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The Township Automotive Sector: South Africa’s most ignored supply chain opportunity
Posted by Admin (JS) 
on
16 July 2025, 18:05
SAST
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In every South African township, the roar of an engine being tuned or the clang of a spanner hitting concrete is a familiar sound. Thousands of skilled mechanics, spray painters, auto electricians and rebuilders operate in these communities, yet they remain disconnected from the formal automotive sector.
This isn’t an issue of skills; it’s an issue of systems. These businesses often work without compliant premises, structured financing, parts supply agreements or inclusion in OEM-aligned value chains. Many ESD strategies from automotive multinationals still focus on elite SMMEs located in industrial zones, bypassing the very entrepreneurs who serve the bulk of the country’s vehicles.
The irony? Township-based workshops are closer to customers, have lower operating costs, and have already proven resilience without support. Imagine what’s possible with the right backing.
This is a call to action: if your organisation is serious about inclusive localisation, ESG credibility and true transformation, it’s time to stop ticking boxes.
The automotive sector, from OEMs to component suppliers, must confront the uncomfortable truth: localisation goals and ESD spend are circling the same SMMEs while real grassroots enterprise remains sidelined.
Imagine if just 5% of auto repair and maintenance budgets were redirected into formalising and integrating township auto workshops. That’s not only transformation. It’s economic velocity!
You want real ESG impact? The township needs access, investment, and partnerships that deliver lasting value, to both business and community.
At KasiKonnect, we design and implement supplier development programmes rooted in infrastructure readiness, supplier aggregation, digital enablement, and measurable outcomes.
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