In the midst of the scepticism surrounding the term, the automotive industry has forged ahead in openly embracing radical economic transformation.
The industry is a leader in South Africa, both in terms of job creation and its impact on other industries.
The move is thus significant — particularly in light of the recent furore surrounding General Motors' decision to pull its investments from the country.
The motor industry accounts for 7.4% of GDP and 33% of South African manufacturing output — and as much as 60% of all production in Africa.
The automotive industry exports vehicles and components worth R171-billion to 154 countries.
These figures show the magnitude of operations of the motor industry in South Africa and how vital this industry is within the radical economic transformation framework.
The motor industry, under the banner of the National Association of Automobile Manufacturers of South Africa, has pledged its commitment to ensuring the continued growth of the industry and to identifying key imperatives that will allow it to remain a significant part of the South African economy.
Representing the industry, the CEOs from BMW South Africa, Nissan South Africa and Toyota South Africa outlined this first-of-its-kind initiative, embracing this transformation and future-growth agenda.
Despite many businesses becoming uncomfortable at the mention of the term "radical economic transformation", we remain committed to ensuring that we as the ANC explain the term and that people come to terms with it.
The focus remains growth — inclusive growth within the framework of radical economic transformation, heeding the call for visible participation of black entrepreneurs and black industrialists in the sector.Perhaps the most ground-breaking aspect of this initiative is the establishment of the Original Equipment Manufacturing Transformation Fund.
The fund will equip the industry to address three major areas, namely job creation, local supply chain and transformation.
The fund will seek to provide financial and management support to enable companies to become suppliers.
The other approach will be to develop black dealer ownership by providing financial support as well as business acumen to ensure sustainability within the industry...