South Africa wants to become a major supplier of components for Nigeria’s burgeoning automotive industry as more vehicle companies consider assembling cars in the continent’s largest economy.
South Africa has been giving Nigeria technical advice on its own policies to support the manufacturing of cars, Minister of Trade and Industry Rob Davies said in an interview Thursday in Johannesburg with Bloomberg TV Africa’s Eleni Giokos that will be broadcast on March 28.
“We’re also interested in positioning South Africa as the supplier of the components that would go into the kits that Nigeria is looking to assemble,” he said.
The countries have so far not concluded any agreement over the supply of components, Davies said. “We need to pick up the pace of this after the Nigerian elections,” he said.
Carmakers including Tata Motors and Toyota are in talks with the Nigerian government on setting up operations after Nissan last year started assembling vehicles in the country. South Africa, where manufacturers such as General Motors and Bayerische Motoren Werke AG own plants, assembled 566 000 cars in 2014, according to the National Association of Automobile Manufacturers.
Nigeria is holding presidential and legislative elections on March 28.
©2015 Bloomberg News