Johannesburg, South Africa, June 6, 2022—To support the growth of South Africa's automotive sector, IFC has partnered with the National Association of Automotive Component and Allied Manufacturers (NAACAM) to develop a database to help local parts makers more easily meet the procurement needs of global car manufacturers.
Through the partnership, IFC will help NAACAM design and develop an online platform where local component manufacturers can track and respond to the inventory needs of original equipment manufacturers (OEMs), manufacturers whose goods are used as components in the products of another company, which then sells the finished item to end users.
Once launched, the database should more closely link car part buyers with suppliers, supporting business opportunities for local manufacturers and encouraging investment into the sector.
As part of efforts to deepen local supply chains and drive economic growth, the South African Automotive Masterplan (SAAM) aims to increase the market share of local component manufacturers in its automotive sector by about 21 percent to 60 percent by 2035. The new partnership closely aligns with the SAAM.
"NAACAM members are heeding the call to deepen localisation. This not only delivers much needed employment and other economic benefits, but also reduces suppliers' risks as they become less reliant on imported components and contribute to greater stability in local OEM value chains," said Renai Moothilal, NAACAM Executive Director.
"South Africa's automotive sector is a key catalyst for job creation and economic growth in the country. IFC is pleased to partner with NAACAM to develop a platform that will lead to more business opportunities for local component suppliers and that will facilitate the transfer of technology, competencies and skills from global manufacturers to local suppliers," said Adamou Labara, IFC's Country Manager for South Africa,
The partnership agreement was signed in the presence of automotive industry stakeholders at battery manufacturer Auto-X's Germiston facility in Johannesburg.
Through the partnership, IFC will also provide local component manufacturers in South Africa with capacity building services and access to peer learning opportunities from countries advanced in auto-parts manufacturing.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About NAACAM
NAACAM is recognised as the voice of the South African automotive component industry both domestically and internationally. As a member driven organisation NAACAM is at the forefront of industry leadership, representation, and stakeholder engagement for automotive component manufacturers. NAACAM devotes many resources towards positively impacting the localisation, transformation, and supplier development environment in SA. For more information, visit
https://naacam.org.za/
