Delegates at Automechanika Johannesburg heard today that Gauteng and the City of Tshwane are compelling automotive investment destinations.

Siphiwe Ngwenya, CEO of the Gauteng Growth and Development Agency, outlined the advantages at a breakfast event arranged by the AIDC (a Gauteng Growth and Development Agency subsidiary) in partnership with City of Tshwane. He addressed Automechanika delegates from a number of countries, various tiers of government and industry stakeholders.

Ngwenya said, “Certainty is the bedrock of investment. Both national government and business have rallied behind South Africa’s multiyear development blueprint — the National Development Plan – which provides long term policy certainty for investors. ”

Gauteng is one of three major automotive manufacturing regions in South Africa. “Gauteng hosts four of the eight local vehicle assemblers namely Nissan SA incorporating Renault, BMW SA,  Ford Motor Company of Southern Africa and TATA Motors. It also hosts some 180 automotive component manufacturers who produce a wide range of products for both the domestics and export market,” he said.

There are well-established downstream services and support industries in Gauteng, on which the automotive industry relies.  “All major assemblers who have their production facilities outside the province maintain their corporate head offices within Gauteng,” explained Ngwenya.

A number of initiatives have been implemented to boost the automotive industry in Gauteng. “Potential automotive investors should note that Gauteng is keen to attract investment partners who are also capable of providing clean automotive technologies such as electric, gas and bio-fuel powered vehicles, in line with the Gauteng Employment Growth and Development Strategy (GEGDS). We believe that there is huge untapped potential in this sector,” he said.

Ngwenya also indicated that the Gauteng Investor Business Centre would be launched soon as a one-stop facility for investors to make it easier for investors to do business in Gauteng. “Once it is fully operational, the Gauteng Investor Business Centre will serve as a single interaction facility that will allow investors to lodge information and queries with one body to assist with business approval requirements. It will therefore serve as a focal point for Gauteng’s collaborative approach to promoting FDI, export and business immigration and attraction,” he said.

Barlow Manilal, AIDC’s CEO, said that the Gauteng provincial government had forged strong partnerships with OEMs which have had a massively positive impact on the sector and encouraged potential investors to contact the AIDC.

“We are ready to provide assistance to automotive investors on the various national and provincial incentive schemes that are available and would be happy to facilitate introductions with OEMs, component manufacturers and automotive suppliers across all tiers. We have developed strong working relationships with industry bodies and will continue to look for ways to grow automotive investments and increase the competitiveness of the sector,” he concluded.