The AIDC EC engaged the automotive sector at a special meeting this morning to share key insights that will drive growth and the achievement of specific targets outlined in the South African Automotive Masterplan.
Following the AIDC EC’s AGM yesterday, today’s stakeholder briefing re-inforced a strategic direction taken by the organisation, an implementing body of government’s industrial strategy. In October last year the AIDCEC unveiled a new strategy which is closely aligned with the six pillars of SAAM2035.
“The briefing was an account to stakeholders of progress on our strategy which was introduced to industry this time almost precisely a year ago”, said AIDC EC Board Chair Weza Moss. “This kind of personal feedback is in line with the standards of governance and accountability the AIDC EC has set itself,” Moss said.
“The briefing was also aimed at moving the Eastern Cape’s supply chain towards an approach that is essential to growth, where this is measured by the attainment of targets set in the SA Automotive Masterplan 2035 (SAAM2035),” he said.
SAAM 2035 envisages vehicle production and employment in the sector to double in the next 15 years.
Two key opportunities for the sector were addressed at the briefing; Global trade, particularly into Africa and the development of Skills to capitalise on radically shifting manufacturing process and materials.
Dr Martyn Davies, the Managing Director of Emerging Markets & Africa at Deloitte and Professor Chris Adendorff, a futurist at the Nelson Mandela University and member of the 4ir Presidential task team, addressed the two issues respectively.
AIDC EC CEO Hoosain Mahomed said a push from the Association of African Automotive Manufacturers and others to develop a regional manufacturing supply network in Africa, which was key to job creation and economic growth on the continent, created fresh opportunity for South African manufacturers.
“This drive for a regional manufacturing capability attached to the recent Free Trade Agreement of African nations, opens up a significant potential market,” Mahomed said.
He said the development of advanced manufacturing skills, which “foresees the major technology disruptions, that will impact automotives” was a priority of the AIDCEC.
Above its standard activities the organisation has prioritised several high impact projects to make a significant and tangible impact on the goals set out by SAAM2035.
Extensive collaboration and partnership with industry and government has led to the development of a SMART Industrial Academy in Port Elizabeth and Automotive & Engineering Incubator in East London. The most recent project is a Localisation Supermarket – a repository, in partnership with ECAIF (Automotive Industry Forum Eastern Cape) of currently imported parts, for which local industry can quote on producing.
Eastern Cape Department of Economic Development Environmental Affairs and Tourism MEC Mlungisi Gerald Mvoko said the Province’s collaboration with the AIDC and industry, including the Eastern Cape Automotive Industry Forum (ECAIF) was “paying dividends”.
“The Smart industrial academy will include a smart factory, the factory of the future and will drive industry 4.0 nationally and into Africa from its base within Nelson Mandela Bay,” he said.
“The Smart factory will be used to create awareness, training and development to SMMES and youth in particular.”
“This will also produce opportunities for skills development within the region with a focus on equipping both current and future workers with the competence and skills needed to work in a smart industry,” Mvoko said.
Moss, said the company’s industry support programme was in line with Eastern Cape Province’s industrial policy and a response to industry.
“The Academy and its satellite – the Automotive and Engineering Incubator in East London, earmarked for completion in 2022, will address skills development, supplier development and Enterprise Development, underpinned by the Localisation Supermarket feeding directly into SAAM2035 goals.”
“All three projects are aimed at among others, equipping black suppliers with the opportunity, skills and partnerships, including access to funding agencies like the ECDC and IDC,” Moss said. “This will enable them to more easily access the automotive supply chain, which has stringent quality and technical certification requirements,” he said
“It is critical that the South African automotive industry improve its inclusiveness by supporting the development of 2nd and 3rd tier Black-owned automotive component and associated materials manufacturers.
“A reasonable target for the South African automotive value chain, according to the SAAM2035 report, is to increase the contribution of Black-owned suppliers’ automotive GVA within the economy to 25% of the Tier 2 and Tier 3 total.
“Every effort must be made to attain this target, he said. “If we do an additional R68bn in economic gross value added (GVA) will be injected into the economy, doubling the present impact of the automotive industry on South Africa’s economy and creating an additional 49 000 jobs,” Moss said.
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