Unlocking the NEV Value Chain for Africa
The global community, both developed and developing countries, faces the challenge of transitioning to low-carbon economies for future generations. The climate crisis threatens our environment, economies, and livelihoods. Many countries, including South Africa, have set ambitious targets and committed to this transition. Technologies like green hydrogen, electric vehicles, renewable energy, and bio and synthetic products are essential for decarbonisation and economic transformation, but they need to be scaled effectively to have an impact (the environmental transition).
The NEV (New Energy Vehicle) value chain offers South Africa a significant opportunity to transform its automotive and transport sectors. This transformation involves two main aspects: first, shifting transportation modes for people, goods, and services to low- or zero-emission vehicles (the car parc transition) and second transitioning from manufacturing internal combustion engine vehicles to producing electric vehicles (the production supply chain transition).
Achieving this transition requires changes in policies, regulations, government support, including incentives, and education/skills. Additionally, it necessitates collaboration with various stakeholders in the ecosystem, such as private sector companies and local governments (the country transition).
Supporting the broader ecosystem and addressing financing gaps will empower businesses and start-ups to create employment and generate value, fostering a collaborative environment for innovation (the innovation and ecosystem transition).
By doing so, we can drive the adoption and adaptation of new services and products tailored to our local environment.
IDC NEV Transition and Localisation Study
With the rise of NEVs taking place on a global scale, the IDC has undertaken a full-scale research and insights project aimed at unpacking every aspect of this growing sector and its potential in the African context, with a focus on specific use cases. As part of our commitment to be at the forefront of identifying and exploring the vast opportunities of emerging business trends, the IDC is proud to present a suite of reports reviewing the various elements of this market and its potential contribution to the South Africa and continental economy.
The aim of the study was to identify opportunities in the NEV market that fall outside of the mainstream Original Equipment Manufacturer (OEM) supply chain, i.e. passenger vehicles. The study objective included identifying opportunities in adjacent markets driven to adopt the electrification of transport due to cost of ownership (TCO), environmental, social and governance factors such as shareholder value and a just transition within South Africa and Africa.
The study was divided into two phases:
PHASE 1:
Situational Analysis Report: a comprehensive review of relevant literature and analysis of the NEV segments in South Africa and Rest of Africa.
Stakeholder Engagement with key role players to form an understanding of the industry’s readiness for NEV migration.
The Strategy and Investment Report captures NEV potential to substantiate emerging industrial strategies and ranks the identified opportunities as catalysts for developing the ecosystem in South Africa and across Africa.
The Battery Value Chain and Assessment Report evaluated the ‘Battery Value Chain’ within the NEV ecosystem in South Africa and Africa and models the cost of producing midstream battery materials for supply into global value chains.
Economic Modelling Tool developed to model the impact of each segment and visually analysed the study via a dashboard interface to see the potential development impact – Jobs, GDP and CO2 emissions. An Economic Modelling Handbook was developed to serve as a guide on how to use the tool.
Trade, Policy and Conformity Assessment, which provides a benchmark for country-to-country comparison and support measures to accelerate the specific segments of the ecosystem.
PHASE 2:
Scoping Report pre-feasibility study on the highest-ranked opportunity. The outcomes of the scoping report should guide various stakeholders in supporting research and the development of economically viable projects that yield positive economic and developmental benefits for South Africa, the SADC, and Africa.
Scoping Report pre-feasibility study on the highest-ranked opportunity. The outcomes of the scoping report should guide various stakeholders in supporting research and the development of economically viable projects that yield positive economic and developmental benefits for South Africa, the SADC, and Africa.
The full suite of reports conducted as part of this study are shown below
NEV Landscape Overview
New Energy Vehicles (NEV) are seen as an important step towards achieving global climate change objectives. This study has undertaken a comprehensive review of the relevant literature as it relates to the current NEV industry globally, for South Africa, and the Rest of Africa (RoA), whilst identifying key role players and stakeholders, and highlighting current and emerging gaps, and opportunities, in the NEV market
NEV Landscape Overview
New Energy Vehicles (NEV) are seen as an important step towards achieving global climate change objectives. This study has undertaken a comprehensive review of the relevant literature as it relates to the current NEV industry globally, for South Africa, and the Rest of Africa (RoA), whilst identifying key role players and stakeholders, and highlighting current and emerging gaps, and opportunities, in the NEV market
Micro-Mobility Report
The future of mobility will see a modal shift from cars and trucks to lighter, smaller, more specialised and environmentally friendly alternatives; this means lighter and smaller-sized electric vehicles which have a more favourable mass-to-payload ratio. Micro-mobility transportation involves the use of lightweight vehicles, typically two- to three-wheelers with limited speed (less than 25km/h) like bicycles or electric scooters. These vehicles can be conveniently borrowed through self-service systems, allowing individuals to hire them for short-term use.
