The South African government would not enforce a black economic empowerment (BEE) charter in the automotive industry, allowing it to commit to its own initiatives, Mandisi Mpahlwa, the trade and industry minister, said on Tuesday.
”In view of the fact that vehicle assembly and component manufacturing are generally the functions of multinationals and global competitors, … [The] government regards it as more advantageous to allow multinationals in certain parts of the industry to commit to their own BEE initiatives…” he said at the opening of the Auto Africa 2004 at Nasrec, Johannesburg.
The minister said although government would prefer BEE equity participation, it was ”open to negotiation” with global companies.
”Stakeholders in the automotive industry indicated that they intend to be transparent in this regard and I look forward to receive information on accelerated progress in the near future, in line with your commitments made in the Motor Industry Development Council.”
South Africa’s automotive industry was ranked 20th in the world last year and was the leading industry in the manufacturing sector in the country. South Africa is responsible for 84% of Africa’s vehicle output. – Sapa