 has accused the ANC-led Eastern Cape government of turning its back on thousands of workers whose livelihoods are under threat as Buffalo City’s automotive industry faces a worsening crisis.){kind=link}
By Thapelo Molefe
The Democratic Alliance (DA) has accused the ANC-led Eastern Cape government of turning its back on thousands of workers whose livelihoods are under threat as Buffalo City’s automotive industry faces a worsening crisis.
According to the DA, the crisis – which was fuelled by escalating United States (US) tariff hikes — has already forced major production cuts and retrenchments at Mercedes-Benz South Africa (MBSA) in East London, where 702 workers are reportedly under the axe.
The party warned that unless urgent interventions were made, the fallout could cripple the metro’s economy.
“More than 113,000 residents in Buffalo City are already unemployed, and almost half of households survive on a single social grant,” said the DA in a statement on Tuesday.
“Every retrenchment pushes another family closer to poverty, hunger, and despair. Workers in the automotive sector now live with the daily fear that their jobs will be lost next.”
The DA has accused the ANC of refusing to allow a debate on the crisis in the Eastern Cape Legislature, despite repeated requests since July.
“Instead of treating this issue with the seriousness it deserves, the provincial government continues to avoid accountability while livelihoods are destroyed,” the statement read.
DA leader in the Eastern Cape Legislature, Vicky Knoetze, expressed frustration that the legislature chose to discuss topics “detached from the real struggles of the people”.
“Honourable Deputy Speaker, how do we tell the people of Buffalo City that the topic selected for them today is ‘strengthening democracy and driving progress’ when they are losing jobs, struggling with poverty, and paying for government incompetence?” Knoetze said during the sitting.
Knoetze said the issues that matter most to residents include the devastating US tariffs, the collapse of service delivery, and widespread maladministration.
“People want to talk about the 40,000 workers in the automotive sector who live in daily fear of losing their jobs,” she said.
“They want to talk about the R1.4 billion loss in the electricity department, the 18-30% tariff hikes, and how infighting and factionalism are bringing the city to its knees.”
Knoetze asked how the ANC plans to create a conducive environment for job creation for the 113,000 unemployed residents of Buffalo City, what measures it will take to assist households that survive on social grants, and what hope it can offer to the 40,000 automotive workers living in daily uncertainty.
She also demanded clarity on the government’s plan to improve service delivery and invest in infrastructure, as well as on how it intends to restore public trust in its leadership.
The DA has proposed a five-point plan aimed at stabilising and modernising the automotive sector. This includes developing a provincial Automotive Transition Strategy to position the Eastern Cape as Africa’s electric vehicle manufacturing hub, and expanding into adjacent industries such as battery and hydrogen technologies.
It also includes incentivising local manufacturing to reduce import dependence, investing in skills development to prepare workers for the electric vehicle future, and engaging urgently with the national government to secure favourable international trade agreements.
“The measures are achievable now with political will. They will protect existing jobs, retain investment and create a platform for long-term economic resilience,” the DA said.
It said silence from the ANC on the issue was “unacceptable”.
“Silence is not a strategy. Denial is not leadership,” the DA warned. “The people of Buffalo City deserve a government that puts their jobs and their future first.”
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