Chinese Automaker's Factory Deal Sparks Push for Local Job Creation

Chery International’s acquisition of the Rosslyn factory in Tshwane puts a concrete question before South African communities: will a major new manufacturing presence translate into real jobs and opportunity for the people living closest to it?

Deputy President Paul Mashatile raised that question directly at the Chery International Factory Acquisition Celebration on Friday, calling on the Chinese vehicle manufacturer to prioritize local businesses and young entrepreneurs in its supply chain. For residents of Mabopane, Soshanguve, Ga-Rankuwa, and Hammanskraal, the factory’s arrival carries weight beyond the factory floor. “This factory is therefore a beacon of hope, skills and future opportunities for the youth of Mabopane, Soshanguve, Ga-Rankuwa and Hammanskraal,” Mashatile said.

The communities surrounding Rosslyn have long sat adjacent to South Africa’s automotive manufacturing hub without always sharing in its benefits. Mashatile’s message was pointed: that must change. He called on Chery to work collaboratively with government to identify and promote local suppliers, particularly those owned by young South Africans, and to open pathways in logistics, components, services, and technology for youth-led enterprises.

The stakes are broad. South Africa’s automotive sector sustains hundreds of thousands of jobs, generates exports, and cultivates technical skills across the economy. Its health, Mashatile emphasized, depends fundamentally on a robust supplier base. “For it is in the strength of our supply chains that the resilience of our industry is secured, and it is in the creativity of our young entrepreneurs that the future of our economy is written,” he said. Capacity building, mentorship, and market access for township-based businesses are not optional extras; they are, in his framing, central to making the investment work for the country.

Meanwhile, the sector faces a transition that will test every player in it. Global manufacturing is shifting toward new energy vehicles, and Mashatile warned that South Africa risks losing significant export markets by 2035 without a corresponding shift in domestic production capacity. Chery’s commitment to new energy vehicles and its expanding NEV range positions the company as a potential leader in that shift across Africa, though the benefits to South African workers and suppliers will depend on deliberate policy choices made now.

The Rosslyn acquisition follows a government working visit to China in November 2023, during which South Africa was promoted as an investment destination. Mashatile characterized the deal as a signal to global investors that the country remains a trusted location for industrial development despite worldwide economic uncertainty, reinforcing its position as the automotive gateway to Africa.

For that signal to carry meaning for ordinary citizens, skills development must keep pace. Mashatile underscored the need for greater investment in apprenticeships and technical education to prepare young South Africans for advanced manufacturing and technology-driven industries. Government, he stressed, remains committed to fostering an enabling investment environment while protecting domestic manufacturing capabilities, with the explicit aim of ensuring industrialisation benefits the communities adjacent to manufacturing centers.

“South Africa is open for investment, ready for innovation, and committed to building an economy that offers opportunities for all,” Mashatile said. The harder question, as Chery begins operations at Rosslyn, is whether the supply chain commitments made on Friday will be tracked, enforced, and felt in the neighborhoods just beyond the factory gates.