, with the opportunity to double current intercontinental trade volumes. Creecy averred that the measures to engender this target the region's historic challenges of fragmented national systems, under-capacitated operations and structural reliance on road transport. Speakers pointed out that projects, such as the Lobito Corridor and the Nacala Logistics Corridor, were moving from conceptualisation to implementation. "Increased rail utilisation, particularly in the context of elevated diesel prices, can ensure that freight rail more effectively competes with trucking," Creecy acclaimed. She said that, in South Africa, State-owned Transnet was working on advancing rail corridor developments with neighbouring countries Eswatini and Botswana. "The AU's 2016/17 resolution to ensure that South Africa serves as a hub for rail manufacturing on the continent is already being implemented. We are committed to honouring that mandate through the sustained implementation of sector reforms and targeted investments," the Minister assured delegates. She highlighted the importance of the Gibela rail manufacturing plant, in Gauteng, showcasing local industrial capacity, with this said to be contributing significantly to the growth of Africa's rail manufacturing through ongoing production and skills development. "Both the Passenger Rail Agency of South Africa (PRASA) and Transnet are committed to supplying the African market with surplus rolling stock to meet demand in countries that are seeking to expand their networks and enhance their rail capacity," she highlighted. With South Africa committed to to re-establishing rail as the backbone of the country's logistics and passenger system, milestones had been met since last year's conference, Creecy averred. She informed that the Department of Transport had now published its fourth iteration of its Network Statement, with 11 private operators approved to access the Transnet rail network from April next year. "The fourth iteration of the Network Statement aims to give certainty that will allow these companies to reach financial close and acquire the necessary rolling stock to begin operations," Creecy averred. She said it was hoped that, over the course of next year, these companies would be able to add a further 24-million tonnes of freight to Transnet's current network, helping to achieve the goal of moving 250-million tonnes of freight by the end of this political term. "As a sign of the healthy demand for third-party access and private-sector investment in our rail network, private sector participation projects situated at the Coega manganese export corridor, the Richards Bay dry bulk terminal and the Gauteng Durban container corridor will go out to market during the course of this financial year, with two already out," Creecy highlighted. She also noted a milestone this year as being the formal institutionalising of the transport economic regulator, which was expecte...

While many of South Africa's water challenges could be fixed by resolving the high level of losses in the water system, risks remain nonetheless, as South Africa is a water-scarce country, and climate change and growth, besides others, will continue to impact supply. Raw water supply and demand in South Africa are roughly in sync, but there continue to be localised water supply deficits, delegates heard at a Talbot seminar discussing South Africa's water landscape under the theme 'Strengthening water security and business continuity for industry and mining'. "Water is a very local function. There is no national water grid. We have over 1 000 different water systems, most of which are not interconnected in South Africa, and the reasons why you might have water shortages in one area differ very much from why you might have water shortages in another area," said Department of Water and Sanitation (DWS) director-general Dr Sean Phillips. Water deficits in Nelson Mandela Bay, from 2015 to 2023, and in Cape Town, which faced a Day Zero scenario from 2016 to 2018, were caused by droughts, while the challenges with water supply and the availability of water in Gauteng and eThekwini had nothing to do with drought, he explained. Gauteng is currently facing a deficit owing to increased demand, high levels of leaks and a lack of municipal investment in water and sanitation infrastructure, with nonrevenue water at unsustainable levels of 47%. "One could say that there is a shortage of water for Gauteng because the municipalities are asking for more water than we allow Rand Water to supply them through its abstraction from the Vaal river system. But the other side of that coin is the very high level of losses in the municipal distribution systems." Similarly, the water deficit in eThekwini are caused by a delay in the uMkhomazi water project, rapid increase in demand and high leaks, as well as lack of municipal investment in water and sanitation infrastructure, leading to nonrevenue water of 60%. He questioned the options of building more dams just to have half the water lost through leaks in the municipal distribution systems, or ensuring water security by reducing the leaks in the water distribution systems. This is one of the potential risks to South Africa's water security in the future, should municipal water distribution systems continue to deteriorate and the percentage of losses in those systems continue to increase. In addition, the average daily consumption of water per capita in South Africa is 218 litres, with Gauteng using more than 250 litres, well above the international average of 173 litres. With South Africa being one of the 30 most water-scarce countries in the world, this is not sustainable. "We have been singing this song for decades, but unfortunately, it is not getting better. In fact, it is probably getting worse. One of the reasons why it is probably getting worse is because of the high level of leaks in the municipal distribution systems," Phillips continued. "We are in a serious crisis. If you look at the most recent results by the Blue, Green and No Drop reports, 107 out of 144 water services authorities rated critical or poor in terms of the performance of their drinking water or wastewater systems. That means that 74% of municipalities are in a critical or poor state of performance with regard to water services." In addition to this, water availability could deteriorate as supply contracts and demand escalates owing to economic growth, population growth, urbanisation, degradation of wetlands and the impacts of climate change. "There are many risks on the horizon. We all know about the risks brought about by climate change, and we are not sure the extent to which that is going to have an impact. It could result in much more intense droughts in future, as well as much more intense flooding, and the intense droughts in particular could have severe implications for water security in South Africa," Phillips comme...

