Nokukhanya Mntambo23 August 2024 | 5:39

Trade and Industry Minister Tau vows to intensify SA’s localisation drive

Tau said automaker Toyota and Thailand’s Ogihara investing almost R1.2 billion into KwaZulu-Natal's booming automotive sector is aimed at enhancing the country’s localisation drive in a bid to give struggling industries a lifeline.

Trade and Industry Minister Tau vows to intensify SA’s localisation drive

Parks Tau. Picture: Instagram

JOHANNESBURG - Minister of Trade and Industry Parks Tau has vowed to intensify the country’s localisation drive as government puts the automotive masterplan into motion.

This followed automaker Toyota and Thailand’s Ogihara investing almost R1.2 billion into KwaZulu-Natal's booming automotive sector.

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The investment is set to see the construction of a new component manufacturing plant at the Dube Tradeport in Durban, creating more than 200 jobs.

Tau said the latest investment into the auto sector was aimed at enhancing the country’s localisation drive in a bid to give struggling industries a lifeline.

However, Tau’s reassurance followed warnings by the World Bank that government’s move to drive industrialisation through localisation could limit foreign investment and reduce the competitiveness of South Africa’s exports.

This was part of the World Bank’s recent report criticising South Africa’s trade policies.

It said that over the past 15 years, South Africa had lost its economic growth momentum, adding that some of the country’s policies had done little to avert economic challenges.

Despite the report, Tau said the latest investment remained key to an inclusive economy and job creation.