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433369666-The-Case-for-Investing-in-South-Africa

South Africa's investment proposal

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78 |<br />

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%

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