Thought Leadership Piece

It is tempting to look at the measured pace of fully electric vehicle adoption on South African roads and conclude that the automotive aftermarket still has time to adapt. That perspective is short-sighted and carries significant economic and operational risks for the sector.

The growing presence of traditional and plug-in hybrid vehicles demonstrates that the technological transition is already well underway. Within the next few years, thousands of these increasingly sophisticated vehicles will move beyond their original manufacturer warranty periods and into independent aftermarket workshops.

“The question is not whether electromobility is coming to the aftermarket – it is already here. The industry needs to make sure that its businesses and people are ready to work safely and competently on these vehicles when they arrive outside the dealer network,” says Pieter Niemand, National Director of the Motor Industry Workshop Association (MIWA) representing 2 700 independent workshops nationally and a proud association of the Retail Motor Industry Organisation (RMI). 

Pieter Niemand, National Director of the Motor Industry Workshop Association (MIWA)

South Africa’s automotive retail aftermarket is a fundamental pillar of the economy, supporting more than 270,000 jobs across approximately 23,000 employer businesses. The vast majority are small and medium-sized enterprises, spanning mechanical repair shops, vehicle dealerships, tyre centres, precision engineering businesses and remanufacturing operations.

If the aftermarket delays adapting its skills base, thousands of independent businesses face the prospect of losing customer trust, commercial relevance and ultimately sustainability as the national vehicle fleet evolves.

“For independent workshops, this is ultimately about remaining relevant and competitive. Customers will continue to need trusted businesses to maintain and repair their vehicles, but those businesses must have the skills to work on the technologies that are increasingly coming into the market,” Niemand says.

The shift towards electromobility also introduces new technical and safety considerations into everyday workshop environments. Technicians are increasingly encountering high-voltage electrical circuits, sophisticated battery packs and integrated software architectures.

High-voltage vehicle components can present serious electrical hazards if they are handled without the correct procedures, equipment and training. Modern technicians therefore need formal competence to identify risks, isolate electrical systems safely, navigate digital diagnostic platforms and complete complex repairs in line with internationally recognised safety standards.

“This is a significant change for the traditional workshop environment. Technicians cannot simply rely on the knowledge and experience that has served them well with conventional vehicles. They need to understand high-voltage systems, battery technology and electronic diagnostics, and they need to know how to work safely around them,” says Niemand.

The skills requirement extends beyond the workshop floor. Service advisors, parts salesmen and sales teams are an important link between technical staff and vehicle owners. Frontline employees need a sound understanding of hybrid and electric propulsion systems so they can guide motorists accurately, quote correctly for specialised repairs, order the appropriate parts and communicate important safety considerations.

To safeguard the workforce and raise industry standards, fragmented and informal learning needs to make way for nationally recognised qualifications. The RMI has partnered with merSETA and the Quality Council for Trades and Occupations (QCTO) to establish three formal occupational skills programmes for new energy vehicles.

The structured qualification system follows a stepped approach. The first has a strong safety focus, and is aimed at helping workshop assistants develop the correct support practices around electric and hybrid vehicles. The remaining programmes are aimed at qualified technicians, with a stronger focus on maintenance, diagnostics and repair processes. This approach mirrors that already in place in Europe, where high-voltage training is treated as an ongoing process rather than a single intervention, and which is tailored according to an individual’s role, prior qualification and the type of work they are expected to perform. This ensures that there is a standardised training programme in place, setting a benchmark for workshops throughout the country, whilst also complying with international best practice.

International partnerships are also helping to strengthen South Africa’s training pipeline. Collaborations with organisations such as the German Chamber of Crafts Erfurt and GIZ enable local training to be benchmarked against more mature electromobility markets.

These initiatives incorporate the proven dual-system training philosophy, combining theoretical instruction with practical workplace experience. This approach provides young people entering the trade with portable qualifications while giving experienced mechanics a structured opportunity to upskill throughout their careers.

“We have an opportunity to learn from markets that are further along in the electromobility journey while developing skills that are relevant to South Africa. The combination of formal learning and practical workplace experience is particularly important in a technical industry such as ours,” says Niemand.

Preparing the aftermarket for electromobility will require proactive commitment from every stakeholder. Independent workshop owners and entrepreneurial mechanics need to embrace the opportunities presented by new vehicle technologies if small businesses are to continue thriving alongside larger dealer networks.

