☛ Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily
21 March 2013 | Adam Leach
Almost half of all the minibus taxis bought in South Africa in the past year have been manufactured or assembled domestically, according to the South Africa Government.
By 2015, the government aims to have two-thirds of the taxis purchased in the country assembled within the local supply chain. In an update on what progress has been made so far, it revealed it has gone from almost none, to nearly half.
In October 2011, government, industry and labour associations agreed a procurement accord that committed to working together to increase localisation.
“We have made significant progress in localising the manufacturing and assembling of minibus taxis in South Africa. Some 12 months ago, none of the taxis on our roads were assembled in South Africa. Today, about 50 per cent of all taxis that are purchased, are made or assembled here,” said Ebrahim Patel, economic development minister of South Africa.
The minister explained that the progress had been supported by the private sector with Toyota expanding one of its factories and Beijing Automotive Works opening a new facility. The two companies have so far led to the creation of an extra 220 jobs through taxi assembly.