Chamber signs agreement with automotive component industry
The Nelson Mandela Bay Business Chamber and National Association of Automotive Component and Allied Manufacturers (NAACAM) signed a historic memorandum of understanding yesterday to advance and support the industry in Nelson Mandela Bay.
This will be done through advocacy and lobbying initiatives, and to develop initiatives that support members’ mandates and strategic objectives.
Both parties agreed to collaborate on key projects and initiatives focusing on logistics, electricity reliability, critical infrastructure, information sharing, transition to new energy vehicles (NEVs) and stakeholder management.
NAACAM will participate in the chamber’s local economy reinvention think-tank to collaborate with various engineers and innovators from a range of companies and stakeholders.
These efforts are directed at identifying opportunities across six different workstreams to retain and grow investment and employment within the local manufacturing sector.
The focus on logistics will see the parties jointly work in building stronger component industry participation in developing and supporting initiatives to improve port, rail and road infrastructure and efficiencies in key logistics nodes.
This will involve promoting the revival of the North-South Rail Corridor to improve logistics efficiencies in ferrying cargo between the Bay’s two ports and Gauteng.
They will also collaborate and work jointly to support initiatives on future growth trends affecting the automotive sector including those of new energy vehicles and green-hydrogen-based applications.
NAACAM CEO Renai Moothilal said a key component involved deep information sharing between the parties to ensure a flow of information and relevant data that could be used and leveraged in the best interests of the automotive component industry.
“With the automotive manufacturing sector globally now focused on transitioning to new energy vehicle production, the partnership seeks to jointly promote and advocate for a sustainable transition to NEVs production while ensuring producers who have typically been anchored in internal combustion type products are supported with a clear, decisive and predictable policy environment which prioritises the value coming out of automotive components manufacturers,” Moothilal said.
The partnership will place a strong emphasis on stakeholder engagement by developing a robust engagement strategy to lobby and drive public advocacy and strengthen partnerships with key stakeholders, including collaborating and supporting thought leadership platforms or events that showcase and celebrate the automotive component industry in SA.
Chamber CEO Denise van Huyssteen said that almost half of the country’s automotive supply chain production emanated from the Eastern Cape, and mostwere located in Nelson Mandela Bay.
As such, most businesses in the region whether directly automotive related or not, benefited directly or indirectly from the automotive sector.
“The signing of this MOU underpins the importance of collaboration between both parties to advance our goal of providing a strategic direction in furthering the growth of the components sector to position it for the major changes being introduced from global markets to project jobs and retain investment.
“This is critically important as our metro’s economy is centred around manufacturing, and the logistics sector which represents one of the highest cost areas for business,” Van Huyssteen said.
The Eastern Cape accounts for more than 53% of South African-produced vehicles which are exported globally.
This makes the region a major player in the vehicle manufacturing sector.
As such, the partnership will help solidify its position through targeted and strategic interventions towards positively affecting the localisation, transformation and supplier development environment in
SA, in tandem with its support for future investments in the local economy.
“By working together, the chamber and NAACAM will leverage their strengths in support of a unified vision.
“It becomes more important for all relevant stakeholders to collaborate in decision making
especially in the current economic environment to find suitable solutions to protect investments and jobs.
“Furthermore, this also allows for all concerned to find innovative ways of repositioning the sector to become more agile and competitive,” Van Huyssteen said.