On 27 October Mogale City Executive Mayor Councillor Tyrone Gray, together with high-profile delegation from Italy, MEC of Economic Development Tasneem Motara and the Automotive Industry Development Centre (AIDC), unveiled the multi-million Automotive Hub in Chamdor, in Kagiso.

Executive Mayor accompanied by the Executive Mayor of Reggio Emilia City in Italy, Luca Vecchi and the MEC, handed over the state-of-the-art body repair Chamdor Automotive Hub to the local community.

In his welcome address, the elated Mayor said such strategic partnerships that includes communities spur growth in the city’s economy. “We are proud to be part of a strategic partnerships that seeks to uplift and support the disadvantaged community of Kagiso. This partnership will also unlock business opportunities for young and unskilled people of the area. We are looking forward to seeing many such projects coming to Mogale City, as we are the economic hub of the West Rand,” said the Mayor.

The Hub, which is a product of a long-lasting private public partnership between the Municipality, Gauteng Provincial Government and the City of Reggio Emilia in Italy, is of the five Automotive Enterprise Hubs to be established by the AIDC and Gauteng Provincial government.

It also forms an integral part of the AIDC and the Gauteng Provincial Government strategy to revitalize township economies, increase the skills profiles for young people and forge sustainable partnerships for employment creation. Since it opened its doors, the Auto-Hub hosts 11 SMMEs from the city providing services from panel beating of cars to mechanical work and employs more than 25 residents of the municipality. 

The Hub is also said to offer services ranging from, glassworks and battery centre, auto electrician and mechanics, motor mechanics, spray painting, locksmith and car wash among others. The small, medium, and micro companies utilising the hub, will work in partnership with Italian companies such as Corghi, Flexbimec, Airtec and Elettrouno. The companies will be offering capacity building and technical assistance.

Addressing the challenges faced by the SMMSs, MEC Motara said her department is mindful that SMME’s in the country experience the highest rate of business failure. “Hence as GED working together with our local and international partners we endeavour to support sufficiently and develop Chamdor industrial site and its SMME eco-system. We will do so by ensuring that these small medium entreprises survive this start-up period to become eventually independent and productive enterprises,” said MEC.   

Added in its statement, AIDC said the centre will afford an opportunity for SMMEs who are often left behind due to lack of infrastructure tools and conducive workspaces to conduct their business especially technical work that requires specialised machinery to operate. “This centre is also envisaged to stimulate township economy through value chain of sourcing materials and parts needed to repair the vehicles therefore will leverage various industry partners such as suppliers, Non-Profit Organizations, Government partners, to support local township entrepreneurs’ growth,” read the statement.