SOUTH AFRICA’S AUOMOTICE SECTOR MUST TRANSFORM FOR INCLUSIVE GROWTH

DURBAN, Transformation of the South African automotive industry, which can lead to inclusive growth, is not negotiable, says Trade and Industry Minister Rob Davies.

Speaking at the inaugural National Association of Automotive Component and Allied Manufacturers (NAACAM) Show and Localisation Indaba here Tuesday, he said the industry could advance the growth of the entire manufacturing sector.

This industry is vital to South Africa’s industrialisation, specifically and most importantly to the manufacturing sector of the economy. The industry’s contribution to gross domestic production (GDP) is estimated at 7.5 per cent, with 113,000 people directly employed in the vehicle assembly and components supply industry. Importantly, 82,000 people of this total employment figure are directly employed in the auto component industry, said Davies.

He added that transformation of the sector would ensure that the automotive industry is representative, in line with the national demographics profile.

With the correct support, Davies said, the industry can create much needed jobs. He said component imports had surged to historical levels at 50 billion Rand (about 3.6 billion US dollars), while local content in vehicles had declined to below 39 per cent. He said automotive component employment had remained a concern, as it had somewhat stagnated.

Through the 2035 South Africa Automotive Masterplan (SAAM) process, we are seeking to arrest some of the APDP [Automotive Production and Development Programme] drawbacks, while also ensuring that the long trajectory of industry growth is ensured, he said.

This masterplan process is also making us realise that to ensure the long-term sustainability of the automotive assembly and component industry, all the partners, including government, industry and labour, have to make sacrifices.”

The President of the NAACAM, Dave Coffey, said the automotive industry had the capability to address the challenges facing the economy. Investing in value addition to products, keeping up with technology and supporting the development of key policies of the industry can be a shot in the arm for the industry, he added.

A total of 181 companies are exhibiting at the NAACAM show and 34 are black-owned.

Source: NAM NEWS NETWORK

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