433369666-The-Case-for-Investing-in-South-Africa
South Africa's investment proposal
South Africa's investment proposal
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AUTOMOTIVE INDUSTRY: EXPORT-ORIENTED, INCREASINGLY<br />
INTEGRATED IN GLOBAL VALUE CHAINS<br />
• Supported by world-class export <strong>in</strong>frastructure, <strong>South</strong> <strong>Africa</strong>’s automotive <strong>in</strong>dustry, <strong>in</strong>clud<strong>in</strong>g components<br />
manufacturers, is well <strong>in</strong>tegrated <strong>in</strong>to the value and supply cha<strong>in</strong>s of global OEMs.<br />
• Exports of motor vehicles, parts and accessories contributed 13.2% to the national merchandise export basket<br />
<strong>in</strong> 2018.<br />
• <strong>The</strong> <strong>in</strong>dustry exports to more than 150 countries, benefit<strong>in</strong>g from preferential market access such as:<br />
- Duty-free exports <strong>in</strong>to the <strong>South</strong>ern <strong>Africa</strong>n Development Community (SADC), a 16-country free trade area<br />
(FTA) with 300-million consumers;<br />
- Duty-free exports <strong>in</strong>to the European Union through the SADC-EU Economic Partnership Agreement; and<br />
- Duty-free exports <strong>in</strong>to the US due to preferential access under the <strong>Africa</strong>n Growth and Opportunity Act<br />
(AGOA).<br />
Exports of motor vehicles, parts and accessories have grown strongly over the last two and a half decades.<br />
<strong>The</strong> adoption by the government of export-oriented policies <strong>in</strong>clud<strong>in</strong>g the MIDP and APDP has been key to this<br />
growth.<br />
400,000<br />
SOUTH AFRICA’S MOTOR VEHICLE EXPORTS (UNITS)<br />
350,000<br />
300,000<br />
250,000<br />
Car Exports<br />
Light Commercial Vehicle Exports<br />
Aggregate Exports<br />
200,000<br />
150,000<br />
100,000<br />
50,000<br />
0<br />
1995<br />
1996<br />
1997<br />
1998<br />
1999<br />
2000<br />
2001<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
2011<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
2017<br />
2018<br />
Top exports of motor vehicles, parts and accessories, 2018<br />
Source (chart & table): IDC analysis, compiled us<strong>in</strong>g NAAMSA and <strong>South</strong> <strong>Africa</strong>n Revenue Service data<br />
ZAR<br />
million<br />
% of total SA<br />
merchandise exports<br />
Vehicles <strong>for</strong> transport of persons (except buses) 81 529 6.5%<br />
Motor vehicles <strong>for</strong> the transport of goods 46 136 3.7%<br />
Liquid, gas centrifuges, filter<strong>in</strong>g, purify<strong>in</strong>g mach<strong>in</strong>e 19 696 1.6%<br />
Parts and accessories <strong>for</strong> motor vehicles 9 087 0.7%<br />
Parts <strong>for</strong> <strong>in</strong>ternal combustion spark ignition eng<strong>in</strong>e 3 845 0.3%<br />
Cargo conta<strong>in</strong>ers designed <strong>for</strong> carriage of goods 2 086 0.2%<br />
Trailers and non-mechanically propelled vehicles 1 983 0.2%<br />
Other 3 451 0.3%<br />
Total motor vehicle, parts & accessories exports 167 812 13.5%