saaw update
South Africa under the global
spotlight
South Africa, according to the KPMG Global Automotive Executive Survey 2014, was rated as the fifth 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.
E
ven 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,’’ says Robert
Houdet, executive director of NAACAM.
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 says
South Africa is 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 6