Motor vehicle mass production is complex. It requires advanced infrastructure delivery systems, information and communication technology, bulk services and logistics to facilitate trade.
The National Association of Automobile Manufacturers of South Africa (Naamsa) says the implosion of South Africa’s freight and rail network has cost the economy almost 5% in gross domestic product (GDP) losses, adversely affecting the livelihoods of people working in various industries.
Highlighting the crisis, Naamsa pointed to the mining industry having lost more than R50 billion in revenue. It warned that the automotive sector must be spared the same fate by seeing concrete official action being taken.
“Infrastructure development is one of the key pillars of the South African Automotive Masterplan 2035,” said Naamsa in a statement. “Therefore, establishing an Infrastructure Finance and Implementation Support Agency, as announced in the recent medium-term budget policy statement, is welcomed.
“However, it will be important for the work of the new agency to complement the already existing Presidential Infrastructure Coordinating Commission Council, which is currently receiving public comments on the draft version of the Freight Logistics Roadmap in South Africa.”
South Africa’s vehicle exports are on the rise. Naamsa reported a 39.5% increase in October 2023 compared to exports in October 2022. Vehicle exports for the year to date are 12.7% ahead of the same period last year.