Engineering News editor Terence Creamer discusses processes launched by Eskom to prequalify potential strategic partners for renewables, battery storage and pumped-hydro projects in its portfolio, as well as what this could mean for Eskom Green.

outh Africa intends to phase out semi-knockdown (SKD) vehicle assembly from within its auto sector, says Minister of Trade, Industry and Competition Parks Tau, delivering a speech on behalf of President Cyril Ramaphosa. Speaking at the South African Auto Week, held in Durban this week, he said government will no longer provide policy support for any new SKD facilities in the country. Companies such as BAIC and Mahindra have SKD facilities in South Africa. The country also has six completely knockdown (CKD) manufacturers, with Chery set to join the ranks as number seven. The decision on SKD assembly comes as government is busy reviewing the second iteration of its Automotive Production Development Programme (APDP 2), in consultation with naamsa | the Automotive Business Council, the National Association of Automotive and Component and Allied Manufacturers (Naacam) and organised labour. Tau explained that government's plans around SKD assembly would exclude medium and heavy trucks. "We will work to strengthen the legal definitions around what we determine as CKD manufacturing." CKD manufacturing have a high local parts content, while SKD have a much lower local parts content. With SKD assembly the major parts typically arrive pre-assembled (such as the painted body, engine and cockpit), and local workers perform only the final steps like fitting wheels, seats, bumpers and/or electronics. "We have agreed that the strategic competitiveness of South Africa's ladder-frame light commercial vehicle [bakkie] segment warrants formal investigation," added Tau. "There was also alignment that any additional protection should be accompanied by reciprocal commitments relating to production, localisation, employment, transformation, exports and investment. "I will be instructing the International Trade Administration Commission of South Africa (Itac) to undertake this investigation to reach a final determination on the matter," noted Tau. Itac provides technical advice to the Department of Trade, Industry and Competition (dtic) on fair trade "through the efficient and effective administration of trade instruments". These include import duties. During his address, Tau acknowledged that the local auto sector currently faced the greatest turning point in its existence, with the way that vehicles are powered, built, owned and used all changing at once. He also indicated that the manufacturing of new-energy vehicles (NEVs – hybrids and battery electric vehicles), South Africa's Critical Minerals Beneficiation Strategy. as well as the country's commitment to carbon emission targets, were all key focus areas in placing the local sector on a path to success through the APDP review. "If we do not build the vehicles that markets such as Europe and the UK will buy, we will lose those [export] markets, and with them our plants and our jobs. "At home, in the first seven months of this year, South Africans bought almost as many NEVs as in the whole of last year." "The automotive industry is where the beneficiation strategy meets our reindustrialisation programme," added Tau. "Every NEV sold today will one day reach the end of its life, and so will its battery. "Government has begun work on an end-of-life vehicle policy, as part of the decarbonisation pathway in our Industrial Development Strategy. "Recycling batteries and giving them a second life is a new industry in its own right. South Africa intends to build it from the start."

