Whilst 2020 has seen the pulling back of investment in sectors such as retail and tourism, the automotive sector backed by the 2035 Automotive Master Plan released in 2017 is seeing the R3.4billion Tshwane Automotive Special Economic Zone (TASEZ) progressing with clearing of the site, groundwork and the installation of bulk infrastructure currently underway.
Government and the private sector is establishing an automotive manufacturing hub adjacent to Ford’s Silverton Assembly Plant in Pretoria, which aims to become Africa’s first automotive city.
This project is one of many aimed at moving SA from the current ±600,000 vehicles assembled in country to 1,400,000 per annum (based on pre-COVID plans) and seeks to increase the level of local content from a current 38% to 60% of inputs, in-line with the policy shift and master plan.
This localization push is likely to increase the number of multinational companies operating in South Africa as Tier 1 and Tier 2 component manufacturers.
The automotive sector has been well supported by policy and has enjoyed R2,4billion in approved incentives through the dtic’s Automotive Incentive Scheme (AIS) in 2018/9 for some 45 projects.
The drive for local and transformed suppliers, has led to the establishment of the Automotive Industry Transformation Fund (AITF) in 2019, a R6billion Equity Equivalent Program and the commenced operationalization of the fund through the appointment of Mr. Jabulani Selumane in 2020 who will lead the transformation of the auto-sector and its value chain.
As part of Uzenzele’s commitment to driving economic growth in South Africa, we have partnered with Detroit based manufacturing engineering consulting firm – (TPT) – to offer OEMs, Tier 1 and Tier 2 component manufacturers with skills and supplier development services combining TPT’s international technical skills and Uzenzele’s local, B-BBEE and capital raising expertise in support of private mid-tier suppliers to the sector.
“Whilst we’ve been servicing Ford in the United States since 2005 and South Africa for a few years now, we’re excited to engage with the South African market and bring best practice in supplier development through the sectors massive growth targets to 2035 and we’re thrilled to have Uzenzele as a local partner. Whilst COVID has slowed our plans down, with international travel now reopening, we’re looking forward to the opportunities South Africa has to offer” David Kunselman, CEO TPT.