Eastern Cape rolls out R150m push to support township auto SMMEs

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The initiative, rolled out in partnership with the Department of Economic Development, Environmental Affairs and Tourism, Eastern Cape Development Corporation and the Chris Hani District Municipality, marks the implementation phase of the province’s Automotive Aftermarket Support Programme.

The launch took place in Manzana Village in eNgcobo, where participating small businesses began receiving tools and workshop equipment designed to improve service quality and competitiveness.

Speaking at the event, MEC Nonkqubela Pieters said the automotive sector remains central to the province’s economy.

“Leading our regional economy is the automotive sector, with agriculture as its vital partner. These industries are the backbone of the Eastern Cape; they are non-negotiable for our future,” she said.

The programme combines equipment support with skills development and compliance requirements, aiming to help informal and small-scale mechanics transition into formalised, competitive businesses. AIDC-EC says 19 registered businesses in the district have already been identified to receive support.

In addition to equipment such as vehicle lifts, diagnostic tools and workshop machinery, the programme includes training to ensure participating businesses meet occupational health and safety standards and insurance requirements.

Khaya Njingolo, executive manager of the Aftermarket Support Programme at AIDC-EC, said the initiative is focused on formalising and strengthening the township automotive economy.

“People who are fixing cars are in business as well,” he said, highlighting the need to support and regulate the sector through township and rural development initiatives.

The launch also forms part of a broader provincial push to strengthen local economic development, including a R150m commitment to infrastructure such as roads and water systems to support business activity.

By expanding access to equipment and training in rural areas, the programme aims to decentralise automotive sector support and improve participation in one of the Eastern Cape’s key industries.