Cabinet approves extension of automotive incentive programme
Car makers have invested billions of dollars to upgrade factories to supply the export market from SA, Africa’s biggest car-making hub
The cabinet has approved the extension of the Automotive Production and Development Programme, with amendments, from 2021 to 2035.
The plan seeks to provide stability for one of SA’s main manufacturing sectors, in which car makers have invested billions of dollars to upgrade factories to supply the export market from SA, Africa’s biggest car-making hub.
Trade and industry minister Rob Davies plans to hold a media conference on Friday to reveal more details of the amended plan.
The programme supports the South African Automotive Masterplan (SAAM), which focuses on six areas: local market optimisation; regional market development; localisation; infrastructure development; industry transformation; and technology and associated skills development.
The cabinet said in a media statement on Thursday that the amendments to the programme “seek, among other things, to encourage higher levels of local value addition to create more opportunities for additional employment. Monitoring and evaluation of the programme and related industry trends are further enhanced to ensure progress towards the SAAM vision and objectives”.