Gauteng News

Gauteng Government’s Sector-Focused model yields investment returns in the automotive sector

The Gauteng Provincial Government’s automotive sector incubation programme, in collaboration with Nissan South Africa, enhances the country’s business case to produce the new generation Navara locally.

In line with President Cyril Ramaphosa’s investment and job creation drive, the Automotive Industry Development Centre (AIDC) has officially unveiled the Incubation Centre at the Nissan Assembly Plant. The facility, which will build the new Nissan Navara model in the next few months, is managed by the AIDC.

The programme, which was unveiled by Gauteng Premier David Makhura and Economic Development MEC Lebogang Maile, is projected to bring R3 billion into the SA economy annually and create 1000 new jobs in the manufacturing value chain. In preparation for the production of the Navara, R150 million has already been invested and a further R40 million has been spent towards the re-skilling and training programme.

The project was made possible by the Gauteng Provincial Government’s Department of Economic Development and the Jobs Fund. Nissan provided the land where the facility is built. The Gauteng Provincial Government’s funding, the Jobs Fund as well as Nissan SA’s commitment to the incubation project has resulted in the entry of new businesses in the sector.  Nissan’s contribution to the project was:

 

  • Zero rentals on land provided
  • Free electricity
  • Free security
  • Technical production support
  • Tooling investment

The Navara investment is an important achievement in the Gauteng Government’s objective of securing investment opportunities, thereby contributing to the establishment of a globally competitive City Region which unlocks economic development and creates much-needed job opportunities.

GGDA Group Board Chairman Ernest Mahlaule says the partnership with Nissan will take the local industry forward by ensuring emerging entities are equipped with the skills of tomorrow. He adds, “Manufacturing and production is at the brink of advancement with the focus on the 4th industrial revolution. Our training needs to be geared to tomorrow’s needs. The Navara programme will help propel us into the era in which we are investing in appropriate skills of the future”.

Since its establishment, the AIDC Incubation Centre has been a platform through which Governments integrated approach to SMME development programme has been executed and thereby opening doors into the automotive manufacturing sector for new black entrants and start-up companies.

The ultimate objective of the incubation is to increase the local content of the sector thereby increasing South Africa’s industry global competitiveness and in support of the 2035 SA Automotive Masterplan.

According to AIDC’s Chief Executive Officer-Lance Schultz, the objective is to develop small players into reputable suppliers to the automotive industry.

 “The next evolution in developing incubation programmes has dawned and the AIDC continues to pioneer localisation and SMME development in the automotive sector. Notwithstanding stringent requirements to meet quality, cost and delivery requirements to support the Nissan Navara Programme, the AIDC will ensure that suppliers in the Centre will meet these global standards into the future”.

The incubation site at Nissan’s plant currently accommodates eight new businesses at a time.

This will go a long way in supporting the automotive industry’s vision 2020 requirement for increased local content. Government’s automotive production and development programme aims to have the country produce 900 000 vehicles per annum by 2020.

AIDC’s Incubation programme aided Nissan South Africa to deliver on its long-awaited investment promise of securing Navara’s production in the country. It is the long-term development aspect initiated by Government that impressed the principals in Japan to grant Nissan SA with the rights to produce the Navara line in SA.