AUTOMOTIVE INDUSTRY IS CRUCIAL TO MANUFACTURING SECTOR – DEPUTY MINISTER MASINA

AUTOMOTIVE INDUSTRY IS CRUCIAL TO MANUFACTURING SECTOR – DEPUTY MINISTER MASINA

The automotive industry is a crucial subsector of manufacturing and therefore a central pillar of our re-industrialization programme. This was said by the Deputy Minister of Trade and Industry, Mr Mzwandile Masina at the South African Automotive Week conference held in Midrand today. The conference was attended by more than two hundred automotive stakeholders from South Africa and other countries around the world.

“At the heart of the re-industrialization strategy is the recognition that we need to diversify our industrial base and expand the local value chain in most of our industrial exports. This means that we need to process our industrial inputs locally and work towards the export of locally-processed products as value-added goods as opposed to raw-materials,” said Masina

Masina added that the share of Africa in automotive manufacturing was very low and that the continent should begin a conversation of how best to increase the aggregate share of the industry in the continent, particularly South Africa, in the overall global output of the sector.

“This means that as government, labor and investors in the sector we need to work together to improve our industrial capacity and use our competitive advantage as a country in order to increase our footprint in the global market,” said Masina

He also said the state was committed to act as a market incubator for this earmarked industrial diversification and expansion of the manufacturing sector by purchasing 80% local content in bus bodies.

“The South African industry is building on a solid reputation as a producer of high quality and competitive goods.  Although still a small producer nation by global standards, the manufacturing sector in South Africa is increasing its rates of participation in global markets. During 2013, total export increased by 8.2% and it was the first year that the sector passed the R100 billion marks in exports,” added Masina.

He reiterated South Africa was committed to support manufacturing in neighboring markets to increase opportunities for component or sub-assembly packages. An example of this is the ongoing support for the development of a motor manufacturing base in Nigeria.

The South African auto-sector manufactured products contribute approximately 30% of South Africa’s total manufacturing output.