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Consumer demand for South African vehicles has doubled
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South Africa, enjoying strong economic growth, is seeing a boom in its automotive industry with both exports and local demand for vehicles doubling over last year. The process of creating a more broadly based South African economy has been given a boost by the country’s growing automotive sector.
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While economic growth has picked up over the past two years and the tourist sector continues to record strong growth, South Africa remains overly reliant on mining and the government is keen to strengthen trading links with the rest of the world.
In addition, rapid job creation is required if the country’s serious socio-economic problems are to be tackled and the racial imbalances of the past overcome.
Other sectors will also play their role, but the boom in the automotive industry brings benefits on a number of counts. The sector provides skilled, relatively well paid employment in its own right, both in the core production plants and in suppliers.
Its emergence has provided a new strand to the economy and the role of the export market has helped to tie the country more closely into the international economy.
Finally, the import of components and the export of both assembled vehicles and components have provided more business for the growing South African ports.
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