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Volkswagen Invests $513m in South Africa
By Dipo Olowookere
Volkswagen has launched its new Polo and showcased the R6.1 billion ($513 million) investment in its plant and new products, in the presence of Eastern Cape Phumulo Masualle, the Deputy Minister Bulelani Magwanishe of the DTI, media representatives and key stakeholders.
In August 2015, VWSA Chairman and Managing Director, Thomas Schaefer announced an investment of around R4.5 billion rand in new product and facilities. The total investment exceeded R6.1 billion rand, which is partially due to exchange rate fluctuations and the approval of additional plant investments.
The majority of the investment spend was on Capital Expenditure for production facilities, local content tooling, quality assurance and manufacturing equipment as well as Information Technology upgrades.
Localisation remains a key priority for VWSA, with the new models at a 60% local content level, with on-going plans to achieve higher levels.
Volkswagen introduces the innovative One-line Concept for the first time as part of the investment; traditionally vehicles are assembled on unique production lines.
It has always been possible to build derivatives of the same platform on one line, but to build two completely different platforms on one line is a technical challenge, highly complex and requires new thinking and training for the employees.
The introduction of the one line concept also includes a new integrated logistics concept. Whilst there are no short term financial benefits there are synergies and efficiencies as well as people benefits that come about as the result of the one line concept.
Volkswagen is the only vehicle manufacturer which has the words “car” and “people” in its name. This remains relevant and true today. In line with being a socially responsible employer VWSA did not release any employees as the production volumes decreased during the ramp up, but rather retained them in training pools until the third shift commences in April, this year.
VWSA produced 110 000 cars last year, this will increase to 133 000 for 2018 of which 83 000 will be exported to markets around the world. This will include not only right hand drive markets but also to some left hand drive markets, especially for the Polo GTI. Maximum annual plant capacity is expected to be reached with a 3 shift operation of some 160 000 vehicles, in 2019.
Basic economic fundamentals and an investor friendly legislative framework within a reasonably stable economic environment are essential when making major investment decisions for Volkswagen, as is a stable and attractive automotive policy. “The South African Government must be complimented, firstly for the introduction of the MIDP, which gave confidence to the industry and provided a stable base for the successor programme; the APDP which has also been successful in ensuring a future for the automotive sector in South Africa. The Automotive Sector of the South African economy accounts for approximately 7.4% of the GDP and accounts for the direct employment of 113 000 people. I am convinced that the next phase of the APDP will continue in the same vein and allow for continued automotive investment,” said Thomas Schaefer, Chairman and Managing Director of Volkswagen Group South Africa.
The Premier of the Eastern Cape Phumulo Masualle said ”The automotive sector is one of the key sectors in our provincial economy mix, which we believe, alongside the Oceans Economy, Agriculture and Energy, if correctly leveraged, can see the Eastern Cape Province not only grow the regional economy and contribute towards further national economic growth but also become a leader in the drive to modernise and re-skill our work force. We are particularly encouraged by Volkswagen South Africa’s commitment to not only their continued and expanding investment in the South African economy, but also bold initiatives such as the announcement of an R86 million grant to SMMEs located in the manufacture and distribution space of automotive parts. This is a clear signal of the private sector accepting that South Africa’s future prosperity will depend on the societal effort all of us are prepared to invest, not just Government. We hope to continue our partnership to undertake a skills revolution in our province by jointly entering into training ventures so that we may be able to improve our skills base as an economy but also increase the employability and entrepreneurial prospects of our people.”
Deputy Minister Bulelani Magwanishe of the DTI commented “As the government, our commitment to local vehicle production is supported in our Industrial Policy Action Plan (IPAP); with a prime focus on adding value in the manufacturing and industrial sector. Export promotion, job creation and inclusive growth remain as the fundamentals of this policy. It is a privilege to commend VWSA on the launch of its new Polo and its investment of R6,1 billion. Therefore, this investment is particularly relevant to ensure expansion, socio-economic impact and the inclusion of Black Industrialists.”
“We also believe in the long term future of South Africa and Africa, for this reason the Volkswagen Group has created its fourth international region; the Sub Saharan Africa Region with VWSA being fully responsible for the region which will have substantial benefits for our company in South Africa. I believe that there are truly unique opportunities for us as an industry that we need to grasp, specifically here. As the automotive industry goes through radical change with electrification, autonomous driving, digitalisation etc. we must be ready to grasp these opportunities in Sub Saharan Africa”. added Mr Schaefer
The Volkswagen Group retained its number one position in the passenger market for the 7th consecutive year in 2017, achieving a 21.8% market share. One in every 5 cars bought by South Africans last year is either a Volkswagen or an Audi. The Volkswagen brand in the run-out year, of its volume models, the Polo and Polo Vivo achieved a share of 18.9% meaning that the Volkswagen Brand was the passenger market leader, even without its sister brand Audi.
The Polo Vivo and Polo have also been ranked the best selling cars in South Africa since launch in 2010. That is for 7 consecutive years. They are being replaced by the new Polo launched at the event and the new Polo Vivo which will be launched next month. “No doubt these will fare even better in the market in 2018 which we see increasing slightly too some 375 000 passenger cars from the 368 000 in 2017”, commented Thomas Schaefer.
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Interswitch Digitises Nigeria’s Interstate Travel With Ticket Vending Platform
By Modupe Gbadeyanka
Nigeria’s interstate transport ecosystem has been digitalised by the introduction of a ticket vending platform by one of Africa’s leading integrated payments and digital commerce companies, Interswitch.