Micro-Mobility Report
The future of mobility will see a modal shift from cars and trucks to lighter, smaller, more specialised and environmentally friendly alternatives; this means lighter and smaller-sized electric vehicles which have a more favourable mass-to-payload ratio. Micro-mobility transportation involves the use of lightweight vehicles, typically two- to three-wheelers with limited speed (less than 25km/h) like bicycles or electric scooters. These vehicles can be conveniently borrowed through self-service systems, allowing individuals to hire them for short-term use.
Public Transport Report
A review of the application of NEV for Public Transport with a focus on buses and mini–bus taxis is undertaken. This report draws on case studies in South Africa, Kenya, Ghana, Rwanda and Zimbabwe and looks at existing capabilities for assembly opportunities.
Public Transport Report
A review of the application of NEV for Public Transport with a focus on buses and mini–bus taxis is undertaken. This report draws on case studies in South Africa, Kenya, Ghana, Rwanda and Zimbabwe and looks at existing capabilities for assembly opportunities.
Machinery and Equipment Report
A review of the production and sale of zero-emission heavy-duty vehicles and equipment is undertaken, with trucks, mining equipment, agricultural equipment and the general electrification of various categories of machinery and equipment, together with ownership models being analysed. Conversion of fossil fuel-driven vehicles to NEV’s is also considered and then role players and stakeholders are identified, together with opportunities in the NEV value chains and for Fuel Cell Electric Vehicles (FCEV) components.
Machinery and Equipment Report
A review of the production and sale of zero-emission heavy-duty vehicles and equipment is undertaken, with trucks, mining equipment, agricultural equipment and the general electrification of various categories of machinery and equipment, together with ownership models being analysed. Conversion of fossil fuel-driven vehicles to NEV’s is also considered and then role players and stakeholders are identified, together with opportunities in the NEV value chains and for Fuel Cell Electric Vehicles (FCEV) components.
NEV Infrastructure Report
The NEV industry requires support infrastructure in the form of electricity supply, charging stations and equipment, policy and incentives, together with other support and enabling investments, including finance and insurance. These issues are traversed and opportunities identified in this report.
NEV Infrastructure Report
The NEV industry requires support infrastructure in the form of electricity supply, charging stations and equipment, policy and incentives, together with other support and enabling investments, including finance and insurance. These issues are traversed and opportunities identified in this report.
Battery Value Chain Report
The batteries in various NEVs are becoming an important technology in themselves and underpin certain elements of the NEV industry and opportunities. Battery types have been analysed with smaller and larger mobility issues traversed and a brief review of battery studies conducted in South Africa.
Battery Value Chain Report
The batteries in various NEVs are becoming an important technology in themselves and underpin certain elements of the NEV industry and opportunities. Battery types have been analysed with smaller and larger mobility issues traversed and a brief review of battery studies conducted in South Africa.
Battery Value Chain Assessment Report
This report evaluates the ‘Battery Value Chain’ within the New Energy Vehicle (NEV) ecosystem and, at a scoping level, assesses and benchmarks the material production and cell manufacturing costs. The report draws on the literature and published materials to provide an overview of the development and status of the battery value chain with an emphasis on the material supply chain. A ’cost example’ for a 1 GWh Gigafactory together with the supporting sulphate production is provided.
Battery Value Chain Assessment Report
This report evaluates the ‘Battery Value Chain’ within the New Energy Vehicle (NEV) ecosystem and, at a scoping level, assesses and benchmarks the material production and cell manufacturing costs. The report draws on the literature and published materials to provide an overview of the development and status of the battery value chain with an emphasis on the material supply chain. A ’cost example’ for a 1 GWh Gigafactory together with the supporting sulphate production is provided.
Trade, Policy, Conformity Report
A range of trade policies, incentives and tax schemes are considered that various countries employ to accelerate the transition to NEVs. Tariffs and regional integration for trade enhancement are considered, including Rules of Origin (RoO) and the implications of the African Continental Free Trade Agreement (AfCFTA) on the emerging NEV industry in Africa and policy recommendations for the manufacturing of mobility.
Trade, Policy, Conformity Report
A range of trade policies, incentives and tax schemes are considered that various countries employ to accelerate the transition to NEVs. Tariffs and regional integration for trade enhancement are considered, including Rules of Origin (RoO) and the implications of the African Continental Free Trade Agreement (AfCFTA) on the emerging NEV industry in Africa and policy recommendations for the manufacturing of mobility.
