Did you know that South Africa’s automotive industry is a key driver of both economic growth and transformation? Through the Automotive Production and Development Programme (APDP), the government is not just building cars—it’s building a future that includes investment, innovation, and much-needed job creation across the country.
At the recent South Africa Auto-Week in Cape Town, Minister of Trade, Industry and Competition, Mr Parks Tau, highlighted the critical role of the APDP in keeping South Africa globally competitive. “Since its inception in 2011, the Automotive Investment Scheme (AIS) has disbursed R20.7 billion to component manufacturers and original equipment manufacturers,” Tau said. South Africa, now the largest vehicle producer in Africa, contributes 4.3% of its GDP through the automotive sector.
The AIS funding has had a tremendous impact. Tau explained that “from the 2016/17 financial year to September 2024, the AIS helped generate over R76 billion in investment, creating an investment multiplier of five.” For every rand spent, R5 of investment was returned to the project, underscoring the programme’s effectiveness.
What’s particularly noteworthy is the reach of this programme beyond South Africa’s major cities. According to Tau, “50% of AIS funding—R15.2 billion—has gone to projects outside the five main metros, showing our commitment to spatial transformation.” This ensures that economic opportunities are spread across the country, not just concentrated in urban hubs.
Transformation within the sector, though, still requires more deliberate action. “Out of the total R15.2 billion, R227 million was accessed by black-owned projects, while R7.9 million went to women-owned projects,” said Tau. While progress has been made, he acknowledged that “we are aware that we can do more” to broaden the reach of these opportunities. The government’s extension of APDP Phase 2 until 2035 signals a long-term commitment to this transformation agenda.
Deputy Minister Andrew Whitfield also emphasised the importance of addressing South Africa’s infrastructure challenges, which are critical to unlocking the potential of the automotive sector and the broader economy. “We have the skills and talent to resolve these issues, but we need to work together to unlock the infrastructure bottlenecks,” Whitfield said, highlighting the need for collaborative efforts.
South Africa’s automotive sector is not just about cars—it’s about growth, inclusion, and transformation. With the right support, this industry will continue to be a driving force for economic development, creating a future where all South Africans can thrive.