Multi-stakeholder initiative led by Automotive Industry Development Centre, Department of Small Business Development, and International Labour Organisation aims to drive inclusive, competitive, and sustainable growth in South Africa’s automotive sector.

A major step toward the future of South Africa’s automotive sector was taken this week as more than 100 key stakeholders gathered at the Automotive Supplier Park in Rosslyn for the Gauteng Automotive Industry Stakeholder Workshop. 

The event marked the launch of a feasibility study exploring the potential for establishing a dynamic, inclusive, and globally competitive automotive industry cluster in Gauteng.

The initiative is jointly led by the Automotive Industry Development Centre (AIDC), the Department of Small Business Development (DSBD), and the ���˶��� (ILO) through its Productivity Ecosystems for Decent Work (PE4DW) programme. It supports the programme’s second outcome, which seeks to address sectoral and enterprise-level constraints to productivity growth, decent work, and formalization, while ensuring long-term economic resilience and job creation.

A Collective Vision for Transformation

The workshop brought together representatives from across the automotive value chain—including Original Equipment Manufacturers (OEMs), component producers, logistics firms, small businesses, academia, government institutions, and civil society. Their shared objective: to explore how clustering can foster localisation, innovation, and inclusive growth.

A significant moment was the participation of Women in Auto SA, an organisation representing women-owned enterprises in the sector. Their contributions brought a crucial gender perspective to the discussion and reinforced the need to increase women’s representation in an industry that remains largely male-dominated.

Building a Competitive, Collaborative Future

Gauteng is home to a proud automotive heritage, contributing substantially to national GDP, exports, and employment. Yet as AIDC CEO Andile Africa noted in his opening remarks, global trends and emerging technologies demand new approaches:

An automotive cluster is more than just a geographic concentration of firms,” said Mr. Africa. “It is a collaborative platform for OEMs, component manufacturers, logistics providers, research institutions, and SMEs to unlock shared value. For a cluster to succeed, it must reflect local realities and draw on the knowledge of the stakeholders shaping the industry.”

Ms. Khomotso Ramaifo, Director at DSBD, emphasized the benefits for small businesses:

Minimum certification standards required by OEMs can help SMEs improve product quality and align with global benchmarks, allowing them to compete more effectively.

Insights from Industry Leaders

A panel discussion on industrial clustering in South Africa highlighted key success factors, including the need to:

• Define a compelling challenge or opportunity for the cluster to address;
• Clarify roles and expectations among stakeholders;
• Establish measurable outcomes;
• Tackle market access and funding limitations, particularly for SMEs.

Discussions also emphasized the importance of a just transition, integrating SMEs into new energy vehicle (NEV) value chains, supporting value chain decarbonization, and promoting productivity and decent work across the sector.

Participants agreed that public-private partnerships will be essential to sustain cluster funding and ensure long-term impact. Industry-driven initiatives that encourage shared learning and inclusive collaboration will be key to the cluster’s success.

A Call for Inclusive, Industry-Led Action

In his closing remarks, Mr. Jens Dyring Christensen, ���˶���Senior Specialist for Sustainable Enterprises, Productivity, and Just Transition, reaffirmed the ILO’s commitment to working alongside stakeholders:

This cluster must be industry-led, inclusive of small businesses, grounded in skills development, and focused on creating decent, quality jobs.

The Productivity Ecosystems for Decent Work programme is implemented by the ���˶���with support from the Swiss State Secretariat for Economic Affairs (SECO) and the Norwegian Agency for Development Cooperation (NORAD). In South Africa, the programme focuses on the automotive and leather and footwear sectors, applying a systemic approach that targets root causes of low productivity and informality at macro, meso, and micro levels. By strengthening local and national capacities, the initiative aims to foster inclusive, sustainable economic growth.