Deputy President Paul Mashatile: Chery International Factory Acquisition Celebration

Programme Director, Ms Joanne Joseph;
Premier of Gauteng, Mr Panyaza Lesufi Premierand the Executive Mayor City of Tshwane, Cllr Nasiphi Moya;
Chairman of the Chery Holding Group, Mr Yin Tongyue;
President of Chery International, Mr Charlie Zhang;
Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to the Republic of South Africa, H.E. Ambassador Wu Peng;
Industry Leaders and Business Partners;
Government Leadership, Organised Labour, and Members of the Diplomatic Corps;
Members of the Media;

Ladies and Gentlemen;

Good Afternoon, Dumelang!
For me, Rosslyn and the automotive sector carry a personal affinity that goes back many years, including the period when I served in the leadership of Gauteng.

It was during that time that we came to appreciate, in very practical terms, that the future of this industrial precinct is inseparable from the livelihoods of workers, the confidence of investors and the aspirations of surrounding communities.

When concerns arose about the possible exit of BMW from Rosslyn, we intervened because we understood that losing such a strategic anchor would have weakened not only Gauteng’s industrial base but also South Africa’s standing as a serious automotive manufacturing destination.

That experience remains a reminder that government must be close to industry, close to workers and close to communities when the future of production and jobs is at stake.

I also wish to appreciate the leadership of the Gauteng Provincial Government, the City of Tshwane and the Department of Trade, Industry and Competition for their continued investment in the expansion of the Tshwane Automotive Special Economic Zone, right at the doorstep of Mamelodi township.

This matters profoundly because industrialisation must not happen far away from the people it is meant to uplift. By locating new factories, supplier opportunities, training platforms and enterprise support so close to Mamelodi, Nellmapius, Eersterust and surrounding communities, we are making a clear statement that township residents must be direct participants in the economy of the future.

This is how we turn industrial policy into household income, how we convert investment into skills, and how we ensure that young people from our townships can see opportunity not as a distant promise, but as something being built within reach of their homes.

This afternoon we gather to celebrate a new chapter for Chery and another milestone in the journey of South Africa’s industrial and economic development.

I express appreciation to the Department of Trade and Industry for expediting the facilitation of this process, which has reached fruition less than three years after our November 2023 Working Visit to China.

To provide context, during that visit, we engaged with the leadership of Chery International, focusing on promoting South Africa as a prime investment hub and enhancing local automotive manufacturing and supply chains.

This moment stands as a living testament to the confidence in our nation’s future, reinforcing the optimism that drives our developmental path. It is a testament to South Africa’s participation in and shaping of global industrialisation with resilience, vision and shared purpose.

The automotive industry in our country has been constantly evolving from the establishment of assembly plants in the middle of the last century, through the Motor Industry Development Programme of 1995 and the Automotive Production and Development Programme, which positioned our country as a hub for the continent.

Since then, the relevance of this sector has notdissipated with time but continues to shape our present and future.

The sector has consistently contributed to national growth, accounting for a significant share of GDP, driving exports across Africa and beyond, and anchoring our balance of trade.

It is a sector that creates employment for hundreds of thousands, directly and indirectly, while nurturing skills development, creating jobs and building technical expertise that empowersour youth and artisans.

Consequently, each investment, each new plant, and each innovation strengthen the foundation of industrial growth, ensuring that South Africa remains a competitive hub for automotive excellence.

It has become evident that South Africa’s automotive sector is undergoing a noticeable shift in its trade and market structure.

Import penetration has increased; Chinese brands have expanded rapidly in recent years, increasing their share of the domestic market.

Today, as Chery joins this proud lineage by establishing its first vehicle assembly plant in South Africa, we recognise that this milestone is not only about vehicles on our roads but about livelihoods, knowledge, and renewal that fuel our nation’s developmental journey.

This journey is especially remarkable given global uncertainty, supply chain disruptions, and rising competition. Yet this sector continues to actively support transformation.

Transformation with a purpose.

Transformation with results.

Through the Automotive Industry Transformation Fund (AITF) real progress is being made to develop a more inclusive and competitive sector. AITF empowers Black-owned businesses, strengthens local supply chains and furthers sustainable industrialisation.

Since its launch in 2021, the AITF has provided support to more than 80 Black-owned businesses in the South African automotive value chain.
This is also another success story of the power of policy frameworks. 

Transformative industrial policy has led the way since the dawn of democracy. With a vision of increased value addition, we have pursued an industrial trajectory that places South Africa firmly within global value chains while strengthening our domestic base.

Through support programmes and theAutomotive Master Plan, we have strived to ensure that the sector is stronger, globally competitive, and transformed.

The Master Plan sets bold targets aimed at increasing domestic production to 1.4 million units, which is 1% of global output; boosting local content to 60%; doubling employment; transitioning to New Energy Vehicles by 2035; and bringing new companies into the value chain.

