Ministers Rob Davies and Ebrahim Patel,

Chairman of Toyota- Dr Johan Van Zyl,

President and CEO of Toyota South Africa Motors- Mr Andrew Kirby,

Toyota South Africa and Japan Motors Leadership,

Former Ambassador to Japan, Dr Ben Ngubane,

Ladies and gentlemen,

Good day to you all.

I am honoured to be present here today at the official launch of the new Hilux and Fortuner Toyota models.

This is a very positive event for our country, as it demonstrates confidence in the economy during a difficult period.

We are still experiencing the effects of the global economic crisis that befell us in 2008. The crisis resulted in a global slump in demand and lower production volumes, which was so severe that it threatened the existence of some of the major international automotive producers.

In this regard, I wish to congratulate and thank Toyota for its decision to continue   investing in local production of vehicles.

I am pleased to hear that this investment in the production of the new Hilux and Fortuner supports more than 4 000, jobs whilst total employment in the plant exceeds 8 000 jobs.

This is a significant contribution towards dealing with the serious challenge of unemployment in our country.

We welcome the investment of about R6.1 billion made in the past few years which has resulted in the launch today of the Toyota Hilux and Fortuner production lines.

This investment clearly demonstrates the confidence that global automotive producers continue to have in South Africa as an investment destination and the supportive policy environment which we offer. 

Government has taken a conscious decision to support the country’s automotive sector as it is very important for the country and for the economy.

The support provided by Government through the Department of Trade and Industry has attracted investments of over R25 billion in the automotive industry in the past five years.

We continue to support the auto sector because the results are visible. The South African motor industry has been one of the key successes of government’s economic policies.

Since 1995, exports have more than doubled, rising from just over two hundred and forty thousand units to six hundred and fifteen thousand vehicles in 2015.

Given the current global economic slowdown, we decided to launch the Nine Point Plan to reignite growth, which was announced in the 2015 State of the Nation Address.

One of the pillars of this plan is a higher-impact Industrial Policy Action Plan. The eighth phase of IPAP was launched by Minister Rob Davies earlier this month with a focus towards increasing manufacturing, employment creation and export-intensity.

Work towards the development of a new Automotive Plan to cover the period 2020 to 2035 has also commenced with a target completion date of March 2017.

We thus see a brighter future for our automotive industry in our country, and look forward to growth and continued success for this sector.

We support the automotive sector also because it is part of the important efforts of growing our manufacturing sector.

Manufacturing is far more important than the 15% it contributes to the economy. It forms the basis of a modern economy.

Ladies and gentlemen,

It is important for the automotive sector to be part of economic transformation efforts. I know that Toyota is very much aware of this imperative.

The current situation where Black participation in the automotive value chain is mainly at being employees rather than in business ownership and control can, and should, drastically improve.

Thus, the next phase of government policy will aim to integrate local companies, especially small black-owned companies, into the supply chain.

Toyota South Africa is a leading supporter of local suppliers and we commend you for this role.

Ladies and gentlemen,

Let me reiterate that South Africa is open for business.

We are very pleased that Toyota remains committed to investing and doing business in South Africa.

We are confident that the partnership South Africa has with Japan and her companies such as Toyota will continue to grow for the benefit of all our people and our economic development.

We say this with confidence given the new spirit of collaboration that exists between government, business and labour in our country.

We are working together to remove obstacles to investment and to unlock economic growth.

This has never happened before on this scale. Labour has joined the efforts of working together for the common good of our country.

South Africa is therefore in a good space right now. We all agree that we want to see growth and jobs and that we shall work together towards that destination.

We look forward to continued cooperation with you, as we work towards a better life for all.

I thank you.