Deputy President Mashatile
By Thabo Mosia
Deputy President Paul Mashatile has assured executives from Isuzu Motors Limited’s headquarters in Japan that South Africa is actively working to resolve its port and infrastructure issues. Speaking at the Isuzu Fujisawa Plant during a working visit on Monday, Mashatile highlighted South Africa’s progress in tackling energy challenges and showcased the country’s automotive prowess, with Isuzu’s Struandale Plant in Gqeberha as a shining example. The visit, aimed at deepening ties between South Africa and Japan, comes amid efforts to boost trade, investment, and collaboration in key sectors like manufacturing, energy, and agriculture.
A Milestone Visit to Strengthen Ties
Deputy President Paul Mashatile landed in Tokyo on Sunday, 16 March 2025, kicking off a high-stakes working visit to Japan. Leading a delegation of ministers, deputy ministers, and senior officials, Mashatile’s trip is all about cementing South Africa’s partnership with Japan – a global leader in technology and manufacturing. On Monday, he headed straight to the Isuzu Fujisawa Plant, where he met with top executives and toured the facility, a hub of innovation for commercial vehicles and diesel engines.
The visit isn’t just a formality. It’s a chance to showcase South Africa’s growing role in the automotive industry and address lingering concerns about infrastructure bottlenecks that have hampered trade. “I am pleased to report that we have dealt with energy issues that affected our economy,” Mashatile told the Isuzu team, signaling a turnaround from the load-shedding woes that once plagued the nation. Recent reports from Business Day confirm that South Africa has gone over 100 days without power cuts in 2025, a feat Mashatile proudly linked to improved economic stability.
But it’s the port and infrastructure challenges that took centre stage. Congestion at major ports like Durban and Cape Town, coupled with equipment breakdowns, has slowed imports and exports, costing the economy billions. Mashatile reassured Isuzu executives that fixes are underway, with Transnet rolling out recovery plans to upgrade cranes, rail networks, and port facilities. “We’re sorting it out,” he said, a promise backed by a R47 billion investment pledge from the government, as noted in a February 2025 Engineering News article.
Isuzu’s Deep Roots in South Africa
Isuzu Motors, a Japanese giant known for its trucks and bakkies, has a long history in South Africa. The Struandale Plant in Gqeberha, Eastern Cape, stands out as a jewel in its global crown. “As a country, we are honoured that the Isuzu Motors South Africa Struandale Plant in Gqeberha, in our Eastern Cape province, is the first fully-owned plant outside Japan whereas in other countries Isuzu produces vehicles through joint ventures and license agreements,” Mashatile said. This isn’t just a factory – it’s a vote of confidence in South Africa’s workforce and skills.
The numbers tell the story. The Struandale Plant churns out 28 500 vehicles a year, feeding dealerships in 26 African countries. Since opening in 2018 as a fully-owned operation, it’s become a hub for Isuzu’s African ambitions. Mashatile pointed out that this setup – unlike the joint ventures Isuzu runs elsewhere – shows trust in South Africa’s ability to deliver. “This shows great confidence in our country and our people for the skills necessary to produce these trucks and bakkies,” he added.
Isuzu’s impact goes beyond production lines. The company employs over 1 000 South Africans directly and supports 107 local suppliers, sourcing more than 700 parts locally. Some of these parts even make it into Isuzu’s global supply chains, a fact Mashatile highlighted with pride. “I also understand that Isuzu contracted 107 suppliers with over 700 parts being localised in South Africa and some integrated into Isuzu global supply chains,” he said. This localisation effort has earned Isuzu a Level 1 Broad-Based Black Economic Empowerment (BBBEE) rating – the highest possible – showcasing its commitment to economic inclusion.
Driving Trade with AfCFTA and Beyond
The timing of Mashatile’s visit couldn’t be better. The Africa Continental Free Trade Area (AfCFTA), launched in 2021, is opening doors across the continent, and South Africa is positioning itself as a gateway. With 54 countries signed up, the AfCFTA creates a massive market of 1.3 billion people and a GDP of US$3.4 trillion – the world’s largest single free trade zone. “With the Africa Continental Free Trade Area (AfCFTA), the continent has created even more opportunities for Isuzu to export and operate in over 54 countries that have signed the agreement,” Mashatile explained.
Isuzu is already tapping into this potential, exporting vehicles from Gqeberha to markets like Kenya, Nigeria, and Ghana. But it’s not just Africa. The Southern African Development Community (SADC)-EU Economic Partnership Agreement lets Isuzu ship to Europe too, duty-free. “Therefore, South Africa is the place to be, indeed a gateway into the continent and the rest of the world including Japan under the generalised system of preferences,” Mashatile said. Japan’s preferential trade system gives South African exports a leg up, and Mashatile wants to see more of that flow both ways.