“The independent aftermarket has always adapted to changes in vehicle technology. Electromobility is another major step in that evolution, but it requires us to start preparing now rather than waiting until the vehicles are already in our workshops,” Niemand says.

MIWA is encouraging workshop owners, automotive technicians, business managers and other industry stakeholders to visit the organisation at Automechanika Johannesburg in October. The event will provide an opportunity to explore emerging training pathways, examine the latest diagnostic technologies and understand how accredited skills initiatives can help businesses future-proof their operations.

“Automechanika provides an ideal platform for the industry to engage with these developments. We want workshop owners and their teams to understand what is available to them and, importantly, to see that there are practical pathways to building the skills they will need for the future,”  concludes Niemand.

South Africa’s township economy is not only facing a demand problem. For many businesses, the bigger challenge may be getting the right products to the right place at a competitive price.

The 2026 Rural and Township Economy Report highlights significant procurement and distribution challenges facing businesses outside the country’s major commercial centres. According to the Department of Trade, Industry and Competition (the dtic), informal businesses face higher procurement costs and limited access to formal distribution channels, while consumers can face higher effective prices because of limited product variety and quality.

For the supply-chain industry, this points to a problem that sits further upstream than the shop itself.

If a business cannot source products reliably, competitively and in sufficient volume, its ability to compete is constrained before the customer even walks through the door.

The Cost of Getting Stock

Procurement is one of the clearest pressure points.

The Competition Commission’s Rural and Township Economy Project identifies constraints in how township and rural businesses source and sell goods, with smaller businesses facing challenges that can prevent them from scaling and integrating more fully into broader value chains.

The issue is partly one of scale.

A small retailer buying limited quantities does not necessarily have the same purchasing power as a larger chain. That can affect the prices it pays, the range of products it can stock and how frequently it can replenish inventory.

The result is a cycle where scale becomes an advantage not only for retailers, but for businesses further up the supply chain as well.

A business that pays more for stock has less room to compete on price. If it cannot reliably obtain popular products, it also risks losing customers to businesses that can.

Distribution Determines What is Available

Price is only one part of the problem.

Stock availability matters just as much.

The dtic has identified stock availability as a key challenge for township businesses, noting that consumers are less likely to return when products are out of stock. The department has also highlighted the need for better supply-chain management and point-of-sale technology to improve the customer experience.

That changes how the distribution problem should be viewed.

A product sitting in a national warehouse does not necessarily help a consumer in a township. It still needs to move through the right wholesale or distribution channel, reach the local business at the right time and be available when the customer wants it.

This final connection can be easy to overlook when supply chains are designed primarily around large formal retailers.

The Route to Market Matters Too

The challenge also works in the other direction.

Many township businesses are heavily dependent on their immediate local customer base, limiting their ability to reach larger markets.

That creates a similar problem for producers and manufacturers. A business may have a product that could sell beyond its immediate area, but reaching those customers requires access to distribution, retail and digital channels that may not be readily available.

The supply chain therefore affects both sides of the market: how businesses get products in and how they get products out.

That is particularly important if South Africa wants township enterprises to become more integrated into broader manufacturing and distribution networks rather than remaining largely localised.

Could Aggregation Help?

One potential way to address the scale problem is through greater purchasing power.

In a recent address to women entrepreneurs, Deputy Minister of Trade, Industry and Competition Zuko Godlimpi encouraged township businesses to form partnerships and cooperatives so they can buy and sell in greater volumes.

The logic is straightforward. If smaller businesses can aggregate their demand, they may be able to access some of the purchasing advantages normally associated with larger buyers.

Government has already incorporated this principle into support for township community convenience stores. The dtic’s Spaza Shop Support Fund includes support for stock procurement and delivery, while the department has said the programme is intended to strengthen links between spaza shops, local manufacturers, black industrialists and wholesalers through bulk purchasing arrangements.

But aggregation still needs infrastructure behind it.

Someone has to consolidate orders, manage inventory, arrange transport, handle storage and distribute stock. Without those capabilities, simply combining purchasing power will not solve the wider distribution problem.

Closing the Distribution Gap

South Africa has no shortage of entrepreneurial activity in its townships. The challenge is making it easier for those businesses to participate in supply chains that extend beyond their immediate surroundings.

