Auto sector star performer for SA economy

Auto sector star performer for SA economy

According to the President of South Africa, Cyril Ramaphosa, business confidence is on the rise and both local and international auto investors show interest in investing in South Africa.

Speaking at the South African Auto Week 2024, at the Cape Town International Convention Centre on Thursday, 17 October 2024, Ramaphosa affirmed the industry leaders and Labour that the auto industry remains viable and contributes significantly to the country’s GDP.

Ramaphosa pointed out that the auto industry is growing and has made significant strides towards transformation, and is one of the highest employers in South Africa.

  “Last year, around a fifth of value addition within local manufacturing came from vehicle and automotive component manufacturing. The South African auto industry accounts for around 15 percent of total exports. It continues to blaze a trail in strategic economic markets in the European Union, Africa and North America. 

The automotive industry is a major employer. In 2023, there were approximately 116,000 people employed in vehicle and component manufacturing. Close to 400,000 people work on the retail side in dealerships and repair shops,” said President Cyril Ramaphosa.

The President said the sector continues to transform and government has intervened through the Automotive Transformation Fund which has supported more than 60 beneficiaries and facilitated market access for black-owned firms to the value of R4 billion and supported approximately 2,400 jobs across the industry value chain.

“Since the first Model T Ford rolled off the assembly line in the Ford plant in Port Elizabeth in 1924, South Africa’s automotive manufacturing footprint has expanded considerably. International auto companies are major investors in the South African economy.

They have consistently featured prominently at the annual South Africa Investment Conference, which we inaugurated in 2018. Over the past few years, these companies have invested an average of R8 billion a year. Component suppliers have invested R4 billion on average a year,” said Ramaphosa.

According to the President, industry giants like Ford, VW, BMW, Toyota and others continue to demonstrate confidence in South Africa’s economy by expanding and upgrading existing operations.

Ramaphosa said the success of the automotive sector is attributed to the introduction and success of the transformation industrial policy since the dawn of democracy. Government had pursued an industrial policy underpinned by increased value-addition.

“Through the automotive master plan we aim to increasing the industry’s contribution to global production and increase local content to 60 percent. We aim to bring new companies into the value chain and increasing value addition,” he said.

Journalist

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