Automotive industry is crucial to manufacturing sector – Deputy Minister Masina
"At the heart of the re-industrialisation strategy is the recognition that we need to diversify our industrial base and expand the local value chain in most of our industrial exports. This means that we need to process our industrial inputs locally and work towards the export of locally-processed products as value-added goods as opposed to raw-materials,” said Masina
Masina added that the share of Africa in automotive manufacturing was very low and that the continent should begin a conversation of how best to increase the aggregate share of the industry in the continent, particularly South Africa, in the overall global output of the sector.
"This means that as government, labour and investors in the sector we need to work together to improve our industrial capacity and use our competitive advantage as a country in order to increase our footprint in the global market," said Masina
He also said the state was committed to act as a market incubator for this earmarked industrial diversification and expansion of the manufacturing sector by purchasing 80 percent local content in bus bodies.
"The South African industry is building on a solid reputation as a producer of high quality and competitive goods. Although still a small producer nation by global standards, the manufacturing sector in South Africa is increasing its rates of participation in global markets. During 2013, total export increased by 8.2 percent and it was the first year that the sector passed the R100 billion mark in exports," added Masina.
He reiterated South Africa was committed to support manufacturing in neighbouring markets to increase opportunities for component or sub-assembly packages. An example of this is the ongoing support for the development of a motor manufacturing base in Nigeria.
The South African auto-sector manufactured products contribute approximately 30 percent of South Africa’s total manufacturing output.
Enquiries:
Sidwell Medupe, Departmental Spokesperson
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
