61-year-old local engineering company could be forced to leave South Africa
ROVD Engineering is another South African company that will be hit hard by the US tariffs. The company stressed that it might have to leave the country to stay in business.
ROVD is a 61-year-old local company based in Nelson Mandela Bay which. Founded in 1964, the company manufactures turnkey automation systems for customers worldwide.
The firm highlighted that a pivotal shift for the company happened in 1988 when Volkswagen commissioned us to develop a conveying system in Uitenhage (now Kariega), South Africa.
“This project marked our entry into the automotive industry, setting the stage for a lasting connection with automotive manufacturers across the region,” it said.
Since then, ROVD has specialised in cutting-edge material handling, conveyor systems, and high-quality automotive manufacturing and salt mining equipment.
Today, the company directly employs hundreds of staff in its design, fabrication, assembly and installation operations and supports a wide network of local subcontractors and sub-suppliers.
However, this is threatened by the 30% US tariffs imposed on South Africa as of 7 August 2025.
ROVD Engineering people and culture manager, Athi Lupondwana, told Daily Maverick that the company had halted all expansion plans.
He added that significant job losses were on the cards, with no new work coming in, and the company had scaled back to a four-day workweek. “We will stretch it out for as long as we can,” said Lupondwana.
“We were on the brink of doubling our workforce, launching new facilities, and injecting energy into the local economy,” added CEO Garth de Villiers.
As a result, he noted that ROVD is now considering offshore manufacturing to remain globally competitive, a move that would end 61 years of continuous local operations in Gqeberha.
Despite the scale of the threat, the company said it had received no direct engagement or support from the government.
“ROVD calls on President Cyril Ramaphosa and the Department of Trade, Industry and Competition to move beyond public statements and urgently engage in targeted diplomacy with the United States,” the company said in a statement.
South African businesses under pressure
ROVD’s warning is not isolated. Another example is Swartland, a long-standing South African manufacturer of timber windows, doors, and other products.
The company has also flagged that it may be forced to shut its export business after 35 years due to the same US tariffs. That would place a further 350 local jobs in jeopardy.
These developments come at a time when South African businesses are already under significant financial stress.
Data from Statistics South Africa shows that 753 businesses were liquidated in the first half of 2025, of which 98 were compulsory or court-ordered liquidations.
Craig Blumenthal, an insolvency expert at Fluxmans Attorneys, said the difference between voluntary and compulsory liquidations is key when analysing business health.
While voluntary liquidations can sometimes reflect normal business decisions, such as restructuring or tax planning, compulsory liquidations are a clearer sign of insolvency and distress.
“Compulsory liquidations are clearly more related to companies being in financial distress than is the case with the far more opaque voluntary liquidation category,” he said.
Taking this into account, Stats SA’s data shows that compulsory liquidations in the first half of the year are up around 7.4% from 2024.
Although the full effect of the US tariffs may not yet be reflected in the data, Blumenthal warned that the second half of 2025 will likely paint a more complete and potentially troubling picture.
He also cast doubt on the possibility of a quick reversal. “I believe many of the government’s current policies and geopolitical stances are incompatible with those of the USA,” he said.
“This is made worse by the overt and very public pressure the USA is placing on dissident countries.”
He acknowledged that the situation could create opportunities for South Africa to forge new trade relationships and explore untapped growth markets. However, he highlighted that this is yet to be seen, and it is far too early to predict an outcome.
Large corporations may weather the coming economic strain better than others, with business rescue data showing very few entering formal restructuring processes.
Blumenthal warned that small and medium-sized enterprises (SMEs), which tend to be less financially buffered, account for most business rescue cases and are far more exposed to external shocks like the current tariffs.
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