Interventions to Skills Development in the Automotive Manufacturing Sector of South Africa

Competitiveness of the automotive industry is critical to South Africa's economic sustainability. Recent studies have shown that the automotive sector has consistently contributed over 7% to South Africa's annual gross domestic product (GDP) and as such, it is particularly imperative to support this sector, through growth-stimulating measures. Economic growth of any nation has long been attributed to the availability of resources, both tangible and intangible. Human capital is thus far the greatest intangible asset recorded in history and it is the key element upon which the success of all sectors is predicated. The availability of foreign direct investment (FDI) has largely been credited to the level of skilled and proficient human resources within an economy. This chapter highlights the strategic position of the South Africa automotive industry, by discussing various skills development interventions recorded within this sector from a domestic standpoint and from an international perspective. It comparatively analyses the approach applied locally with those implemented in other countries, through a historical review of skills development measures within the automotive manufacturing sector. The chapter identifies the major stakeholders, their roles and recognized contributions toward establishing a sustainable automotive sector. The skills development frameworks discussed in this chapter will serve as bases for informed decision to other industries interested in adapting and replicating some of the plausible actions applied in the automotive sector for their own growth.