The Automotive Industry Transformation Fund (AITF) has assumed the role of Executive Oversight Committee (EOC) Secretariat to track the implementation of the South African Automotive Masterplan (SAAM) 2035.

“The journey to achieving SAAM 2035 requires more than ambition – it demands strategic tools that drive industrialisation, localisation and growth,” says AITF CEO Jabulani Selumane.

“The AITF was never designed to be a silver bullet, but rather a powerful complementary force, working alongside the sector to achieve its objectives.”

The AITF’s new role will see the fund coordinate and deliver on SAAM’s key pillars, including localisation, regional integration, skills development, infrastructure, technology and market optimisation, by means of a dedicated SAAM delivery office.

A chief project officer is currently being recruited to manage this delivery office.

“This new mandate positions the AITF to help the sector pivot with purpose, sharpen its global competitiveness, and deliver against tangible, outcomes-based projects,” says Selumane.

Since its establishment in 2020 as a collective equity equivalent investment programme by South Africa’s seven vehicle assemblers – BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen – the AITF has evolved from a compliance focused initiative into “more of a catalyst for competitiveness”, he says.

Guided by its building, operating, orientating, solving and transforming (Boost) mandate, the fund has diversified its support instruments to meet the demands of a rapidly evolving operating environment, Selumane adds.

This includes managing the Automotive Production and Development Programme 2 Transformation Fund and the Automotive Supply Chain Competitiveness Initiative, both designed by industry to strengthen Tier 2 and Tier 3 component supplier participation and operational efficiency.

Since 2020, the AITF has invested more than R600-million, supporting more than 70 black-owned businesses, with over 30% of funding directed to women-owned enterprises.

Between 2025 and 2029, the fund aims to invest an additional R1-billion, empowering more than 90 black-owned enterprises, while strengthening Tier 2 and Tier 3 supplier participation.

Since its inception in 2020, the AITF has created and retained 2 719 jobs, says Selumane.

According to the AITF, the local parts content levels on vehicles assembled in South Africa remains steady at just under 40%.

It also notes that the contribution of black industrialists currently stands at 7% (measured by gross value addition), against the SAAM target of 25% by 2035.