Transnet Port Terminals (TPT), which was central to the broader Transnet Group's first and largest private sector participation (PSP) transaction to date, is actively pursuing two more partnership prospects and laying the groundwork for several others as part of moves to accelerate investment and improve efficiency. CEO Jabu Mdaki tells Engineering News that TPT has fully integrated the PSP model into its ongoing turnaround programme, launched in 2023 amid a sharp deterioration in performance, epitomised by the historically high vessel backlogs at Durban in October 2023 and the fire at the Richards Bay Bulk Terminal that damaged part of a conveyor belt servicing the woodchip export industry. Internally, that turnaround has involved a significant recapitalisation of key equipment such as ship-to-shore cranes, rubber-tyred gantries and mobile harbour cranes. It has also been facilitated by a change in the procurement model, which has involved TPT entering into ten-year partnership contracts with original equipment manufacturers such as Liebherr and Metso to standardise equipment across its operations in an effort to improve availability, as well as gain access to the latest technology, spares and servicing. The division is currently investing about R4-billion a year in new equipment, which has already helped to deliver significant improvements across a number of its 15 sea-cargo terminals. During the 2026 financial year, TPT reported a rise in container, automotive and bulk volumes and increased its revenue by 6%, contributing some R20.6-billion to overall group revenue of R88.6-billion. It also made a positive contribution of R12.9 billion to the bigger Transnet Group's return to a R4.6-billion profit in 2026, following a loss of R1.9-billion in the previous financial year; a recovery that was bolstered by proceeds from a R11.5-billion PSP transaction involving the Durban Container Terminal Pier 2. The transaction saw International Container Terminal Services Incorporated (ICTSI), of the Philippines, assume operational control at what is now known as the Durban Gateway Terminal (DGT), in which TPT still has a majority stake of 50% plus one share. Mdaki, who sits on the DGT board, acknowledges recent operational disruptions at what is the country's largest container terminal, resulting in vessel delays and logistics backlogs. The problems have been linked largely to the launch of the Navis N4 terminal operating system, with TPT seeking to alleviate the disruptions by rerouting traffic to some of the container terminals it still operates, including the Durban Container Terminal Pier 1. However, Mdaki tells Engineering News that he remains optimistic that the problems will be addressed and that DGT's efficiency will begin to improve in line with the expectations outlined ahead of the 25-year partnership with ICTSI. "DGT is operating in a new environment, and it has been less than 12 months. There's a lot of adjustments, a lot of understanding of the landscape involved and, like anything new, there are bound to be teething problems. Our biggest breakthroughs as TPT have certainly come from engagements and, perhaps, it may be an avenue for DGT to consider going forward," Mdaki adds. DGT Lessons He adds that valuable lessons have emerged from the DGT transaction, which was delayed for years by a legal challenge, and says TPT intends to apply these to future partnership transactions. These could take on various forms, including deals in which TPT retains operational control, and will be pursued to support either a step-change in terminal volumes, or efforts to return underperforming terminals to profitability. Mdaki tells Engineering News that TPT has classified seven of its terminals to being in a strong position and where the focus currently is on sustaining growth and investing in equipment availability and reliability. These terminals include the Durban Container Terminal Pier 1, Durban Car Terminal, East London Car Terminal, P...

Eskom Holdings has initiated a two-stage process to identify and select a possible strategic partner to implement the 1.5 GW Tubatse Pumped Storage Scheme in Limpopo alongside Eskom Green, which is in the process of being incorporated as a new Eskom subsidiary. The State-owned entity has issued a request for qualification (RFQ) document through which it aims to qualify experienced and financially capable organisations that will be invited to participate in a subsequent request for proposal (RFP) stage. Should the project proceed, it would be the biggest pumped-storage scheme yet undertaken in South Africa and could add some 21 GWh of energy storage through four reversible pump-turbine units. Following significant delays and budget overruns, Eskom commissioned the 1.33 GW Ingula scheme in the Drakensberg in 2017, increasing the capacity of its pumped-storage fleet to over 2.7 GW across Ingula, Drakensberg and Palmiet. Located near Roossenekal in Limpopo province, the proposed Tubatse project has been a feature of Eskom's project pipeline for decades and has been classified by Infrastructure South Africa as one of the country's top 12 Strategic Integrated Projects. Eskom says the required land is secured, that an environmental authorisation has been granted, and that the Department of Water and Sanitation has confirmed water availability from the De Hoop dam. Grid connection and technical studies have also advanced, alongside access-road designs. Any partner selected after the RFP stage, meanwhile, will be expected to develop and structure a bankable investment case for Tubatse, which could be housed in a ring-fenced special purpose vehicle. Eskom is, therefore, aiming to select a partner with the ability to finance and deliver a bankable project, with the detailed partnership, ownership and commercial terms to be set out in the RFP issued to qualifying respondents. "By combining Eskom's development experience with private-sector expertise and investment, we aim to unlock the full potential of this project while supporting economic growth, localisation and skills development," group executive for renewables Rivoningo Mnisi says. Eskom indicates that several offtake avenues are possible and will be explored. However, it indicates that its preferred route is to have a pumped-storage allocation under the Integrated Resource Plan of 2025, followed by a Ministerial determination under Section 34 of the Electricity Regulation Act, which would support a long-term power purchase or capacity agreement with the National Transmission Company South Africa as the buyer. Alternatively, the offtake model might be based on bilateral offtake and wheeling arrangements with private buyers. Tubatse's development is described as supportive of a higher penetration of variable renewable energy into the South African electricity system, as it will be able to generate at full output for up to 14 hours and complement shorter generation storage options such as battery energy storage systems (BESS). "As South Africa advances its energy transition, long-duration storage will be essential to maintaining a reliable and resilient power system," Eskom Holdings CEO Dan Marokane said in a statement confirming the RFQ. "Tubatse will provide the flexibility needed to integrate increasing volumes of renewable energy while strengthening grid stability and security of supply." The deadline for responses to the RFQ has been set for 10:00 on November 30, and a virtual, non-compulsory clarification meeting will be held at 11:00 on October 29. The Tubatse RFQ follows on from an initiative by Eskom Holdings to identify and qualify experienced partners for up to 6 GW of utility-scale renewable-energy and BESS projects, also to be implemented by Eskom Green, once it is fully incorporated. Through that separate RFQ process, Eskom aims to identify entities for the establishment of a panel of pre-qualified co-development and co-investment partners for what Eskom terms the 'P...

