Isuzu SA CEO Billy Tom heads AITF, calls for better Africa trade

The Automotive Industry Transformation Fund (AITF) has a new chair in Isuzu SA CEO Billy Tom, who has taken over from Dr Sizeka Magwentshu-Rensburg. Jabu Selumane remains the CEO.

The AITF was established in 2020 as a collective Equity Equivalent Investment Programme (EEIP) as defined in the BBBEE codes. The founding local OEMs are BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen.

Each allocate a percentage of their annual earnings to the fund that aims to transform the local automotive sector by offering market access, funding and business support and create thriving, black-owned automotive companies.

Whereas Magwentshu-Rensburg was an independent chair, Tom says a decision by the group CEOs was taken to create a rotational leadership seat as the interested parties to leverage on their industry expertise.

An initial R596m start-up fund was invested at the time, with targets set to create more than 90 black-owned automotive companies by 2029, and market access up to the value of R4bn.

Tom says the AITF is shooting the lights out, having set up 70 companies and market access worth R5bn thus far. He adds that the AITF has also ring-fenced R500m in reply to the new energy vehicle revolution.

Electrified mobility now stands at a three-percent market penetration, of which 85% are hybrids.

Regardless of the slow uptake of new energy vehicles, Tom says the industry needs to invest timeously in creating the support infrastructure such as chargers and components.

A further R1bn will be spent to empower more than 90 black-owned enterprises so that they can work as tier 2 and 3 suppliers, according to the chair. 

He says there’s a good story to tell, though he feels the industry is not entirely where it wants to be, and that through the coronavirus pandemic the automotive industry learnt lessons, such as the importance of localisation.

Tom says the difficulties and inefficiencies of SA ports have created a problem for sourcing vehicle parts. The ports face significant challenges, including infrastructure issues, logistical bottlenecks and security concerns.

Recently, Transnet reported a R2.2bn loss for the six months to end-September. Localisation of vehicle components will prevent the risk.

However, Tom says despite the challenges he is grateful for the commitment shown by the OEMs involved in setting up the AITF. Each of the investor brands has its own internal story of incubating black-owned businesses, and the CEO mentions a black female-owned business developed and supported through their own funds.

A supplier dropped Isuzu, and the company was approached with the opportunity. At first they supplied Isuzu SA with R40m worth of supplies, and Tom says they further developed and nurtured the firm, ensuring Isuzu’s service level agreements were met.

When the business was ready to scale up, he approached the Industrial Development Corporation (IDC) and the AITF for added funding.

“Now they will be responsible for supplies worth more than R200m,” he says.

US President Donald Trump’s trade war tariffs are expected to affect SA OEM annual turnovers.

This will mean reduced funds flowing into the AITF for the development of more than 51% black-owned enterprises and the protracted reduced spend by the OEMs in the case of increased tariffs will be felt.

Tom takes a longer view of the climate, identifying opportunities in these tough conditions. It’s an opportunity for Africa to bulletproof itself against similar upheavals by bolstering intercontinental bilateral trade agreements.

“During world crises, first-world countries tend to look after their interests first, as witnessed during the coronavirus vaccine saga,” says Tom, referring to when rich nations bought up most of the injections, and far more than they could credibly need, when less than 1% of Africa had access to the jabs.

“Around 2011, SA exported about 23,000 vehicles to Algeria. In 2025 that number has decreased to zero. Africa is a big continent that is long in need of trading with itself a little bit better,” he concludes.