Deputy President Paul Mashatile has called on Chinese vehicle manufacturer Chery International to prioritise local suppliers and youth-owned businesses as it establishes its first vehicle assembly plant in South Africa.
Mashatile made the call on Friday during the Chery International Factory Acquisition Celebration in Rosslyn, Tshwane, where he described the investment as a vote of confidence in South Africa's economy and manufacturing sector.
The Deputy President said government expects the investment to create jobs, strengthen local supply chains and drive inclusive industrialisation.
“With the understanding that a strong automotive sector depends on a strong supplier base, Government calls upon Chery to work hand in hand with us in identifying and promoting local suppliers, especially those led by our youth.
“For it is in the strength of our supply chains that the resilience of our industry is secured, and it is in the creativity of our young entrepreneurs that the future of our economy is written,” the Deputy President said.
Mashatile said bringing township suppliers into the automotive value chain would not only strengthen Chery's operations but also extend the benefits of industrialisation to surrounding communities.
“Together as partners, we must ensure that local suppliers receive capacity building, mentorship, and market access. We should provide opportunities for youth-owned enterprises to participate in logistics, components, services, and technology.
“In doing so, we will create a value chain that is inclusive, competitive, and sustainable,” he said.
The Deputy President noted that the acquisition of the Rosslyn factory follows government's engagement with Chery during a working visit to China in November 2023 to promote South Africa as an investment destination and strengthen local automotive manufacturing.
He said the investment demonstrates continued international confidence in South Africa despite global economic uncertainty.
“It is in this context that the acquisition of the Rosslyn factory by Chery International is a powerful signal to global investors that South Africa remains a trusted destination for industrial investment.
"It is a vote of confidence in our people, our institutions, our infrastructure, our long-term future. It reinforces South Africa's role as the automotive gateway to Africa,” he said.
Mashatile highlighted the automotive industry's significant contribution to the economy, saying it supports hundreds of thousands of jobs while driving exports and developing technical skills.
He also welcomed the company's commitment to new energy vehicles, saying South Africa must keep pace with global shifts in automotive manufacturing to remain competitive.
“We must also bear in mind that the global automotive industry is shifting rapidly towards new energy vehicles (NEVs). We stand to lose important export markets by 2035 if there isn't a transition in South Africa. We appreciate that Chery is leading this charge in Africa with NEV options across its range,” he said.
The Deputy President said government remains committed to creating an enabling environment for investment while balancing foreign investment with measures that protect and strengthen domestic manufacturing.
He stressed that industrialisation must directly benefit communities surrounding manufacturing hubs, including Mabopane, Soshanguve, Ga-Rankuwa and Hammanskraal.
“This factory is therefore a beacon of hope, skills and future opportunities for the youth of Mabopane, Soshanguve, Ga-Rankuwa and Hammanskraal,” he said.
Mashatile also urged greater investment in skills development, apprenticeships and technical education to prepare young South Africans for advanced manufacturing and technology-driven industries.
Concluding his address, he reaffirmed government's commitment to attracting investment and growing the economy.
“As I mentioned when I met with Chery Automobile's leadership in China a week ago as part of my working visit to enhance bilateral trade and industrial investment, South Africa is open for investment, ready for innovation, and committed to building an economy that offers opportunities for all.
“Together, we can shape a future defined by growth, industrial excellence, and shared prosperity,” he said. – SAnews.gov.za
