The Eastern Cape Development Corporation (ECDC) has introduced a R50-million finance scheme to support micro, small and medium-sized automotive component suppliers and aftermarket service providers in the Eastern Cape. ECDC CEO Ayanda Wakaba highlighted that the scheme aims to address funding gaps faced by small operators due to limited resources, lack of business history, collateral and market barriers. The scheme offers a 70% loan and 30% incentive to eligible applicants who have operated for at least 12 months and are majority black-owned. The funding ranges from R300 000 to R1 million, intended for buildings, equipment, machinery, stock, accreditation and training. The initiative is touted as the first of its kind in South Africa, with the Eastern Cape contributing significantly to the country’s automotive production and exports. Wakaba emphasized the importance of transforming the automotive industry to include historically disadvantaged individuals and new entrants, aiming to boost job creation and security within the sector.
