Will a multibillion-rand "carrot" be enough to convince government of motor companies’ commitment to black empowerment and create a black industrialist base that government policy has so far failed to achieve? Trade & industry minister Rob Davies makes no secret of his disappointment that increased use of local components in SA vehicle manufacturing has done little for black-owned businesses. Dave Coffey, president of the National Association of Automotive Component & Allied Manufacturers (Naacam), says a study shows that out of scores of suppliers dealing directly with vehicle assemblers, only 15 are black-owned. Almost all of these provide services rather than parts. However, the reality for anyone hoping for dramatic change is that not only are SA’s vehicle manufacturers all wholly foreign-owned, but so are many of their SA-based suppliers. They are subsidiaries of multinational companies that enjoy global relationships with their customers. This is complicating government’s desi...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now