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Deeper localisation on the cards for South Africa’s supply base

For South Africa’s automotive supply base, it is not only about luring new Tier 1s into the market, but also strengthening the value chain – right through to Tier 3s and material suppliers. By Freddie Holmes

With the South African market making a concerted effort to ramp up domestic vehicle manufacturing, there are calls for the supply chain to receive the same attention.

The government has been incentivising vehicle manufacturers to set up local operations, and to some success. However, efforts to ensure suppliers are drawn in locally have not quite hit expectations. For the last few years, the South African automotive supply base has been in ‘maintenance mode’, according to Renai Moothilal, Executive Director of the Gauteng-based National Association of Automotive Component and Allied Manufacturers (NAACAM).

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