Local content deadline set

Greater localisation of components for
passenger vehicles assembled in South
Africa will have far-reaching impact on
logistics service providers to the sector.
Delegates at the first National
Association of Automotive Component
and Allied Manufacturers of South
Africa (NAACAM) show were told that
government expected the industry to
increase the local content of vehicles
from 38.5% to 60% by value after 2020.
This would change the mix of
containers moving in and out of
South Africa as local component
manufacturers need to export in order to
enjoy the necessary economies of scale.
Automotive Masterplan lead
Justin Barnes told delegates that the
achievement of 60% local content
would support 49 000 new jobs and
add R68bn to annual gross domestic
product.
Speaking at the show, trade and
industry minister Rob Davies said
any beneficiary of future automotive
incentives would need to demonstrate
contribution to black-supplier
development and localisation.