Government’s new automotive industry support scheme will be presented to Cabinet in March, says Trade and Industry Deputy Minister Bulelani Magwanishe.
However, he tells Engineering News that it “must not be assumed that Cabinet will endorse it immediately – once they endorse it, we will proceed”.
The new incentive scheme, often referred to as the Automotive Masterplan, will replace the current incentive scheme, the Automotive Production and Development Programme (APDP), set to end in 2020.
Among other measures, the APDP provides manufacturers with incentives to produce larger volumes of vehicles per year, as well as for investment in capital equipment.
Magwanishe says additional details pertaining to the masterplan and associated support “will be announced in the near future, following Cabinet’s approval”.
“It is our aim as government to continue providing long-term policy certainty for investors in the automotive sector so that we may achieve the objective of increased production volumes, improved local value addition, and visible transformation across the value chain.
“The central fact is the absolute certainty that government will continue to prioritise long-term policy certainty for investors in the automotive sector.”
Magwanishe makes it clear that there will be a strong focus on empowerment in the new programme.
“It is imperative to facilitate effective transformation across the value chain in areas such as dealerships, panel beaters, and mechanical workshops.
“While notable progress can be seen regarding compliance with empowerment legislation, I am of the view that more can still be done.”