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The industry's potential has been realized as a value-adding player in the global arena and it increasingly make sense for foreign companies to invest in South Africa and export. New markets are being entered, new products are being exported and opportunities into the United States and Europe, in terms of AGOA and the SA-EU free trade agreement, are being capitalized on.
As Africa's premier automotive market, SA's automotive industry is a source of national pride and sustenance. It is the leading manufacturing sector in the SA economy and with its 5.7% share it is the third largest contributor to the GDP, after mining and financial services. Automotive industry technologies are embraced in a range of various partnerships with foreign companies. To accommodate this and other high technologically advanced sectors, SA has one of the best infrastructure and service industries among developing nations, particularly in roads, telecommunication, harbors, banking systems, insurance and shipping.
Component Exports
Component exports increased by 47.6 % from R12,6 billion in 2000 to R18,6 billion in 2001 and is forecast to increase to R24.5 billion in 2002. Catalytic converter exports now comprise 48,4% of total automotive component exports. There are approximately 250 first tier suppliers and in excess of 300 second and third tier suppliers operating in SA. Component manufacturers, using SA's competitive advantages, seek contact with outside partners for market access, technology, process know-how, production rationalization and other joint venture benefits. The major operational strengths identified in the domestic market are the competitive manufacturing costs, the ability to manufacture to the highest quality specifications and the technological competence.
With its 3,000 kilometers of coastline and 7 commercial ports, SA has by far the largest and best equipped network of ports in Africa and is able to function as a hub for commercial traffic emanating from and destined for Europe, Asia, the Americas as well as the east and west coasts of Africa.
With the biggest rail service, the largest airline and the most developed road infrastructure in Africa, SA is also regarded as the gateway into the continent.
For more information on doing business in SA and other enquiries, call us at +1.917.340.8987 USA, +27.82.420.4260 RSA or email info@azaniapr.com
Source: The Department of Trade & Industry