These are commitments to deeper valueaddition, broader participation, and greater resilience.

It is in this context that the acquisition of the Rosslyn factory by Chery International is a powerful signal to global investors that South Africa remains a trusted destination for industrial investment.

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.

Government values this investment, as it is anticipated to positively impact the lives of many ordinary people in the surrounding communities.

Ladies and Gentlemen,

Government welcomes Chery’s presence in Rosslyn precisely because it offers thepossibility for industrialisation to be rooted in local communities, for jobs to be created where they are most needed, and for young South Africans to see themselves not only as workers but as owners, innovators, and leaders in the automotive sector.

This factory is therefore a beacon of hope, skills and future opportunities for the youth of Mabopane, Soshanguve, Ga-Rankuwa and Hammanskraal!

I believe that this investment will also reinforce the social fabric through the co-operation of organised labour, local suppliers and township entrepreneurs in one value chain.

It is important to separate basic assembly from the more advanced localisation of components and supply chains. Assembly by itself may provide only shallow employment, but prospects are better with localisation because it creates significant job multipliers, broadens industrial ripple effects, and promotes skill development across generations.

Localisation enables township businesses to become engines of inclusive growth, and it ensures that innovation flows beyond the factory floor and into the broader economy.

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.

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.

Bringing township suppliers into the automotive value chain will not only strengthen Chery’s own operations but also brings transformation into the communities where opportunity is most needed.

Together as partners, we must ensure that local suppliers receive capacity building, mentorship, and market access. We should provide opportunities for youth-owned enterprises to participate in logistics, components, services, and technology.

In doing so, we will create a value chain that is inclusive, competitive, and sustainable.

Furthermore, local supplier development creates opportunities for entrepreneurs and strengthens resilience. Government encourages collaboration between Original Equipment Manufacturers (OEMs) and local suppliers to expand participation across the value chain.

We must also bear in mind that the global automotive industry is shifting rapidly towards new energy vehicles (NEVs). We stand to lose important export markets by 2035 if there isn’t a transition in South Africa. We appreciate that Chery is leading this charge in Africa with NEV options across its range.

South Africa is well positioned to serve the continent with vehicles through the African Continental Free Trade Area. South Africa will open this door by working with global manufacturers and establish itself as a premiere manufacturing hub for Africa.

Our Government remains committed to creating an enabling environment for investment. Shared success requires a shared commitment between Government, labour, communities and industry.

Ladies and Gentlemen,

The current state of South Africa's industrial landscape is marked by an increasing trend of foreign companies acquiring local industrial firms. 
While such acquisitions are beneficial as they bring in crucial capital and advanced technology, they also raise significant issues regarding de-industrialisation. The concerns are centred on the potential erosion of local ownership within the manufacturing sector and supply chains, posing challenges for maintaining a robust domestic industrial base.

South Africa is addressing the challenges of de-industrialisation through a state-led strategy that emphasises the need to balance foreign investment with robust domestic safeguards. This approach includes the enforcement of local procurement rules and competition laws to protect local supply chains. 

To facilitate this transition, the Government is focused on improving infrastructure in energy, rail, and ports, utilising trade measures such as tariffs. Additionally, we strongly encourage foreign-owned companies to source materials and utilise local factories instead of relying on imports while also providing funding and training to help local firms adopt new technologies.

Our people are absolutely the greatest asset. It is critical to invest in training, apprenticeships and technical education, thereby empowering young South Africans to recognise opportunities within advanced manufacturing and technology driven industries.
South Africa needs to be at the forefront of the technologies that will shape the future of mobility. 

Chery’s investment will pave the way for technology transfer, automation, digitalisation and advanced manufacturing systems.

These developments will beef up our industrial capacity and put South African engineers and technicians at the cutting edge of innovation.

The future of Rosslyn, and the greater promise of our country, rests heavily on the shoulders of our youth. Every skill they gain, every apprenticeship they take on and every innovation they master is a vital part of the infrastructure that will support the renewal of our country.

Today, we celebrate Chery’s confidence in South Africa and reaffirm our commitment to industrialisation, investment attraction, and economic growth.

As I mentioned when I met with Chery Automobile's leadership in China a week ago as part of my working visit to enhance bilateral trade and industrial investment, South Africa is open for investment, ready for innovation, and committed to building an economy that offers opportunities for all.

Together, we can shape a future defined by growth, industrial excellence, and shared prosperity.

Ladies and gentlemen, if you forget everything else said today, remember this: the Chery Rosslyn Plant must not only be about the vehicles that roll off its production line but also about the lives it touches and transforms in the communities nearby and South Africa as a whole.

Let me conclude by wishing you a more prosperous future with prospects of future expansion to other parts of the country.

I Thank You, Inkomu.

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