PROJECT

Projects

Summary of Advisory Services Project Information

Project Number

606041

Primary Business Area

Other

Disclosure Date

Nov 17, 2022

Country

South Africa

Region

Africa

IFC Approval Date

Dec 13, 2021

Status

Active

Estimated Total Budget

$500,000.00
(Project budget includes all project-funded activities)

Last Updated Date

Nov 30, 2022

Project Estimated Start Date

Dec 31, 2021

Project Estimated End Date

Jun 29, 2023

Project Description

IFC's RSA Automotive Local Supplier Development Program supports the Government of South Africa's efforts to integrate local firms into the value chains for the automotive industry and thereby deepen the domestic manufacturing sector. The initiative, which engages both IFC's advisory and investment arms (over the long term) will support development by the National Association of Automotive Component Manufacturers (NAACAM) of an electronic "Linkages" platform that will match the competencies of local Tier 2 and 3 suppliers (skills, manufacturing capacity and BBBEE ratings) to the business needs, local component quality/quantity specifications and transformation profiles of OEMs and Tier 1 suppliers in order to optimize benefits under the South Africa Automotive Plan. The Program is intended to address profound challenges to the further growth of the industry posed by the relatively weak capacity of local suppliers. Development results expected from the advisory programs include increased FDI into South Africa, the creation of high-skilled jobs and the development of skills for South Africans especially those from disadvantaged demographies.

Development Results

E&S Risks / Impacts and Mitigation