Local automotive production is key to unlocking growth

Gauteng is the engine of economic growth and the province’s automotive sector has the potential to become one of the major drivers of employment. “We need to look at re-industrialisation and encourage a culture of local investment and local procurement,” said Gauteng MEC for Economic Development, Nkosiphendule Kolisile. Barlow Manilal, CEO of the Automotive Industry Development centre, said South Africa currently represented 80% of Africa’s vehicle output, yet only 0.61% of global production. “Increasing production yields is the only way to meet global competitiveness and it is imperative for the South African economy to move towards a local content production of 70%.” He added that the province also needed to be cognisant of development opportunities in the rest of Africa. “There are major automotive industry developments in Zimbabwe and Botswana at the moment,” he said. To address the challenges raised, AIDC has highlighted three key focus areas for 2013, including development of the supply chain, supplier development and skills development and training, which includes working with the Gauteng provincial government to create learning material and develop curriculums. Siphiwe Ngwenya, acting CEO of the Gauteng Growth and Development Agency (GGDA), said these initiatives would ensure that the province retained its strength as the country’s economic powerhouse. “We cannot afford to become complacent though, as other provinces are continuously raising the bar in terms of economic development.” CAPTION Barlow Manilal ... encouraging a culture of local investment and local procurement.