Posts on X echo this optimism. Users have praised Mashatile’s focus on trade, with one noting, “South Africa’s automotive sector is a goldmine – Japan’s investment proves it.” Another added, “AfCFTA could be a game-changer if we get the ports sorted.” These sentiments align with a Mail & Guardian report from early March 2025, which flagged the automotive industry as a key driver of South Africa’s 1.5% GDP growth forecast for the year.
Government Support and Economic Impact
South Africa hasn’t left Isuzu to fend for itself. The Automotive Production Development Programme (APDP), a government initiative, has been a lifeline. It offers tax incentives and support to boost local manufacturing and exports – a policy Mashatile touted during his speech. “He informed the delegation that the government, through the Automotive Production Development Programme, has provided essential support to Isuzu,” a statement from his office confirmed. Since the APDP’s revamp in 2021, vehicle production has climbed, with exports hitting R227 billion in 2024, per IOL.
The ripple effects are huge. Isuzu’s operations have created thousands of indirect jobs through suppliers and dealerships, while its skills development programmes train workers in everything from welding to logistics. Mashatile called Isuzu a “model investor,” pointing to its role in employment, supplier growth, and enterprise development. A 2024 Automotive Business Review piece noted that Isuzu’s Gqeberha plant alone supports over 4 000 jobs across its value chain – a lifeline for the Eastern Cape, where unemployment sits at 42%, according to Stats SA.
But it’s not all smooth sailing. The port delays Mashatile addressed have hit automakers hard. A December 2024 News24 report detailed how congestion at Durban Port forced Isuzu to reroute shipments, adding costs and delays. Transnet’s recovery plan, now in motion, aims to fix this with private sector help – a move Mashatile hinted at as a long-term win. “We’re not just talking; we’re acting,” he stressed, nodding to a R1.4 billion port upgrade deal signed with a Filipino firm in January 2025, per SAnews.
Japan Visit: More Than Just Cars
Mashatile’s trip isn’t all about Isuzu. His packed schedule reflects South Africa’s broader ambitions. On Monday, he’s meeting Dr Akihiko Tanaka, head of the Japan International Cooperation Agency (JICA). JICA’s fingerprints are all over South Africa – from water projects in Limpopo to renewable energy in the Northern Cape. A February 2025 DIRCO release highlighted JICA’s R500 million investment in South African infrastructure since 2020, a partnership Mashatile wants to grow.
Tuesday brings a courtesy call on Japanese Prime Minister Ishiba Shigeru and a stop at the Meiji Jingu Shinto Shrine – a nod to cultural ties. But the real meat comes in talks with Japan’s business community. Mashatile’s delegation, including Trade Minister Parks Tau and Agriculture Minister John Steenhuisen, is pitching South Africa as a hub for manufacturing, mining, energy, and farm exports. “They will focus on key areas such as manufacturing and machinery, mining and mineral beneficiation, energy cooperation, the automotive industry, and improving market access for South Africa’s agricultural products,” a government brief confirmed.
Japan’s a big deal for South Africa. Bilateral trade hit R120 billion in 2024, up 15% from 2023, per BusinessTech. South Africa sends platinum and citrus; Japan sends machinery and cars. Mashatile’s eyeing more – think beef, wine, and solar tech. A TimesLIVE article from last week flagged Japan’s interest in South Africa’s green energy push, with JICA mulling a R2 billion loan for solar farms in 2025.
Challenges and Opportunities Ahead
South Africa’s got work to do. Beyond ports, logistics costs are a headache. The World Bank ranks South Africa 34th globally for trade logistics, behind rivals like Kenya. Rail freight, vital for moving cars from Gqeberha to ports, is creaking – only 11% of goods moved by rail in 2024, down from 20% a decade ago, says Freight News. Mashatile’s assurances are a start, but experts say it’ll take years to catch up.
Crime’s another thorn. Illegal mining and extortion rattled investor confidence in 2024, with Mashatile admitting as much in a January RT interview: “If you want investor confidence, you must deal with crime.” The government’s new task force, launched in February 2025, has nabbed 300 suspects, but the jury’s out on its impact.
Yet, the opportunities outweigh the risks. South Africa’s G20 presidency in 2025, starting December, gives Mashatile a megaphone. “Solidarity, equality, sustainability” is the theme, and he’s pitching Africa’s development – with South Africa as the continent’s engine. Isuzu’s success is Exhibit A. A Central News post from 16 March 2025 noted, “Mashatile’s Japan trip could unlock billions in investment if he plays it right.”
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