R10m cash injection for Eastern Cape’s struggling Automotive Industry Development Centre

Provincial finance MEC Mlungisi Mvoko has announced that the Eastern Cape government will allocate a R10m cash injection towards the province’s struggling Automotive Industry Development Centre (AIDC-EC), with the total investment expected to be over R46m over the next three years. Mvoko revealed that the province has allocated R2m in 2026/27 and R6.3m over the next three years, while UNIDO will contribute R71.5m over the next three years. He said an added investment will go towards the expansion of the Automotive Aftermarket MSME Support Programme, which is supporting small enterprises in the vehicle repair and maintenance sector, while opening franchising opportunities for local businesses.

“Since inception, 185 MSMEs have been registered, with 40 enterprises supported in the previous financial year,” he said. The cash injection will kick-start from the 2026/27 financial year, beginning on April 1. Premier Oscar Mabuyane revealed during his state of the province address (Sopa) at the Raymond Mhlaba Chamber two weeks ago that commitments had been signed between an unnamed Chinese vehicle brand and ELIDZ’s strategic partner, the AIDC.

The province’s focus on Asia follows persistent job losses at Mercedes-Benz South Africa’s (MBSA) East London plant and contraction within the automotive sector in Nelson Mandela Bay. Click here to join the Daily Dispatch’s WhatsApp channel and get the latest news delivered straight to your phone