R6 billion Automotive Industry Transformation Fund
The National Association of Automobile Manufacturers of South Africa [NAAMSA] recently confirmed the launch of a R6 billion Automotive Industry Transformation Fund [AITF] designed to support black participation in the automotive industry supply chain.
The fund’s mission will be to accelerate the empowerment of black South Africans within the auto sector; upskilling of black employees and wannabe auto entrepreneurs; expansion of black-owned dealerships and authorised repair facilities and workshops; substantially increase the contribution of black-owned automotive component manufacturers within the
automotive supply chain; and above all, create meaningful and sustainable employment opportunities for young and female black South Africans.
Toyota is one of the major Original Equipment Manufacturers [OEMs] that will be involved in this project, which is designed to seed, develop and grow black-owned companies within the automotive supply chains. The unique feature of the Auto Transformation Fund is that it is powered, supported and funded by the seven OEMs that will directly use the services of black-owned businesses to grow and deepen transformation across the entire auto value chain. Opportunities for private capital and other government initiatives to co-invest will accelerate and create greater momentum in the automotive sector, which already contributes approximately 6.9% to the country’s gross domestic product and accounts for 30.1% of the country’s overall manufacturing output.
The Automotive Industry Transformation Fund will be independently incorporated and registered as a non-profit company and will have its own board of directors and executive management team in line with the Companies Act in order to enhance transparency and good corporate citizenry.