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South African Business 2018 edition

Welcome to the sixth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. Visit www.globalafricanetwork.com for more business and investment news, opportunities and events.

Welcome to the sixth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za.

Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties.

South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com.
First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za

Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties.

South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. Visit www.globalafricanetwork.com for more business and investment news, opportunities and events.

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SPECIAL FEATURE<br />

Automotive opportunities in Africa<br />

The <strong>African</strong> Association of Automotive Manufacturers chairperson Thomas Schaefer (CEO<br />

of Volkswagen SA) explains why new <strong>African</strong> markets are vital for growth.<br />

What are the primary goals of the AAAM?<br />

The AAAM was founded with a strategic view<br />

regarding all <strong>South</strong> <strong>African</strong> original equipment<br />

manufacturers (OEMs), namely, that Africa is super<br />

important for our future. We need Africa so that<br />

<strong>South</strong> Africa can thrive. The AAAM is for the industry<br />

to say how can we work with Nigeria or Kenya for<br />

the good of both countries.<br />

Is the intention to set up full-scale plants<br />

of SA OEMs or to create independent<br />

industries?<br />

In Kenya at the moment there is no passenger car<br />

manufacturing other than what we have started.<br />

There is some truck manufacturing but nothing<br />

else, so you have to start slowly. This entails starting<br />

with semi-knock-down assembly, then medium<br />

knock-down, and finally full-scale construction. It<br />

is dependent on the annual volume you produce.<br />

Indonesia and other countries in the world have<br />

gone through this development phase. To build<br />

up a body shop with welding and all the logistics,<br />

you can only do that beyond production of 20 000<br />

or 30 000 cars per year.<br />

What is current Volkswagen operation in<br />

Kenya?<br />

We are planning on a thousand Polo vehicles per<br />

year for now, but at the moment it is a little slow<br />

because of the political aspects.<br />

Do you have something in Nigeria?<br />

In Nigeria we have had an operation since 2014; however,<br />

it was dormant until recently due to the oil and<br />

SOUTH AFRICAN BUSINESS <strong>2018</strong><br />

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