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Nedbank turbocharges the South African automotive sector

Nedbank turbocharges the South African automotive sector
20-10-22 / Sisanda Ndlovu

Nedbank turbocharges the South African automotive sector

Johannesburg - South African Auto Week 2022 has one clear vision: to reimagine the future through collaboration across industry and sector and to drive investment into infrastructure, people and new modes of transportation.

'Through its thinking bigger approach, whether it's for business, personal needs or by aligning with our experts, Nedbank strives to complement clients on their journey towards shifting the dial in the automotive sector via our manufacturing propositions, digital marketplace platforms through Avo, sustainable investments by our Corporate and Investment Banking business and MFC at a dealership level,' says Amith Singh, the Nedbank National Manager for Manufacturing. 

According to Statistics South Africa, the manufacturing sector has seen a measurable rise in output in the past year to July 2022 of 3,7%, a solid step in the right direction after the year-on-year decline presented by the previous three months. This growth is a positive light after a year of complexities that included load-shedding, unrest and economic instability. To continue on a more resilient footing, the sector requires agile partnerships with organisations that reflect a deep understanding of the industry and consistent investment that enhances competitiveness within the market. 

'The ethos that defines South African Auto Week 2022 is collaboration and shared vision,' says Singh. ‘This is key to the long-term sustainable success of the sector. Deep, lasting, value-adding relationships, developed with key industry stakeholders and companies, results in a more holistic approach to business across the value-chain and for companies to create tailor-made solutions that meet very real business needs.' 

Alongside collaboration and shared growth, South African Auto Week 2022 is also focused on engagement across the value chain. The event will play host to original equipment manufacturers, vehicle component manufacturers and suppliers, regulators and policymakers, international investors, high‑profile company executives and decision-makers and pan-African auto leaders. This is a critical platform from which to unpack key challenges and to explore new ways of building financial stability within the sector. 

“It’s essential that organisations playing in the automotive retailing and manufacturing sub-segments are provided with solutions that are relevant to their value chain, and that recognise the importance of sustainable mobility and new energy vehicles,' says Thabang Mahlangu, Sector Lead – Automotive, Nedbank. 'Nedbank Corporate and Investment Banking is at the forefront of ongoing robust discussions with automotive bodies, such as the National Association of Automotive Components and Allied Manufacturers and the National Association of Automobile Manufacturers of South Africa to engage in collaboration and transformation efforts around sustainability, electric vehicles and social impact.' 

Nedbank has bespoke and innovative financial solutions designed to grow businesses and strengthen competitiveness as it aims to accelerate digital transformation of the automotive sector through digital platform business models and technological innovations that the industry is looking to leverage. Avo SuperShop, a multi-sided digital marketplace platform, supports businesses with full e‑commerce capabilities that include payments and logistics and enable businesses to source from, or sell to, anywhere within South Africa on a single platform.

“At the core of our platform play is working capital optimisation, allowing us to combine our core propositions with next generation solutions to unlock efficiencies in the value chain,” concludes Olebogeng Mogale, Executive for Avo B2B Marketplace. 

The Avo platform already serves more than 1,5 million digital shoppers and is a fully fledged digital marketplace that gives buyers and sellers a unique space to transact and engage. 'Avo Auto is an end-to-end vehicle-buying and -selling digital marketplace platform that is accelerating digital transformation in the automotive retail industry, offering dealerships an alternative route to market through innovative capabilities and access to qualified leads,' says Julie Vetter, Executive for Avo Auto.

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