ARC Ride has launched its Panther electric motorcycle in South Africa, with the roll-out starting in Gauteng and the Western Cape. The Kenya-based company believes the purpose-built vehicle and its associated battery-swapping network will boost the take-home earnings of commercial last-mile riders – hit by high fuel prices and maintenance costs – by up to 20%. ARC Ride is confident that it can achieve this through its battery-as-a-service (BaaS) model. Rather than purchasing batteries or charging them at home, drivers exchange depleted batteries for fully charged units at dedicated swap stations and ARC hubs. With petrol at roughly R27 a litre (September's price), the costs for a conventional 125 cc commercial motorcycle to travel 100 km comes to more than R59 in fuel alone. Within the ARC ecosystem, a fully depleted battery costs R50 to swap for up to 110 km of range, working out to roughly R45.45 per 100 km, which is about 23% less, says ARC Ride South Africa (SA). Partially depleted batteries are also only charged on a pro-rata basis according to the energy used, much like filling up a partially empty fuel tank. ARC Ride SA's internal fleet operating data puts the combined effect of fuel savings, combined with an up to 40% reduction in maintenance expenses, at up to 20% of a rider's total weekly operational expenses. "There is a human on that bike doing a tough job every day," says ARC Ride SA MD Mikael Cloete. "We engineered the Panther specifically for durability, safety and operational efficiency, ensuring the unit-economics allow riders to increase their net weekly earnings." The Panther is priced from R22 500 (including VAT), and, with rental and lease options available from ARC Ride fleet partners in Gauteng and the Western Cape, ARC Ride SA believes acquiring an electric Panther will cost no more than a conventional petrol motorcycle. Equipped with a 5 kW continuous-output motor that delivers up to 10 kW of peak power when required, ARC Ride SA also believes that the Panther can handle both the steep urban inclines and heavy loads often seen in South Africa. The bike's heavy-duty chassis is built to support a payload of up to 292 kg, while standard safety features include hydraulic disc brakes, a combined braking system and full LED lighting. Beyond rider profits, the Panther also addresses the environmental impact of traditional delivery fleets. Conventional petrol delivery motorcycles emit roughly 50.5 g of CO2 per kilometre, while electric motorcycles produce zero tailpipe emissions. Electric motorcycles also operate almost silently, eliminating the noise of traditional 125 cc engines. From Kenya to SA "ARC Ride was established in Kenya, which remains our most mature market," Cloete tells Engineering News. "South Africa represents the expansion of the ARC Ride model into a new market, alongside our broader growth across Africa." Cloete adds that the Panther was designed and developed by ARC Ride specifically to integrate with its battery-technology and swapping ecosystem. "We source components through established global suppliers, predominantly in China, and consolidate production through our manufacturing partner before the motorcycles are shipped to South Africa for final assembly at our Cape Town facility at Paarden Eiland. "While China forms an important part of our supply chain, the Panther is not an off-the-shelf Chinese motorcycle that we import, assemble and rebrand." "The easiest way to understand the ARC Ride ecosystem is through three interconnected elements: the vehicle platform, currently the Panther (with additional vehicle types to follow), the energy infrastructure, and the technology platform," adds Cloete. "We sell the Panther without transferring ownership of the batteries to the customer. "ARC retains ownership of the batteries and riders access energy through our battery-swapping network." Cloete adds that the Western Cape government supported ARC Ride in navigating local regulatory approva...

