New R224 million partnership programme to drive localisation announced

Transnet and NAACAM have launched a partnership programme to support transformation in the component-manufacturing industry.

Carlos aranda SV Uq HT Vyn6w unsplash

The partnership between Transnet and the National Association of Automotive Component and Allied Manufacturers (NAACAM) also includes the National Empowerment Fund (NEF).

The five-year partnership in which Transnet, NEF and NAACAM will together implement a programme of approximately R224 million, is expected to contribute to the resurgence of local manufacturing and lowering logistics costs.

According to Transnet Group Chief Executive, Portia Derby, Transnet has a major role to play in enabling the growth and competitiveness of the South African economy by pursuing a domestic manufacturing agenda in looking to support relevant business units.

Transnet’s partnership with NAACAM - through Enterprise and Supplier Development - aims to develop local manufacturing capacity and capability in the core business of Transnet. This is aimed at increasing local content and reducing the current over-reliance on imports.

NAACAM executive director, Renai Moothilal, stated that “NAACAM has experience in implementing programmes aimed at using localisation and supplier development as a tool for increasing domestic competitiveness, especially in OEM-driven value chains. There are learnings out of the automotive sector that can benefit the Transnet logistics sector.”

In order to provide the necessary financial support to the participating enterprises, Transnet has also partnered with NEF through a 50-50 matching principle, which will allow the beneficiaries to have access to an additional source of funding, while empowering them in line with Transnet’s core operations.

“In the NEF, Transnet is assured of an institution that has distinguished itself as a catalyst across the key sectors of the economy, driving the economic empowerment of black enterprises, women, youth, township and rural communities.

“As with the NEF’s other enterprise and supplier development alliances, this patriotic partnership with Transnet will hinge on pursuing localisation and industrialisation through mentorship support, skills advancement, incubation and entrepreneurship training, job creation and financial management integrity for inclusive growth,” said NEF CEO, Philisiwe Mthethwa.

More Industry News stories

VW Polo hits the 1.5 million mark in Kariega

VW Polo hits the 1.5 million mark in Kariega

During the night shift on Monday, 19 February, the production team of Volkswagen Group Africa celebrated a milestone when the 1.5-millionth vehicle built for export in Kariega in the Eastern Cape rolled off the line.

  • 21 February 2024
Lemons 9-Hour Race roars into Cape Town

Lemons 9-Hour Race roars into Cape Town

The Lemons 9-Hour Race is set to make history in Cape Town as Africa's largest motorsport event holds its inaugural mother city event, the Mischief Garage 9-Hour.

  • 16 February 2024