Stakeholder Engagement Report
This report undertakes to bring the views of a variety of stakeholders within the NEV ecosystem, all contributing or playing a part in scaling for adoption and value creation. The report sets out the methodology, stakeholder categories and stakeholder organisations, presents the findings, gives an overview of the NEV transition ecosystem, identifies key takeaways and notes potential NEV investment areas to be explored.
Stakeholder Engagement Report
This report undertakes to bring the views of a variety of stakeholders within the NEV ecosystem, all contributing or playing a part in scaling for adoption and value creation. The report sets out the methodology, stakeholder categories and stakeholder organisations, presents the findings, gives an overview of the NEV transition ecosystem, identifies key takeaways and notes potential NEV investment areas to be explored.
Strategy and Investment Report
This report aims to capture the growth opportunities in the NEV market to underpin the development of industry strategies and catalyse the provision of substantial funding to support the development of an NEV ecosystem in South Africa and across Africa. Four pillars are identified for further development. For each of the four pillars, a value chain is mapped to identify investment opportunities that are specifically tailored to the South African and the African NEV environment. The report ranks the investment opportunities and also looks at locations for Sustainable Industrialisation with Special Economic Zones (SEZs).
Strategy and Investment Report
This report aims to capture the growth opportunities in the NEV market to underpin the development of industry strategies and catalyse the provision of substantial funding to support the development of an NEV ecosystem in South Africa and across Africa. Four pillars are identified for further development. For each of the four pillars, a value chain is mapped to identify investment opportunities that are specifically tailored to the South African and the African NEV environment. The report ranks the investment opportunities and also looks at locations for Sustainable Industrialisation with Special Economic Zones (SEZs).
JUST ENERGY TRANSITION
In this evolving energy transition landscape, the JET Implementation and Investment Plan sets out a JET Portfolio and Roadmap for the NEV sector that reflects current NEV initiatives by Development Finance Institutions (DFIs), municipalities and the private sector, which are testing models that can be scaled as policy measures are implemented and as financing is mobilised. The JET NEV Portfolio also sets out a proposition for the Industrial Development Corporation (IDC) to lead a coordinating platform with stakeholders to crowd in appropriate sources and types of finance to expedite growth in South Africa’s NEV industry.
JET – IP Investment Plan (2023 – 2027)
South Africa’s Just Energy Transition Investment Plan (JET IP) for the initial period of five years (2023-2027) gives effect to the historic Just Energy Transition Partnership (JETP) forged at the UNFCCC’s (United Nations Framework Convention on Climate Change) 26th Conference of the Parties (COP26) between the government of South Africa and the governments of France, Germany, United Kingdom (UK), United States (US), and the European Union (EU) (forming the International Partners Group [IPG]).
JET – IP Investment Plan (2023 – 2027)
South Africa’s Just Energy Transition Investment Plan (JET IP) for the initial period of five years (2023-2027) gives effect to the historic Just Energy Transition Partnership (JETP) forged at the UNFCCC’s (United Nations Framework Convention on Climate Change) 26th Conference of the Parties (COP26) between the government of South Africa and the governments of France, Germany, United Kingdom (UK), United States (US), and the European Union (EU) (forming the International Partners Group [IPG]).
JET – IP Implementation Plan (2023 – 2027)
The JET Implementation Plan is a roadmap that enables South Africa to take targeted strides towards meeting its decarbonisation commitments in a manner that delivers just outcomes for those affected by the energy transition and that contributes to inclusive economic growth, energy security, and employment at a pace, scale, and cost that is consistent with the country’s socio-economic development path, needs, and affordability.
JET – IP Implementation Plan (2023 – 2027)
The JET Implementation Plan is a roadmap that enables South Africa to take targeted strides towards meeting its decarbonisation commitments in a manner that delivers just outcomes for those affected by the energy transition and that contributes to inclusive economic growth, energy security, and employment at a pace, scale, and cost that is consistent with the country’s socio-economic development path, needs, and affordability.
JET NEV PROGRAMME MANAGEMENT OFFICE (PMO)
South Africa’s New Energy Vehicles (NEV) Portfolio is a key pillar of the Just Energy Transition Implementation Plan (2023–2027). Coordinated under the Presidency and hosted by the Industrial Development Corporation (IDC), the portfolio’s mission is to establish a globally competitive NEV industry that drives jobs and scales investment, localisation, and decarbonisation of transport.
JET NEV PROGRAMME MANAGEMENT OFFICE (PMO)
South Africa’s New Energy Vehicles (NEV) Portfolio is a key pillar of the Just Energy Transition Implementation Plan (2023–2027). Coordinated under the Presidency and hosted by the Industrial Development Corporation (IDC), the portfolio’s mission is to establish a globally competitive NEV industry that drives jobs and scales investment, localisation, and decarbonisation of transport.
