Automotive industry continues to reflect power of good industrial policy in South Africa,Trade Minister
The automotive industry in South Africa has continued to reflect the power of combining good industrial policy and foreign direct investment and it remains the backbone of the country’s industrialisation drive.
This was said by the Deputy Minister of Trade and Industry, Mr Fikile Majola during the opening of Bosal South Africa’s R30 million Emission Control Systems at its Koedoespoort plant in Pretoria.
Majola said that the launch of the new plant signalled the journey of Bosal’s investment in South Africa. He added that the Department of Trade and Industry (the dti) and National Treasury were considering various internal proposals relating to driving the steel and poultry industries.
“Manufacturing-driven growth has the highest impact on job creation. Furthermore, with its linkages throughout the economy the country’s automotive sector is the driving force behind exporting of vehicles and automotive components to world markets. In 2018 the export of automotive products reached a record amount of R178 billion pointing to 14% of all exports. As the largest manufacturing sector in our country, vehicle and component production accounted for 29.9% of the country’s manufacturing output in 2018. While the automotive industry’s contribution to the Gross Domestic Product stood at 6.8%. In November last year Cabinet endorsed the South African Automotive Masterplan to boost the 2035 Vision for the achievement of a globally competitive and transformed industry creating prosperity for industry stakeholders and broader society,” he said.
The Minister also pronounced that exports continued to be a focus and a priority in order to grow South Africa’s economy.
“Of the 610 000 vehicles assembled in SA in 2018 more than 350 000 were exported to more than 150 destinations. In the light of the above there is a need to increase volumes by promoting the regional integration. The African Continental Free Trade Area (AfCFTA), the game-changing economic flagship project of the African Union must tell us to enable our common industrialisation. The South African companies have to strengthen their capacity and realise the opportunities created by the AfCFTA in order to benefit from the integrated economy of the continent. As government we are pleased that in establishing this facility local content will increase and new jobs will be created,” said Majola.