This comprehensive digital solution was designed to transform ticketing, streamline operations, and enhance service delivery.
At the core of the solution is a secure, token-based system that allows travellers to purchase digital tickets across multiple channels, including web, mobile, and dedicated point-of-sale (POS) devices deployed at transport terminals.
These tokens serve as verifiable digital vouchers, which are validated and redeemed at boarding points, significantly reducing inefficiencies associated with manual ticketing, cash handling, and fragmented sales processes.
It was developed as both an operational management system and a digital marketplace to allow transport operators, particularly small and medium-scale businesses, to digitise their end-to-end processes while connecting to a broader customer base through the Quickteller ecosystem.
With this innovation, operators can seamlessly create and manage routes, oversee terminal activities, track sales, and access real-time performance insights from a single, centralised platform.
It also introduces a marketplace experience that enables travellers to search, compare, and select transport options across multiple operators based on routes, schedules, and pricing. This not only simplifies journey planning but also promotes transparency and choice for commuters.
The platform also supports corporate and institutional users by enabling bulk token purchases, offering a flexible and efficient solution for organisations managing employee or group travel.
In addition, it delivers value to regulators and stakeholders within the transport ecosystem by providing access to structured data and actionable insights that can support oversight, licensing, and consumer protection efforts.
“Transportation remains a critical backbone of Nigeria’s economy, yet much of the sector still operates with fragmented systems and manual processes that limit efficiency and growth.
“With the Ticket Vending Platform, we are introducing a scalable digital infrastructure that empowers transport operators to modernise their operations, expand their reach, and deliver a more seamless experience to travellers.
“Beyond ticketing, this is about creating a connected ecosystem, one that brings together operators, commuters, and regulators on a unified platform, while driving transparency, efficiency, and long-term value across the industry,” the Managing Director for Industry Ecosystems at Interswitch, Ms Chinyere Don-Okhuofu, said.
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FRSC, Brewery Companies Renew Pact to Tackle Drink-Driving
The Federal Road Safety Corps (FRSC) has renewed a strategic partnership with major brewing companies in Nigeria to intensify efforts against drunk driving and improve road safety nationwide.
The renewed Memorandum of Understanding (MoU), signed with members of the Beer Sectoral Group (BSG), extends the collaboration for another five years, with both sides pledging to deepen public awareness, enforcement and community engagement.
FRSC Corps Marshal, Shehu Mohammed, said the partnership underscores the importance of synergy between government and the private sector in addressing road crashes, particularly those linked to alcohol consumption.
He stressed that saving lives on Nigerian roads requires sustained collaboration, adding that the corps would continue to work with industry players to promote responsible behaviour among motorists.
Speaking on behalf of the BSG, Managing Director of Nigerian Breweries Plc and Chairman BSG, Thibaut Boidin, said the renewal reflects the industry’s commitment to sustained collaboration with regulators. He cited previous joint campaigns, including the Don’t Drink and Drive Campaign, as impactful, adding that the next phase would focus on expanding reach and strengthening implementation.
Also speaking, the Managing Director of Guinness Nigeria, Girish Sharma, said the industry remains committed to supporting initiatives that promote safer roads. He noted that while alcoholic beverages are often blamed for road crashes, the real issue lies in irresponsible consumption, particularly drinking and driving.
“We are here to work with you and ensure that this programme grows bigger and delivers real impact. Saving lives is what matters most,” he said.
Similarly, the chief executive of International Breweries Plc, Mr Nicholas Kade, commended the FRSC for its dedication, describing the corps’ efforts as critical to making communities safer. He said the brewing industry would continue to support initiatives that promote responsible drinking and road safety.
The Executive Director of the Beer Sectoral Group, Ms Abiola Laseinde, described the renewal as a milestone in public-private collaboration.
She said the partnership had driven nationwide campaigns against drunk-driving, influenced behaviour and reached millions of Nigerians with road safety messages.
Ms Laseinde added that both parties would scale up interventions in the next five years to further reduce crashes and promote responsible alcohol consumption.
The FRSC and BSG’s partnership has been central to national campaigns discouraging drunk-driving, with stakeholders expressing optimism that the renewed agreement will deliver stronger outcomes.
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NRS Denies Introduction of New Vehicle Tax from July 1
By Modupe Gbadeyanka
The Nigeria Revenue Service (NRS) refuted reports making the rounds on social media that the federal government plans to introduce a new tax on vehicles from July 1, 2026.
Mr Dare Adekambi, who serves as the Special Adviser to the NRS Chairman, Mr Zach Adedeji, and spokesperson for the organisation, said in a statement that the government was not planning to introduce the vehicle tax as claimed.
He described a viral infographic purporting the policy as false and misleading, urging members of the public to disregard it.
Mr Adekambi advised citizens to only rely on information from the NRS, urging them to follow the company its official handles on all social media platforms and its website for accurate information about tax and its activities.
In the infographic, motorists were directed to pay an unspecified vehicle tax rate online or at approved banks and agencies. The website listed as NRS’s was the old one, http://www.firs.gov.ng and not the new http://www.nrs.gov.ng created after it was rebranded.
“The NRS wishes to state categorically that the information did not emanate from the service or any government agency.
“Citizens are, therefore, advised to disregard the fabricated messages designed to mislead the public and instead rely on official government channels for information on government policies,” Mr Adekambi said in the statement.
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