Preparation Program for Investment in RSA Automotive Sector (IFC-606041)

Countries
  • South Africa
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 13, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Borrower information not provided at the time of disclosure
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Advisory Services
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Project Cost (USD)
$ 0.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jan 18, 2023

Disclosed by Bank Nov 18, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank provided infoprmation, the IFC's RSA Automotive Local Supplier Development Program supports the Government of South Africa's efforts to integrate local firms into the value chains for the automotive industry and thereby deepen the domestic manufacturing sector. The initiative, which engages both IFC's advisory and investment arms (over the long term) will support development by the National Association of Automotive Component Manufacturers (NAACAM) of an electronic "Linkages" platform that will match the competencies of local Tier 2 and 3 suppliers (skills, manufacturing capacity and BBBEE ratings) to the business needs, local component quality/quantity specifications and transformation profiles of OEMs and Tier 1 suppliers in order to optimize benefits under the South Africa Automotive Plan. The Program is intended to address profound challenges to the further growth of the industry posed by the relatively weak capacity of local suppliers. Development results expected from the advisory programs include increased FDI into South Africa, the creation of high-skilled jobs and the development of skills for South Africans especially those from disadvantaged demographies.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
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*Contact information not providd at the time of disclosure*

ACCESS TO INFORMATION

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ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org 

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