Document: South Africa: Automotive Cluster (Macroeconomics of Competitiveness)


South Africa is one of the most advanced countries in Africa, with a strong mining cluster and a significant domestic market. In manufacturing, the automotive cluster is the most important and successful, with firms operating along all levels of the value chain. Major

international automobile manufacturers are at the center of South Africa’s export oriented auto cluster, and their presence has spawned the creation of supporting suppliers. South Africa is an exporter of auto components, particularly catalytic converters and leather upholstery.

However, the auto cluster faces intense competition from a global industry whose center of gravity is increasingly shifting to emerging markets. Other emerging market auto clusters like those of Mexico and Thailand enjoy advantages of lower costs and greater proximity to major export markets. In order to compete, South Africa must address its competitive weaknesses.

As economic isolation and protection began to wind down after apartheid, the government helped the auto cluster adjust to international competition through the support of the Motor Industry Development Program (MIDP). South Africa is now at a crossroads as MIDP comes to an end. It still must address weaknesses in regards to labour market rigidity and unrest, lack of skilled technicians, low levels of R&D, and insufficient supplier depth.


South Africa: Automotive Cluster


Your rating: None
Average: 5 (5 votes)


Anna Lucía; Alfaro Gera Bizuneh; Ryan Moore; Shuhei Ueno; Ruddy Wang

Publication Year




Myriam Boyer's picture
Myriam Boyer replied on

THIS IS GENUINE. NO SCAM. Hi! My name is Myriam Boyer. I want to tell my testimony to the whole world how this great and powerful man called great baba helped me to bring back my partner. My man left me for another lady for five years. I almost gave up until my friend advised me and introduced me to this great man whom she met on the internet. I never believed at first but she encouraged me and i tried to believe and contacted him on his email. I told and explained everything to him and he assured me that he will help me and that i should not worry too much. I believed him and i did all that he asked me to do which i did and it work perfectly and my husband came back to me begging for forgiveness. I am so happy and excited now. I discovered that when my husband came back he even loved me more than the way he used to love me before he left me. great baba opened up his eyes to see how much i love him and how much love we ought to share together as one. This is not brain washing contact great baba now on his email: