Localisation of auto sector critical to job creation, says Masina

11th December 2014 By: Natalie Greve - Creamer Media Contributing Editor Online

Localisation of auto sector critical to job creation, says Masina

The localisation of automotive component manufacturing remained key to the creation of sustainable jobs in South Africa, and the Department of Trade and Industry (DTI) would continuously support industries that created such local employment opportunities, Trade and Industry Deputy Minister Mzwandile Masina said during a visit to automotive plant companies in Brits, in the North West.

He added that it was important for the DTI to interact with industries to create a dialogue that would enable government to expand on the current support that they offered to various sectors of the economy.

“It is also imperative for us to support the automotive sector, which is one of the most critical sectors that drives sustainability, job creation, competitiveness and all-inclusive growth,” noted Masina. 

He further pledged that the DTI would create opportunities for localisation, as it was one of the most critical policies currently being implemented by government, and also urged the automotive sector to take part in the trade missions undertaken by the department to promote exports.

“Localisation can open doors to previously disadvantaged entrepreneurs who can then create jobs in their communities,” he commented during a visit to Pasdec Automotive Technologies and Inergy Automotive systems – both of which had received funding from the DTI’s Automotive Incentives Scheme to the tune of R3.7-million and R9-million, respectively.

The visits formed part of the department’s ‘Taking the DTI to the Factories campaign’, which was aimed to offer the political leadership of the department an opportunity to interact with directors of companies that had received funding to assess the impact of the department’s financial support.

Inergy Automotive systems country director Arthur Mtombeni welcomed the DTI’s initiative to engage the automotive sector, as it was one of the key job drivers in the country.

“I am confident that these engagements will bear fruits in the future, especially when the company wants to expand their productions with assistance from government.”