The Eastern Cape government has announced a R150 million investment aimed at strengthening small automotive businesses in township and rural communities.
The initiative is being led by the Automotive Industry Development Centre Eastern Cape (AIDC-EC) in partnership with the Department of Economic Development, Environmental Affairs and Tourism, Eastern Cape Development Corporation, and the Chris Hani District Municipality.
It forms part of the province’s Automotive Aftermarket Support Programme, which has now moved into its implementation phase.
The programme was officially launched in Manzana village in eNgcobo, where selected small businesses began receiving workshop tools, machinery, and equipment to improve the quality of their services and strengthen their competitiveness in the automotive sector.
The Eastern Cape Economic Development underlined the importance of the automotive industry to the province’s economy.
Speaking at the launch event in Manzana, Eastern Cape MEC for Economic Development, Nonkqubela Pieters, highlighted the strategic importance of the automotive sector in the province. She noted that alongside agriculture, the sector plays a critical role in driving economic growth and job creation.
“Our regional economy is driven by the automotive sector, with agriculture as its vital partner. These industries are the backbone of the Eastern Cape,” she said.
Supporting sustainable small auto businesses
Beyond equipment support, the programme also focuses on building sustainable and compliant businesses. Participating SMEs will receive training to meet key industry standards, including occupational health, safety requirements and insurance compliance. This is expected to help informal mechanics transition into formal, recognised enterprises.
According to AIDC-EC, 19 businesses in the Chris Hani District have already been identified as beneficiaries in the first phase of the rollout.
Khaya Njingolo, executive manager of the Aftermarket Support Programme at AIDC-EC, highlighted the need to recognise township-based mechanics as entrepreneurs contributing to the local economy.
“People who are fixing cars are in business as well,” he said, adding that structured support and regulation are critical to strengthening and formalising the sector.
In addition to tools and training, the R150 million investment will also support infrastructure development. This includes roads and water systems, which are essential for enabling small businesses to operate efficiently.
The initiative is expanding access to resources and opportunities in rural and township areas. The Eastern Cape government aims to broaden participation in the automotive industry while driving inclusive economic growth across the province.
