Old Mutual and naamsa team up to fast-track transformation in the automotive industry

The Automotive Business Council has partnered with another South African blue-chip company, Old Mutual to host the second instalment of its four-part series of Thought Leadership Roundtable discussions that focusses on the industry’s four key strategic areas for the 2023 calendar year. For this session, the discussions will move to the all-important issue of Transformation Beyond Compliance and how all key stakeholders can be Drivers of Change in driving the transformation topic which has become a license to trade for the automotive industry in South Africa. The Thought Leadership Roundtable discussion will be held at the Melrose Arch in Johannesburg on Monday, June 26, 2023.

The overarching theme of this collaborative initiative is driving sectoral transformation with the aim to bring together key stakeholders to discuss and explore the crucial aspects of economic inclusion and equity within the automotive sector in South Africa. This event will serve as a platform to foster dialogue, share insights, and identify strategies to drive positive change in the industry.

Their shared commitment to social and economic transformation, financial inclusion, and the growth of the Small Medium Enterprise (SME) sector led to this mutually beneficial and potentially impactful joint initiative.

The event promises to see business leaders drive meaningful and honest conversations about the state of the industry transformation, unearth stumbling blocks to industry growth, share diverse perspectives with other ancillary industry leaders, establish new relationships and take on new opportunities and approach to grow market reach.

Nobesuthu Ndlovu, the Director of SME at Old Mutual, says, “One of the key enablers of localisation and promoting black manufacturers in the automotive industry is access to finance. As part of collaborative initiatives, large businesses play a critical role in enabling access to finance, including financial education.”

Localisation ensures that manufacturing processes, supply chains, and value-added activities are rooted within the local economy, contributing to job creation, skills development, and overall economic growth. Promoting black manufacturers specifically fosters economic empowerment and enhances diversity within the industry.

“Our mandate is aligned to the Sustainable Development Goals (SDGs) and seeks to reduce inequality, poverty and unemployment through providing funding and business support to SMMEs. Ultimately this will contribute to the provision of decent work and economic growth.”

Unlocking the future through collaboration

The first of the three roundtable discussions will look to the future and delve into the actions required to continue to succeed in a highly challenging, rapidly evolving world.

The auto industry’s strategic need to upskill and reskill its workforce is an urgent issue in the wake of the enormous advances being made in emerging technologies such as Artificial Intelligence (AI), automation and digitisation. Delegates will explore these emerging trends and other advancements shaping the automotive industry.

Tshetlhe Litheko, Executive Transformation Executive at naamsa says, “We will explore strategies and initiatives needed to upskill and reskill the workforce. This may include the establishment of training programmes, partnerships with educational institutions, apprenticeship schemes, and continuous learning opportunities.”

The Old Mutual Foundation, which has made education one of its key focus areas, aims to address the skills shortage by playing a critical role in revolutionising the way high school learners are taught the STEM skills (Science, Technology, Engineering and Mathematics).

“As a pioneer of collaborative Corporate Social Responsibility (CSR) programmes, Old Mutual has committed to bring all relevant stakeholders together, to influence and catalyse systemic change,” says Khotso Tsotsotso, Acting Head of the Old Mutual Foundation. "To equip industries like the auto industry for the changing demands of the future, South Africa needs to produce innovative, creative engineers and brilliant scientists.”

Tsotsotso will also speak about the importance of grassroots funding and public private partnerships.

A gateway to prosperity

The second roundtable discussion on the programme will focus on the value of financial inclusion and financial education, particularly for individuals in the auto industry who were previously marginalised, neglected or rejected by the system, and are today struggling with debt, transport and other challenges.

The conversations will focus on challenges faced by the poor in accessing mobility and transportation services. This may include limited public transportation options, inadequate infrastructure in under-served areas, and the high cost of owning and maintaining vehicles.

The CEO of TransUnion Africa, Lee Naik, who is scheduled to provide insights in the session, says, “We want to showcase programmes that have provided accessible financing options, community-driven transportation services, and innovative partnerships between public and private sectors.”

“It is important to understand the challenges faced by South Africans in accessing mobility and transportation services.”

“Let us dig deeper into financial inclusiveness, innovative financing models such as the two-pot retirement savings annuities system, and the significance of public-private partnerships to create viable solutions.”

Empowerment beyond compliance

The conference’s third major discussion will explore strategies to support and integrate the growth and empowerment of black manufacturers, industrialists and SMEs who are part of the auto industry’s broad supply chain and allied community.

The panel aims to brainstorm ways large business can enable access to financing and provide small businesses with the support they need to compete and succeed.

To address the needs of SMEs, Old Mutual launched a new business unit, Old Mutual SME, that will focus on companies that generate annual revenues of between R1m and R100m with fewer than 250 employees. Old Mutual SME director Nobesuthu Ndlovu says the new offering has been designed as a one-stop-shop for qualifying owners who want to take their business to the next level.

Business owners now have access to fast, easier funding opportunities, including supply chain finance. Gaining access to different markets and saving time on administrative processes are additional benefits.

According to Ndlovu, who understands the challenges and opportunities facing SMEs first-hand, the newly established business unit also seeks to strengthen the company's promise of being SA entrepreneurs’ most trusted partner in uncertain times.

“Supporting a thriving SME sector is aligned to Old Mutual’s overarching business strategy of sustaining and growing SA’s prosperity,” she says.