According to the KPMG Global Automotive Executive Survey 2014, South Africa was rated the 5th most likely destination for automotive investment by the 200 executives who participated.
43% of BRIC (Brazil, Russia, India and China) based executives and 30% of Triad executives, comprising Japan, Western Europe and North America said they plan to ‘begin’ or ‘increase’ their investment in South Africa.
Even though respondents excluded South African executives, South Africa ranked only behind its BRICS partners as the most targeted investment destination.
While it is perhaps unclear whether the results are positive or negative from a South African perspective, what is clear is: if not explosive international interest, then surely piqued curiosity of South Africa as manufacturing location is a reality.
That Interest is largely driven by rapidly developing African economies and markets, which has rescued South African manufacturers from the impact of the economic crisis in the EU.
National Association of Automobile Manufacturers of South Africa (NAAMSA), Executive Director, Norman Lamprecht confirmed that “Africa as a market had compensated for the decline in vehicle demand from the EU, and that Africa was a key part of NAAMSA’s strategy.”
The leading UK auto sector trade association, the Society of Motor Manufacturers and Traders Limited (SMMT) says it too is supporting “an increasing number of UK vehicle manufacturers, component and aftermarket suppliers who are avidly seeking opportunities in Africa.
South Africa has long been seen by many UK companies as “providing the largest immediately available market and easiest route into the only significant automotive manufacturing centre and supply chain cluster in Africa,” says SMMT International Head, David Croxson.
To underline the point, patrons of South African Automotive Week, billed by NAACAM as the continent’s premier automotive manufacturing related tradeshow, say international interest in the trade platform set for October at Gallagher Convention Centre, is at a record high.
“Serious buying delegations, some supported by their governments, have confirmed visits early to South African Automotive Week with the view to establish trade,” Houdet said.
These included the UK, the US, Poland, Hungary, Czech Republic, Slovenia, Malaysia, Iran, Taiwan, China, Namibia and Lesotho.
Representatives are expected from more than 20 countries.
“That Johannesburg is a direct flight from most countries in the world, certainly helps incentivise trade travellers, says Project Director Andrew Binning.
Croxson says the SMMT is recruiting suitable British companies to attend and exhibit as a UK Pavilion at South African Automotive Week.
“The programme of seminars, presentations, workshops, match-making programme and three day exhibition provide excellent opportunity to network with the leading figures in the African sector and to showcase UK companies alongside other global companies who see Africa as providing sustained market growth.
Croxson said South Africa was an increasingly important contact point for British companies.
“Historically, SMMT has supported UK interest in North Africa, particularly Egypt, Morocco and Algeria with trade missions and participation at selective national industry events. However, the unsettled economic situation in some of these markets following the Arab Spring has unfortunately dampened enthusiasm somewhat and many UK aftermarket companies are relying on contacts made through Dubai to further develop routes into that area.”
“The developing opportunities in sub-Saharan countries are also resulting in increased UK participation at tradeshows in Kenya and Tanzania in April and May, Croxson said.
The British Industry was following developments in Africa, carefully, he added.
“SMMT has long-standing close and valued connections with colleagues in NAAMSA and NAACAM and is also following, with interest, the early endeavours of the African Automotive Industry Alliance to promote the development of African countries’ automotive industry clusters and to co-ordinate the interests of both vehicle manufacturers, suppliers and aftermarket in Africa. There is also work being undertaken on the harmonization of standards and regulations and to develop relevant initiatives for research and development – all areas in which UK companies have the resources and experience to assist and support the continuing growth of the burgeoning auto sector in Africa.”
The South African Automotive Week, as the industry’s premier gathering and showcase of automotive manufacturing, takes place at Gallagher Convention Centre from October 13-17, with the support and endorsement of the Automotive industry development Centre (AIDC), National Association of Automobile Manufacturers of South Africa (NAAMSA), The National Association of Automotive Component and Allied Manufacturers of South Africa (NAACAM), the Retail Motor Industry Organisation and the South African Department of Trade and Industry.
Read more on MyJHB.
Join the fun: Add Your event | Submit a Press Release | Add your listing.
