Toyota-Ogihara JV Sets Up Auto Parts Plant in South Africa
On 22 August 2023, Japanese Toyota and Thai Ogihara officially inaugurated its new manufacturing plant for auto parts in Durban, South Africa. The Plant necessitated and FDI of USD 61 million. French CFAO Motors is also a partner in the venture.
The Plant is located in the Special Economic Zone (#SEZ), dubbed the Dube TradePort, which is situated in the surroundings of the seaport of Durban. The factory will occupy an area of 32,000 square meters and will produce steel components that go into the fabrication of car bodies.
“This ZAR 1.2 billion investment represents more than just economic opportunity; it underscores our commitment to sustainable growth, structural reforms, and a brighter future for South Africa.”
South African Minister for the Department of Trade, Industry and Competition Mpho Tau
According to the Automotive Business Council of South Africa, the auto industry contributes 5.3% to the GDP of South Africa. Earnings from export of vehicles increased from ZAR 227.3 billion in 2022 to ZAR 270.8 billion in 2023, representing a 19.1% growth year-on-year.
The investment is in line of the policy of the South African government to promote #industrializaton via more Local Value Addition (#LVA) and the expansion of the automaking ecosystem. South Africa ambitions to retain the leadership in the auto industry in Africa with the production of vehicle ramping up to 1.4 million units by 2035.
