SA-Japan Strengthen Economic Ties as Deputy President Assures Isuzu of Infrastructure Improvements

“I am pleased to report that we have dealt with energy issues that affected our economy,” said Mashatile.

Deputy President Paul Mashatile has assured executives from Isuzu Motors Limited’s headquarters in Japan that South Africa is actively addressing its infrastructure challenges, particularly those affecting its ports. His remarks come amid growing concerns over congestion, infrastructure deficits, and equipment failures at key ports, which have disrupted trade operations.

Speaking on Monday at the Isuzu Fujisawa Plant in Japan during a working visit, the Deputy President reaffirmed the South African government’s commitment to resolving these issues and improving the country’s economic climate. He emphasized that significant progress has been made in addressing energy-related challenges that previously hindered economic growth.

“I am pleased to report that we have dealt with energy issues that affected our economy,” said Mashatile.

Accompanied by a high-level delegation that includes Ministers, Deputy Ministers, and senior government officials, the Deputy President is in Japan to strengthen bilateral cooperation and attract investment. The visit is focused on key sectors such as manufacturing, mining, energy, and market access for South Africa’s agricultural products.

Isuzu’s Strong Presence in South Africa

Isuzu Motors, a multinational manufacturer of commercial vehicles, diesel engines, and automotive parts, has established a significant footprint in South Africa. The Struandale Plant in Gqeberha, Eastern Cape, is the first fully-owned Isuzu production facility outside Japan, a distinction that underscores the company’s confidence in the South African workforce and its automotive industry.

“This shows great confidence in our country and our people for the skills necessary to produce these trucks and bakkies,” Mashatile stated.

The Struandale Plant produces approximately 28,500 vehicles annually and serves dealerships in 26 African countries. With the implementation of the African Continental Free Trade Area (AfCFTA), Isuzu is poised to expand its export reach across all 54 participating nations, leveraging a combined market of 1.3 billion people and a GDP of US$3.4 trillion.

South Africa: A Key Player in Global Automotive Trade

Beyond Africa, Isuzu Motors South Africa also exports to the European Union under the Southern African Development Community (SADC)-EU Economic Partnership Agreement. Mashatile highlighted South Africa’s strategic position as a gateway into Africa and international markets, particularly under the generalised system of preferences with Japan.

“South Africa is the place to be—indeed a gateway into the continent and the rest of the world, including Japan,” he affirmed.

As a key investor in South Africa, Isuzu contributes significantly to employment, skills development, and supplier and enterprise development. The company currently contracts 107 local suppliers, with over 700 parts being localized in South Africa and some integrated into global supply chains. Isuzu has also achieved a Level 1 Broad-Based Black Economic Empowerment (BBBEE) status, demonstrating its commitment to economic transformation.

Government support for the automotive sector, including initiatives like the Automotive Production Development Programme, has played a crucial role in bolstering Isuzu’s success in South Africa.

Strengthening South Africa-Japan Relations

During the visit, Mashatile and his delegation are engaging with the Japanese business community to enhance economic relations. Key discussion areas include manufacturing, machinery, mining, mineral beneficiation, and energy cooperation. The delegation is also exploring opportunities to improve market access for South African agricultural products in Japan.

In addition to his engagements with business leaders, the Deputy President is meeting with key Japanese officials to deepen bilateral ties. On Monday, he was scheduled to meet Dr. Akihiko Tanaka, President of the Japan International Cooperation Agency (JICA), which plays an active role in development projects in South Africa.

On Tuesday, Mashatile will pay a courtesy visit to Japanese Prime Minister Ishiba Shigeru and visit the Meiji Jingu Shinto Shrine, underscoring the cultural and diplomatic significance of the visit.

As South Africa continues to position itself as a leading trade and investment hub, the Deputy President’s visit to Japan marks a strategic step in reinforcing economic partnerships and unlocking new opportunities for growth.