The political framework is bearing fruit | SAnews

Minister for Trade, Industry and Competition Parks Tau says under the Automotive Production and Development Program (APDP), dtic has provided key incentives and a policy framework that will help drive investment, innovation and job creation.

Tau recently spoke at the South African Car Week in Cape Town.

According to Tau, this has enabled South Africa to remain competitive internationally.

He said that since its inception in 2011, the Automotive Investment Scheme (AIS) has disbursed R20.7 billion to component manufacturers (CMs) and original equipment manufacturers (OEMs).

“AIS funding for over 150 projects has resulted in over R76 billion in investment from the 2016/17 financial year to September 2024, generating a simple investment multiplier of five.

“This means that for every R1 of incentive expenditure on the project, R5 of investment was spent. During this period, the average grant paid was 20% of the total investment amount generated by the project,” Tau explained.

In terms of transforming the sector, the Minister said that of the R15.2 billion disbursed from AIS, 50% were payments to projects outside the five major metro stations, demonstrating the significant reach of AIS in generating spatial transformation.

“In terms of ownership, R227 million has gained access to black-owned projects, representing 1% of AIS funding; 2%, amounting to R242 million, went to small, medium and micro enterprises; R3 million for youth-led projects and R7.9 million for women-led projects. This shows that the industry needs a more thoughtful approach to transformation. However, we are aware that we can do more.”

Tau said the recent announcement of the extension of APDP Phase 2 to 2035 is a clear signal of the government’s long-term commitment to the sector.

Solving the logistical challenge

Speaking at the same event as a member of the Infrastructure Investment Panel, Deputy Minister for Trade, Industry and Competition Andrew Whitfield said the Government of National Unity (GNU) Statement of Intent for 2024 listed infrastructure development as a key priority.

“The fact that we have the President’s National Logistics Crisis Committee (NLCC), established by the South African government to address transport and logistics in the country, indicates and recognizes that we have an infrastructure crisis in the country.

“South Africa has the skills and talent to meet these challenges, but skills and talent cannot exist in silos. We all need to work together to meet these challenges,” Whitfield said.

Whitfield said dtic’s primary mission, through GNU, will be to help businesses grow so they can create jobs and people can keep them.

“We must also follow President Ramaphosa’s instructions to cut red tape and develop key performance indicators that will underpin a plan that makes it easier for businesses to do business, grow and create jobs,” he said.

Whitfield said there was nothing more urgent than the unemployment crisis facing South Africa and that there was an urgent need to unlock the country’s infrastructure potential. – SAnews.gov.za