MAYOR CALLS FOR STRONGER SUPPORT FOR AUTOMOTIVE MSMES
Published: September 22, 2026<< BACK TO NEWS
Nelson Mandela Bay
Municipality Executive Mayor, Councillor Babalwa Lobishe, has called on the
Department of Small Business Development to strengthen collaboration with the
Municipalities to create a conducive environment for automotive manufacturing
SMMEs to grow and be at the centre of the automotive value chain.
The Executive Mayor was
speaking at the Automotive Sector Business Breakfast hosted by the Minister of
Small Business Development, Stella Ndabeni, on Tuesday, 22 September 2026, at
the Boardwalk Convention Centre.
The business breakfast was
hosted by the Ministry for automotive industry SMMEs to introduce what the
Department calls the "One National Plan for the MSME Ecosystem”.
The Department of Small
Business Development has created the "One National Plan for the MSME Ecosystem”
to unite government policies, funding and support programmes for small
businesses across South Africa.
The plan seeks to better
coordinate national, provincial and local government, private companies and
finance groups, while eliminating red tape and making it easier for MSMEs to
access funding and skills opportunities.
The focus areas for this
plan include high-growth sectors such as manufacturing, agriculture, tourism
and logistics, which have the potential to create jobs and provide a much
bigger space for entrepreneur beneficiation.
The Executive Mayor
commended the Department for the One National Plan initiative, saying it places
previously disadvantaged role players at the centre.
"As the leading automotive
hub in the country, Nelson Mandela Bay is perfectly placed to be the pilot for
the aggressive implementation of this plan, as the establishment and support of
the automotive MSME foundation has been laid through the support of our
Economic Development, Tourism and Agriculture Directorate. We have already
invested R17 million over three years to support the sector,” said Executive
Mayor Lobishe.
She said through this plan,
government must address key challenges such as increasing competition from
cheaper products from other countries, local production costs and the global
shift towards electric vehicles.
"At our level as the local
government, we are already looking at the policy matters that will support
interventions and plans to protect this important industry. Working in
coordination within the District Development Model, a lot of work is before
us,” said Executive Mayor Lobishe.
Small Business Development
Minister, Stella Ndabeni, said the One National Plan cannot be designed in the
head office.
She said it is critical for
the Department to consult and canvas the plan with the industry, as it is at
the centre of its success.
"We are here to realise
meaningful economic transformation. We aim at doubling the beneficiation of
MSMEs. Our purpose is to ask how the transformation benefits MSMEs and what
support must be provided by both government and the well-established businesses
within the sector. This is one of the industries that is part of the South
African story, more especially Nelson Mandela Bay,” said Minister Ndabeni.
"From 2024, we have seen a
decline in the industry. This then calls for us to see this as a challenge and
answer the questions before us. As we implement our interventions, we need to
remember that the 60 percent localisation is still a target, as we are
currently at 30 percent. Localisation must be a practical MSME agenda,” said
Minister Ndabeni.
She said the sector
continues to respond to the daily lives of people, while also representing some
of the biggest contributors to employment.
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