Building skills to bridge the gap
Gauteng’s automotive
sector is growing due
to increased foreign
investment but the
import/export balance is still
heavily in favour of imports. This
needs to be urgently addressed
if the province’s ambitious plans
for reindustrialisation are to be
realised.
“Only 35% of the components
and parts used to manufacture
vehicles in South Africa are
produced locally while the other
65% are imported from various
parts of the world,” said Gauteng
MEC for Economic Development,
Environment, Agriculture and
Rural Development, Lebogang
Maile, at the launch of the
province’s Trade and Investment
Strategy last month.
According to him, Gauteng
automotive companies spend
nearly R8 billion per annum on
imports of automotive parts,
components and accessories.
“This is potential revenue for the
province which needs to be kept
in-house,” he said.
According to Maile,
the Automotive Industry
Development Centre (AIDC)
automotive supplier efficiency
programme remains a “vital
component” of government’s
plans to ensure the industry’s
expansion with increased local
manufacturing.
“Twenty two component
suppliers will be enrolled for
training on quality, costing,
productivity improvement and
supply stability during this
financial year (2015/2016)
and small, medium and micro
enterprise (SMME) companies
engaged in the manufacturing of
bumpers, foundry consumables,
seatbelts, windscreens, airbags
and moulded plastic components
have been targeted for this
programme,” he said.
Maile pointed out that his
department had invested
“heavily” in training and skills
development to ensure improved
local industrialisation. A total
of 1 595 people will be trained
at the Gauteng Automotive
Learning Centre during this
financial year,” he said.
Another highlight this year has
been the launch of South Africa’s
second automotive incubation
centre, in partnership with
Nissan, which has paved the way
for eight black-owned SMMEs to
supply parts and components for
the Nissan Pick Up truck which
is due for production in 2018.
“An investment of R22 million
was secured from the Jobs Fund
for this project,” Maile said,
adding that in addition Nissan
would be investing R200 million
in this project.
