New Auto Hub a boost for SMMEs on West Rand

The aim of the project, which was the fruit of a partnership between the Automotive Industry Developments Centre (AIDC), Mogale City Local Municipality MCLM), the Gauteng Provincial Government and the City of Reggio Emilia in Italy, was to address barriers to entry into the automotive aftermarket sector for SMMEs.

Mogale City Executive Mayor Councillor Tyrone Gray, together with a high-profile delegation from Italy, MEC of Economic Development Tasneem Motara and the AIDC were present at the unveiling.

Gray and the Mayor of Reggio Emilia City in Italy, Luca Vecchi, as well as the MEC, handed over the state-of-the-art body repair hub to the local community.

The objectives of the hub are to create sustainable township entrepreneurs in the automotive sector, to train and upskill automotive entrepreneurs/artisans, to create jobs for the local community, to renew and redevelop the Chamdor Training Centre/Industrial site, and to contribute to local economic development in the MCLM.

The services that are available at the Hub thus far are tyre services, spray painting, motor mechanics, auto electrical, upholstery, a locksmith, glass works and a battery centre. The small, medium, and micro companies utilising the hub, will work in partnership with Italian companies such as Corghi, Flexbimec, Airtec and Elettrouno. The companies will be offering capacity building and technical assistance.

Gray said in his opening address: “We are proud to be part of a strategic partnership that seeks to uplift and support the disadvantaged community of Kagiso. This partnership will also unlock business opportunities for young and unskilled people of the area. We are looking forward to seeing many such projects coming to Mogale City, as we are the economic hub of the West Rand.”

Addressing the challenges faced by the SMMEs, Motara said her department is mindful that SMMEs in the country experience the highest rate of business failure. “Hence as GED working together with our local and international partners, we endeavour to support sufficiently and develop Chamdor industrial site and its SMME ecosystem. We will do so by ensuring that these small and medium enterprises survive this start-up period to eventually become independent and productive enterprises,” says the MEC.

In its statement, AIDC said the centre will afford an opportunity for SMMEs, who are often left behind owing to a lack of infrastructure tools and conducive workspaces to conduct their business.

“This centre is also envisaged to stimulate township economy through a value chain of sourcing materials and parts needed to repair the vehicles, so it will leverage various industry partners such as suppliers, Non-Profit Organisations and Government partners to support local township entrepreneurs’ growth,” read the statement.