That means looking beyond the individual retailer.

Better wholesale networks, more efficient distribution channels, technology that improves stock visibility and logistics models designed around smaller businesses could all help reduce some of the disadvantages created by limited scale.

It also means recognising that access to a product is not the same as access to a supply chain.

A township retailer may technically be able to buy a product, but if it pays more, receives inconsistent supply or has limited access to alternative suppliers, it is competing from a weaker position.

The 2026 Rural and Township Economy Report makes clear that procurement, stock availability and access to distribution remain important barriers for many smaller businesses.

Closing that gap will therefore require more than encouraging businesses to grow. It will require supply chains that allow them to buy competitively, maintain reliable stock and reach more customers.

For South Africa’s township economy, better distribution could be one of the practical ways to turn local business activity into businesses that can genuinely scale.

By Maureen Phiri, Director at Oxyon People Solutions

In the past, the logistics of workforce management have tended to happen behind the scenes. Clients saw the end result of staff arriving on site, projects being delivered, and operational requirements being met, but the processes that made it possible were mostly invisible. However, this approach is now beginning to change, thanks to Artificial Intelligence (AI) becoming more integrated into workforce management.

Workforce providers can now give their clients greater visibility into the processes behind staffing. This means that clients have a better understanding of workforce readiness, compliance, and operational performance, which in turn allows them to make faster, more informed decisions. For workforce providers, this means that administrative functions can become strategic assets that strengthen collaboration, build trust, and create greater value for clients.

AI is Connecting the Workforce Journey

Clients are looking for increased transparency when it comes to their outsourced staffing processes. For workforce providers to be able to do this, they need to bring together information from across the workforce lifecycle. Previously, this would have been a labour-intensive task, but AI makes it much quicker and easier to collate information from across separate systems like recruitment, onboarding, compliance, and workforce management.

Connecting these functions allows workforce providers to have a much clearer view of workforce readiness and allows them to share relevant information with clients in real time. This means that instead of waiting for reports or updates, clients can see where people are in the recruitment or onboarding process at any time. It also helps them to  understand whether compliance requirements have been met, and identify any potential issues in the process.

This changes the role of workforce logistics, because the information that was previously only used to support internal operations can become a competitive advantage. With AI behind the scenes, this information can help clients plan more effectively, respond more quickly, and work more closely with their workforce partners.

Making the Back Office Visible

Take onboarding as an example. Traditionally, clients would only become involved in the process once a worker was ready to start, but using AI means that workforce providers can give their clients visibility throughout the process. This means that clients can see how onboarding is progressing as it happens, and any problems that might cause delays can be identified and dealt with early.

The same applies to compliance. With visibility throughout the recruitment processes, clients can easily see whether compliance requirements are being met, rather than only being notified when a problem occurs. This reduces risk, because issues can be handled before they can have a negative effect on client operations.

When it comes to workforce administration, the benefits are similar. Having real-time visibility into information that used to only be used internally at a workforce provider means that clients are more informed and can make better operational decisions.

More Transparency Builds Stronger Partnerships

Better visibility helps to improve reporting, but it can also change the relationship between workforce providers and their clients. If workforce providers give their clients ongoing access to more information, the whole process becomes more proactive. Problems can be identified quickly and decisions can be made faster. Added to this,  both clients and workforce providers can understand the workforce journey better, as it happens. 

It is important, however, to remember that responsible data management is essential. Giving clients more visibility into workforce processes does not mean providing unrestricted access to personal employee information. AI should help organisations share the information clients need to make better business decisions, but it should also be used to make sure that personal employee data is always protected.

Clients and workforce providers also need to remember that technology should never replace human judgement. AI can process information quickly and can identify potential problems, but any decisions about recruitment, onboarding, and workforce management must still be made by people who can use their experience to consider the circumstances and take responsibility for the outcome.

The Future of Workforce Logistics

AI is increasingly becoming part of workforce management, but the real value of these tools is not just in automating administrative tasks. If workforce providers can use AI to make workforce processes more transparent, they can give their clients better visibility into the information that supports operational decisions, including onboarding and compliance. This is fast becoming a competitive advantage that helps workforce providers strengthen client relationships, support better decision-making, and demonstrate the value of their expertise.