Feb 10, 2025 Jabulani Selumane, AITF, Automotive Industry Transformation Fund, Naamsa, the Automotive Business Council, National Association of Automotive Componentand Allied Manufacturers (NAACAM),
Automotive Industry leaders emphasise value in growing localisation and transformation in South Africa
Amid the Department of Trade, Industry and Competition’s (the Dtic) recent proposal to
establish a centralised R100 billion transformation fund – highlighted by President
Ramaphosa in his 2025 State of the Nation Address – automotive industry leaders have
reaffirmed their commitment to the AITF as the sector’s key transformation vehicle. Naamsa, the Automotive Business Council, and the National Association of Automotive Componentand Allied Manufacturers (NAACAM), noted the importance of localisation and
transformation in driving investment, promoting economic inclusion, creating jobs, and
positioning South Africa as a globally competitive automotive market that actively contributesto the country’s sustainable development.
Under the leadership of CEO Jabulani Selumane, the AITF will approve additional funding
this year, with 30% dedicated to women-owned businesses. This expansion will support new beneficiaries, drive job creation and strengthen local manufacturing. The fund also aims to enhance skills development by supporting graduate placements within beneficiary companies. “Our work is firmly aligned with the SA Automotive Masterplan 2035, which seeks to position South Africa as a globally competitive and transformed industry,” said Selumane. “Transformation is about more than compliance – it’s about empowering entrepreneurs, women and youth to take ownership in a sector that is critical to South Africa’s economy.”
As South Africa’s leading transformation fund for the automotive industry, the AITF remains focused on supporting black-owned component manufacturers to meet APDP 2 localisation targets. The fund’s vision extends beyond traditional funding support – it is actively preparing South African suppliers for new energy vehicle (NEV) production, ensuring long-term competitiveness in a rapidly evolving global market.
Renai Moothilal, CEO of NAACAM, acknowledged the AITF’s pivotal role in strengthening
South Africa’s localised automotive value chain through strategic partnerships with suppliers, global stakeholders and educational institutions. He also noted the need for further clarity on the proposed centralised transformation fund by the Dtic. “We appreciate the Dtic’s efforts to boost trade, investment and transformation across
industries,” said Moothilal. “However, it’s essential that existing sector-specific mechanisms – such as the AITF and company specific supplier development activities – are notdisrupted. We would like to see a scaling up of value adding localisation and procurement. Integrating a greater number of component manufacturers into the AITF would benefit the sector.”
Since its establishment in 2020, the AITF has invested R596 million into South Africa’s
automotive sector, supporting 67 black-owned businesses – with over 30% of funding
directed to women-led enterprises. Looking ahead to 2029, the fund aims to increase its
beneficiary base to 90 enterprises, while strengthening Tier 1 and Tier 2 supplier
participation.
Mikel Mabasa, CEO of Naamsa, reaffirmed the AITF’s critical role in securing the future of
South Africa’s automotive manufacturing sector: “The AITF’s track record is evident and well-documented. With the planned additional funding in 2025, we will expand opportunities for black-owned suppliers, fostering sustainable growth and transformation. The industry commends Minister Parks Tau for his unwavering dedication to accelerating transformation across various industries, regardless of publicly expressed concerns from other sectors of the economy with the proposed mechanism of achieving this strategic imperative. In our case, it is crucial to emphasise that the Dtic’s proposed transformation fund should not replace the AITF or undermine the progress we have made in the recent past. Instead, this new fund should serve as a complementary and enhanced resource to support our industry’s existing efforts.”
Mabasa also echoed the concerns raised by Andrew Kirby, CEO of Toyota South Africa
Motors, at the recent State of the Motor Industry (SOMI) address: “We are already witnessing signs of de-industrialisation as vehicle sales of fully-built imported keep rising, surpassing locally manufactured models. To protect our manufacturing base, South Africa must prioritise increasing local content, preserving jobs and bolstering our
local supplier base. This is the opportune moment to unite and strengthen the AITF’s role in catalysing transformation – not to rewrite the progress we have achieved.”
Founded by seven leading automotive OEMs – BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen – and now open to component companies as an avenue for APDP requirements – the AITF continues to set the standard for inclusive growth and
transformation. By providing funding, market access and business development support, the fund has played a pivotal role in fostering black entrepreneurship across the automotive value chain.
Through targeted investment and strategic collaboration, the AITF remains committed to
economic empowerment, job creation and positioning South Africa’s automotive sector as a truly global contender.
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