The decision by multinational automotive manufacturer Ford to commit $1bn to SA is proof that with the right policy and attractive industrial incentives, we can attract manufacturing activities and stimulate job creation.
Last year was incredibly disruptive to organisations whose supply chains were heavily geared towards low-cost imports from China and East Asia. As various borders were locked down and global trade was affected, countries and organisations who did not have local manufacturing capacity found themselves wanting.
In the case of Ford, the company is investing in the Tshwane automotive SEZ. Industry feedback suggests other Ford suppliers are likely to follow in its footsteps. The drive for local and transformed suppliers led to the establishment of the Automotive Industry Transformation Fund in 2019, a R6bn equity equivalent programme and the commenced operationalisation of the fund through the appointment ofin 2020, who will lead the transformation of the auto sector and its value chain.