MEDPOLICYGP SAnews.gov.za
Mashatile calls for local suppliers to benefit from Chery investment
Source: SAnews.gov.zaView Original Source
The Deputy President's call for Chery to prioritise local and youth-owned suppliers reflects a broader government strategy to leverage foreign direct investment for local industrialisation. This creates immediate opportunities for automotive suppliers, especially SMEs and youth-owned firms, while setting a precedent for future large-scale investments.
Suppliers in the automotive value chain must demonstrate local content, transformation, and youth inclusion to qualify for subcontracting opportunities with major OEMs like Chery. Non-compliance may exclude them from future tenders.
Government explicitly ties foreign investment approvals to local supplier development and youth empowerment in the automotive sector
This reinforces the dtic's local content policies (e.g., Automotive Production and Development Programme) and signals stricter enforcement of B-BBEE and localisation requirements across all major procurement projects, not just automotive.
Local suppliers, particularly youth-owned and township-based businesses, should prepare for RFQs from Chery and its Tier 1 suppliers. Focus areas: components, logistics, services, and technology. Government-backed capacity-building programs may follow.
Failure to meet local content or transformation criteria could disqualify suppliers from participating in Chery's supply chain or similar government-backed projects.
Excerpt reproduced for context. Tenders SA analysis is based on this public source. Read the full article at SAnews.gov.za.
Stay ahead of procurement changes