According to David Powells, the President of the National Association of Automobile Manufacturers of South Africa (Naamsa), the country’s motor manufacturing industry will be gone by 2016 unless it becomes more competitive. All the more reason for the South African Reserve Bank to start managing the exchange rate of the rand more actively… at R7.35 per dollar, our manufacturers simply can’t compete globally. Car exports are down 35% yoy, and component exports 40%. Unless the rand moves to a more realistic level – say, about R8.50/$ – those export industries won’t recover.
Car industry could be gone in 7 years