REFLECTING the importance of the South African automotive components sector to the local economy, R4.8-billion was committed to investment in the sector, it was announced on the last day of the Naacam Show 23. The show was hosted in partnership with the Tshwane Economic Development Agency (TEDA), in the City of Tshwane, from August 30-31.
National Association of Automotive Component and Allied Manufacturers (Naacam) CEO Renai Moothilal, confirmed that the pledge was consolidated from a group of sixteen exhibitors at the event, and reflected committed investments to be implemented between now and the end of 2024. This group, coming from different regions and segments of component manufacturing, was a mix of large multinational and domestic component manufacturers as well as emerging black industrialists.
Minister of Trade, Industry and Competition, Ebrahim Patel, a keynote speaker at the show welcomed the announcement and responded that “Investment is the lifeblood of growth. So much of our preoccupation is to expand the economy, get more taxes and create more jobs, and generate revenue for essential public services. But all of that depends on investment – a commercial decision driven by an expectation of a return. I am pleased with the pledge here today as this is a strong vote of confidence by component makers”. He had earlier advised participants that the importance of component manufacturing has traditionally been underplayed, with the attention often being on the large assembly original equipment manufacturers (OEMs), and that the component sector contribution to SA’s economy is one of the most fundamental arguments for the incentives that South Africa offers the automotive industry.
Other parts of the Naacam Show conference explored a multitude of industry-pertinent issues ranging from how the transition to new energy vehicle (NEV) production could impact component producers, to how carbon regulations and the current energy challenges could be responded to in plants across the country.
Transnet group CEO, Portia Derby, spoke on how Transnet was looking to improve its offering to the domestic component manufacturers under the wider context of how logistics and infrastructure would be a source of future competitiveness for automotive manufacturing in South Africa.
Enhancing inclusivity through women and youth participation in the automotive sector was the underscoring theme of a dedicated Women in Autos roundtable at the show. Developed in partnership with the Automotive Industry Transformation Fund (AITF) and the Women Economic Assembly (Wecona), this session explored challenges impeding the increased participation of youth and women in the sector and reiterated the significant commitment and efforts needed to address these. It offered ideas on how to increase female ownership through the value chain, unlock sustained procurement opportunities and advance the skills agenda.
The R4.8-billion investment, described by Patel as a “strong vote of confidence in the South African Economy,” will support more than 10,000 jobs.
The companies that pledged include Shatterprufe, Atlantis Foundries, South African Tyre Manufacturers Conference, CRH Africa Automotive, John Moffat Prolock, IBO Group, and Auto Industrial Group.
Patel said that the government needed to respond to the private sector’s appetite to invest in the South African economy by creating a conducive environment where companies are more confident in putting money into building more factories. This, in turn, will create job opportunities for young people in a growing economy that represents industrial development.
The two-day Naacam Show 2023 was attended by over 1,300 visitors and this powerful showcase of the manufacturing excellence found across South Africa’s automotive components sector attracted more than 130 exhibitors, across established manufacturers and service providers in the automotive components sector, and emerging SMMEs. The next iteration of the Naacam Show will happen in 2025.
