A key challenge facing the automotive supply chain is the cost of logistics. Extensive lead times coupled with the domestic reality of inefficiencies, fuel costs, and poor infrastructure presents a scenario that inhibits South Africa’s ability to compete globally. The AIDC’s Special Programmes Department, therefore, focuses on supply chain development and logistics to develop state-of-the-art solutions, tailored specifically to address the needs of the South African automotive industry.
This is achieved through focused collaboration between Government and the automotive industry. The Gauteng-based industries are constantly competing against the coastal region provinces. On the other hand, the Province is ideally positioned to access and service the needs of the African market, more specifically the South African Development Community (SADC).
Another key focus is on strategic infrastructure, which aims to provide infrastructure that enhances the supply chain such as the construction/development of supplier parks; and to enhance the operational efficiency of existing, predominantly Government owned, infrastructure. Projects currently initiated by the Special Programmes Department include:
• the establishment of the Tshwane Automotive City Project Management Office,
• the Nissan SA Investment Support Programme,
• the LPG Minibus Taxi Conversion project addressing the Province’s “Green Agenda”, and
• Workhelp Call Centre.
Such developmental initiatives enhance South Africa’s supply chain nationally through improvement of supply chain flexibility, reduction of logistics and associated costs, as well as increase the manufacturing sector’s responsiveness, whilst attracting Foreign and Domestic Direct Investments.