Young entrepreneurs and local suppliers could gain new opportunities as Chery International establishes its first vehicle assembly operation in South Africa.
Deputy President Paul Mashatile has called on the vehicle manufacturer to prioritise South African suppliers and youth-owned businesses as it develops its manufacturing operations in Rosslyn, Tshwane.
Speaking at the Chery International Factory Acquisition Celebration, Mashatile described the investment as a vote of confidence in South Africa’s economy and manufacturing sector.
The investment is expected to create jobs, strengthen local supply chains and support the country’s drive towards inclusive industrialisation.
“With the understanding that a strong automotive sector depends on a strong supplier base, Government calls upon Chery to work hand in hand with us in identifying and promoting local suppliers, especially those led by our youth,” Mashatile said.
“For it is in the strength of our supply chains that the resilience of our industry is secured, and it is in the creativity of our young entrepreneurs that the future of our economy is written.”
The Deputy President said opportunities should extend beyond direct employment at the factory and include participation throughout the automotive value chain.
Youth-owned businesses could potentially participate in logistics, vehicle components, services and technology, while local suppliers could benefit from capacity building, mentorship and access to new markets.
“Together as partners, we must ensure that local suppliers receive capacity building, mentorship, and market access,” Mashatile said.
“In doing so, we will create a value chain that is inclusive, competitive, and sustainable.”
The Rosslyn investment follows government engagement with Chery during a working visit to China in November 2023, where South Africa was promoted as an investment destination and automotive manufacturing hub.
Mashatile said the factory acquisition demonstrates continued international confidence in the country despite uncertainty in the global economy.
“It is a vote of confidence in our people, our institutions, our infrastructure, our long-term future. It reinforces South Africa’s role as the automotive gateway to Africa,” he said.
South Africa’s automotive industry is one of the country’s most important manufacturing sectors, supporting employment, exports, industrial development and technical skills.
The Deputy President also welcomed Chery’s focus on new energy vehicles, arguing that South Africa needs to respond to the global transition towards cleaner vehicle technologies to protect its competitiveness and export markets.
“We must also bear in mind that the global automotive industry is shifting rapidly towards new energy vehicles. We stand to lose important export markets by 2035 if there isn’t a transition in South Africa,” Mashatile said.
The factory’s potential impact could extend into communities surrounding Rosslyn, including Mabopane, Soshanguve, Ga-Rankuwa and Hammanskraal.
Mashatile said industrial investment must translate into opportunities for people living close to major manufacturing hubs.
“This factory is therefore a beacon of hope, skills and future opportunities for the youth of Mabopane, Soshanguve, Ga-Rankuwa and Hammanskraal,” he said.
Skills development will also be important to ensuring young South Africans can participate in a changing automotive industry.
Mashatile called for greater investment in apprenticeships, technical education and advanced manufacturing skills to prepare young people for opportunities created by new technology and changing production methods.
The challenge will be ensuring that the benefits of the investment extend through the economy, from employment on the assembly line to contracts for local suppliers, opportunities for small businesses and skills development for young people.
Mashatile said government would continue working to attract international investment while strengthening South Africa’s domestic manufacturing capabilities.
“South Africa is open for investment, ready for innovation, and committed to building an economy that offers opportunities for all,” he said.
“Together, we can shape a future defined by growth, industrial excellence, and shared prosperity.”
