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Speaker 1: View with Clement Manya Tela seven O two. It's two

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Speaker 1: minutes before eleven Outlack. I want to bring in now

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Speaker 1: and Africa. Who's the CEO at the Automotive Industry Development Center.

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Speaker 1: They are one of the sponsors of the year's proudly

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Speaker 1: South African by Local Summit. Andya thank you for speaking

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Speaker 1: to us. Good morning, Thank you very much, Clement. Why

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Speaker 1: was it important for you guys to support an event

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Speaker 1: that focuses on localization and buying local They.

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Speaker 2: ADC is an entity of government that's responsible for developing

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Speaker 2: the automotive industry locally and our biggest mandate is to

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Speaker 2: grow localization in the automotive vailue chain. This includes vehicle

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Speaker 2: assembly in holding. For example, we've got three OEMs like

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Speaker 2: BMW Ford and now recently announced Cherry will be setting

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Speaker 2: up an assembly plant in Roslyn. And supplying to those

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Speaker 2: OEMs are components manufacturers, which we are part of developing.

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Speaker 1: Those for the whole province. Yeah, and of course South

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Speaker 1: Africa is you know, has a strong automotive manufacturing footprint,

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Speaker 1: but many components are still important. Where do you see

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Speaker 1: the biggest opportunities to deepen local manufacturing?

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Speaker 2: Yeah, A Clement. We we have a document called the

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Speaker 2: South Ako what If master Planet twenty thirty five. In

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Speaker 2: this master plan, we have a very ambitious target of

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Speaker 2: saying we want to have sixty percent localization by twenty

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Speaker 2: thirty five. Currently we're sitting at around that nine percent.

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Speaker 2: And the opportunity there is to deep in localization by

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Speaker 2: going into tier two tier three suppliers. And what that

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Speaker 2: means is that Tier one are the supplies that supply

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Speaker 2: directly onto the OEM and then these Tier two are

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Speaker 2: the ones that could produce the subcomponents that go into

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Speaker 2: the Tier one sub assembly and Tier three are the

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Speaker 2: raw material supply. So there's there's a very there's big

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Speaker 2: opportunity for example in mid marke beteficiation for example. You

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Speaker 2: know currently all this this steel, the automotive great steel

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Speaker 2: is important and this opportunity for us to actually localize

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Speaker 2: the manufacturing of steel because we do have i OH

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Speaker 2: which is Minetan in South Africa.

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Speaker 1: Well, what about the small and medium sized manufacturers you

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Speaker 1: want to enter the automotive supply chain. What role do

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Speaker 1: you organizations like I d C play in helping them?

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Speaker 2: So the ADC runs an intubation program at Ford, in

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Speaker 2: partnership with Ford and in partnership with the Tier one suppliers.

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Speaker 2: What we do is that we match the small SMEs

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Speaker 2: with a Tier one supplier. They do certain parts that

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Speaker 2: get outsourced to them to do and they produce severe

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Speaker 2: the components onto the production line. The automotive industry has

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Speaker 2: a very high barrier to entry. The quality standards, the

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Speaker 2: capital costs and the capacity are usually payers to entry

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Speaker 2: for SMEs. So through this intubation program and we've been

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Speaker 2: able to have success stories where we've had graduates out

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Speaker 2: of our intubation program that are currently supplying to the

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Speaker 2: likes of Ford, and and and and and BMW.

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Speaker 1: And so all right, Aela Africa, thank you so much

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Speaker 1: for speaking to us. Thank you. All right, it's a

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Speaker 1: minute after eleven o'clock. It's time for the news and

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Speaker 1: this