Transnet has partnered with the National Association of Automotive Component and Allied Manufacturers (Naacam) and the National Empowerment Fund (NEF) to boost localisation and manufacturing capacity to support Transnet’s core business.
The five-year partnership, announced in a joint statement on Monday, will see Transnet, the NEF and Naacam implementing a R224-million programme that is expected to contribute to the resurgence of local manufacturing and lowered logistics costs.
Transnet Group chief executive Portia Derby said the parastatal had a major role to play in enabling the growth and competitiveness of the local economy by pursuing a domestic manufacturing agenda. The historic lack of investment in infrastructure has had a significantly negative impact on local industry, resulting in the loss of scale and a decrease in manufacturing industry capabilities.
Transnet’s partnership with Naacam, through enterprise and supplier development, aims to develop local manufacturing capacity to supply Transnet’s core business and to reduce the over-reliance on imports.
Naacam executive director Renai Moothilal said the sector could provide guidance to the parastatal.
“Naacam has experience in implementing programmes aimed at using localisation and supplier development as a tool for increasing domestic competitiveness, especially in OEM-driven value chains. There are learnings out of the automotive sector that can benefit the Transnet logistics sector,” Moothilal said.
In order to provide the necessary financial support to the participating enterprises, Transnet has also partnered with the NEF through a 50-50 matching principle which will allow the beneficiaries to have access to an additional source of funding, while empowering them in line with Transnet’s core operations.
NEF CEO Philisiwe Mthethwa said the NEF-Transnet SMME Fund, which will operate under the administration of the NEF, will “focus on the transformation of Transnet’s value chain while positively impacting the communities in which Transnet operations are located.
“In the NEF, Transnet is assured of an institution that has distinguished itself as a catalyst across the key sectors of the economy, driving the economic empowerment of black enterprises, women, youth, township and rural communities. As with the NEF’s other enterprise and supplier development alliances, this patriotic partnership with Transnet will hinge on pursuing localisation and industrialisation through mentorship support, skills advancement, incubation and entrepreneurship training, job creation and financial management integrity for inclusive growth,” Mthethwa said.
The organisations said in the statement that qualifying companies would be selected in a “fair and transparent manner “in line with Transnet’s approved Enterprise and Supplier Development Policy”.
