The Automotive Industry Transformation Fund (AITF) has since its inception in 2020 invested R596-million in 67 companies across the automotive value-chain, says CEO Jabu Selumane.
“Our goal is to support 90 companies by 2029, and we are well on our way to achieving that.”
Around 30% of the funding has been allocated to women-owned businesses.
The AITF was founded as a collective equity-equivalent investment programme by vehicle manufacturers BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen.
The aim was to stimulate transformation in the automotive sector by offering market access, funding, and business support to black-owned companies, from panel beaters and car dealerships to component manufacturers.
Despite the challenges posed by a sluggish economy and limited market growth, Selumane says the AITF remains committed to helping black-owned businesses.
“Our entrepreneurs are entering a competitive landscape, and while the pie may not be growing significantly, we are ensuring they have the tools and support to claim their share.”
In response to the unique needs of the sector, the AITF has diversified its financial offerings by introducing long-term funding, equity-like investments and preferential loans.
“We are removing the traditional barriers that have kept many black entrepreneurs from accessing the funding they need.
“Our aim is to provide low-risk, flexible financing that aligns with the realities of the automotive industry, so our beneficiaries can focus on growth without being weighed down by financial strain.”
Selumane says the fund is also expanding its focus beyond the original seven vehicle manufacturers to include Tier 1 component manufacturers, as well as the opportunities created by new-energy vehicles, such as charging infrastructure and battery manufacturing.
Some of the AITF beneficiaries, to date, include Steelbest Manufacturing, which specialises in the production and supply of steel products and components for the automotive industry.
The company currently supplies cam carriers, water pump components and lower support brackets to Volkswagen’s production plant in Kariega, housing components to BMW Rosslyn Plant, and base plate components to Ford’s plant in Silverton.
EE Quality Solutions supports Mercedes-Benz’s production plant in East London by providing picking and packing services for steering racks and shock absorbers in line with production cycles.
Anax Logistics provides fleet solutions within the logistics, automotive and transportation sectors.
Selumane invites entrepreneurs active in the automotive industry to apply for funding and support.
Edited by: Creamer Media Reporter
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