Standard Bank headline sponsor of Naamsa’s first South African Auto Week

Reimagining the future, together

This first-of-its-kind event will be hosted at the Kyalami International Conference Centre from 25-28 October 2022 – and is themed ‘Reimagining the future, together’.

Esteemed participants include world-renowned industry giants as well as vehicle original equipment manufacturers (OEMs), vehicle component producers and suppliers, regulators and policymakers, international investors, pan-African auto leaders and dignitaries, including South Africa’s Minister of Transport, Mr Fikile Mbalula and the President of South Africa, Mr Cyril Ramaphosa.

Over the three-day hybrid and virtual conference, local and international speakers and panelists will share insights on transitioning the African auto industry to new energy vehicles by investing in smarter technologies, infrastructure, and people. Standard Bank will be represented at one of the conference’s panel discussions by Cyril Zhungu – the Head of Standard Bank Automotive Retail Finance.

The time to build a future-ready auto industry is now

The South African automotive industry is regaining its footing following the pandemic while also recovering from supply disruptions to become future-ready to maintain global competitiveness.

According to Naamsa, the South African automotive industry rebounded well from 2021, achieving growth in new vehicles by 13,4% on a year-on year basis as at the end of the 3rd Quarter of 2022. Over the same period, exports also recovered to reach 230 610 units, an improvement of 14,4% respectively.

Since most vehicles produced in South Africa are exported to various overseas countries including the United Kingdom and Europe, the country is anticipating plans from the local manufacturing industry to diversify its vehicle production model in order to continue capitilising on future export opportunities. There is no doubt that most of these markets are shifting from the exclusive use of internal combustion engines (ICEs) to alternative energy mobility models.

It is noted, however, that the local manufacturing industry has not only been resilient to disruption but agile and responsive to the changing landscape in both local and export markets over the years, including strategic capital investments to stay abreast of changing technology and demand trends to remain competitive.

This background provides confidence that the local manufacturing industry is capable of shifting to a future-ready automotive world given a requisite supporting policy framework.

Enabling the transformation of Africa’s auto industry

“We are very excited to be participating in the inaugural 2022 South African Auto Week as one of the main sponsors of this event. It’s critical to bring all stakeholders together and gain fresh insights from local and international experts in order to move forward meaningfully. At Standard Bank, we are no strangers to re-imagining the future. We have been on our own transformation journey in our quest to become a future-ready business,” says Cyril Zhungu, Head of Automotive Retail Finance at Standard Bank South Africa.

“The automotive industry drives our economy, both literally and figuratively, thus it being the backbone of industrialisation in South Africa and the African continent alike, with the broader automotive sector in South Africa alone employing an estimated 500 000 people. Standard Bank’s banking and financial solutions capabilities span across the entire automotive ecosystem - from manufacturing, distribution, imports and exports, to business fleet solutions, commercial and consumer vehicle finance. As the largest bank in Africa by assets, we acknowledge our expected role as a major enabler in the transformation of Africa’s automotive industry and driving its growth,” Zhungu adds.

Energy security concerns

With energy insecurity pervasive across the continent and power supply currently top of mind in South Africa, it is noted that this is a significant driver of the automotive industry and thus has a direct impact on the future sustainability of automotive industry, its stakeholders as well as the economy.

“Part of the global evolution in mobility is being driven by the imperative to migrate from traditional fossil fuels to alternative energy options including hybrid and electric power . While such transformation presents both opportunities and challenges alike, the African continent stakeholders need to plan for energy security requirements that support such transformation of the automotive manufacturing to align to changing market trends – be it a revolution or gradual evolution.