South African automotive components manufacturer Malben Engineering has signed an agreement with Egypt's Elaraby Group, opening the way for the possible creation of a new venture to manufacture automotive components in the North African country. The memorandum of understanding was initialled on the sidelines of the Africa Automotive Investment Forum, which took place in Alamein in early October and was attended by key African policymakers, original-equipment manufacturers (OEMs), investors, financiers and industrialists. The agreement, which follows initial meetings facilitated by the African Association of Automotive Manufacturers, proposes to combine Malben Engineering's established automotive manufacturing expertise with Elaraby Group's extensive domestic industrial capability. Established in Nigel in 1974, Malben Engineering has more than five decades of experience in supplying stampings and complex welded assemblies to leading OEMs operating in South Africa, including Ford Motor Company, BMW, Fiat, Alfa Romeo and Volkswagen. The highly diversified Elaraby Group, meanwhile, operates through 16 companies spanning commercial, industrial, medical and service activities and employs more than 36 000 people in Egypt and the Middle East. "Partnering with an established Egyptian industrial group could materially shorten Malben's route to market and provide access to existing manufacturing capacity, people, administrative systems, procurement capability and local supplier relationships, avoiding many of the challenges associated with a greenfield startup," Malben Engineering operational director Luca Smargiasso explains. The Elaraby Group will contribute its established Egyptian industrial footprint, local operating capability, market knowledge and relationships. The fact that both companies are family-owned businesses has also been cited as a factor in facilitating the relationship, with the Elaraby Group involving third-generation family members and Malben Engineering remaining a second-generation family enterprise, 52 years after its founding. "As the partnership develops, the parties intend to explore joint investment opportunities in new facilities and capabilities serving Egypt's automotive industry, with the potential to support wider regional supply opportunities," Smargiasso explains. Technical director Marco Smargiasso adds that the proposed partnership is also aligned with Egypt's National Automotive Industry Development Programme, which is designed to localise and deepen automotive manufacturing and develop the supporting components industry. The framework links incentives to measurable outcomes, including local content, production volumes, investment and exports, and has some parallels with South Africa's Automotive Production Development Programme. There is also a longer-term opportunity to develop competitive African automotive supply chains through which components and manufacturing capability can increasingly be sourced within the continent rather than imported from outside Africa. "As that capability develops, the African Continental Free Trade Agreement creates the potential to serve OEMs and automotive markets across the continent, subject to the applicable rules of origin and market-access requirements," Smargiasso adds. However, commercial director Marius Schafer says the immediate priority is to establish a competitive and sustainable operation in Egypt.

Engineering News editor Terence Creamer discusses the publication of a new Ministerial Determination to allow for the public procurement of 5 GW of gas-to-power and 4.6 GW of battery storage, as well as the significance of this development.

Steel and Engineering Industries Federation of Southern Africa (SEIFSA) president Elias Monage reports that it is aiming to speedily conclude yet another multiyear wage agreement with representative labour unions in the sector during upcoming collective bargaining in 2027. Monage, who served as Seifsa president during the 2024 wage negotiations, was recently re-elected to the role, performed since 2025 by Mervyn Naidoo, who will remain as Seifsa's first VP. Addressing members in Ekurhuleni on Thursday, Monage indicated that Seifsa's goal was to conclude an unprecedented five-year settlement with representative unions, having concluded a three-year deal in 2024. That 2024-2027 agreement was conducted through the Metal and Engineering Industries Bargaining Council and was also notable for the speed at which it was finalised. The settlement was reached following only three meetings and in the absence of any industrial action. It was signed by several unions, including the large National Union of Metalworkers of South Africa, as well as Seifsa-affiliated employer associations that collectively employ about 150 000 people. However, some unions and employer associations in the industry refused to sign the agreement, citing various concerns. Monage said he and the new Seifsa board had agreed that a five-year settlement should be pursued in a bid to create the stability needed to support the country's reindustrialisation. LACK OF SUPPORT However, he also used his address to criticise what he saw as a lack of coordination from government in supporting the stated policy goal of reindustrialising South Africa. Monage was especially critical of Trade, Industry and Competition Minister Parks Tau, who he said had not engaged adequately with the metals and engineering industry on the approach that should be adopted to support the country's reindustrialisation. "We are an authoritative voice of industry, and we want to talk about reindustrialisation," he said, arguing that this required more interactions with the line Ministry than was currently the case. Seifsa, Monage noted, had managed to meet more regularly with President Cyril Ramaphosa in the recent past than with Tau, leading him to pose the following provocative question: "Do we really have a Minister of Trade and Industry in this country?" Seifsa's outgoing president, Naidoo, struck a more diplomatic tone, describing industrialisation as a deliberate policy choice that had to be supported by policy actions. The two central priorities for industrialisation, he added, were to grow demand, including by leveraging procurement to support domestic industry, and reducing production costs caused by rising electricity tariffs, inefficient logistics, unstable municipal services, and regulatory burdens. Naidoo said there was currently a gap between government's stated commitment to industrialise and the practical experience of manufacturing companies, especially in the area of levering industrialisation through procurement.