The role of the automotive industry in the South African economy and particularly in creating employment – has made a compelling case for the government to invest significantly to support further growth in this sector says South Africa’s Deputy President, Kgalema Motlanthe.
Addressing guests at an executive breakfast organised by the Motor Industry Staff Association (MISA) at Automechanika SA held in Johannesburg in March, Motlanthe said the current Motor Industry Development Programme (MIDP) and Automotive Production and Development Programme (APDP) that will be implemented in 2013, remain important industrial policy tools to support, promote and advance the future sustainability of the South African automotive sector.
He added that the government is alive to the need to gear its efforts to addressing some outstanding areas in the automotive sector. “For instance, despite notable successes achieved by the passenger car, medium and heavy commercial vehicle sectors, there is still a sore need to build adequate capacity in this sector. This is the area where the financial back-up from the Industrial Development Corporation (IDC), as stated by President Jacob Zuma in the recent state of the nation address, will be critical to our objective of making improvements on a broader schedule.’
He went on to say that encouraging domestic production of automotive products in South Africa will undoubtedly contribute to the creation of more jobs in our country and that as an engine of economic growth, the automotive industry will continue to enjoy considerable government support to raise growth and prosperity.