AIDC-EC and Productivity SA Formalise Strategic Alliance to Elevate Regional Competitiveness

 In a decisive move to fortify industrial development in the Eastern Cape, the Automotive Industry Development Centre Eastern Cape (AIDC-EC) has entered into a landmark partnership with Productivity SA. The Memorandum of Understanding (MoU), signed on Monday, 14 April 2025 at AIDC-EC’s head office in Port Elizabeth, ushers in a dynamic collaboration poised to accelerate productivity, stimulate enterprise growth, and enhance long-term regional competitiveness.

The agreement, endorsed by the Chief Executive Officers of both organisations, signifies the establishment of a synergistic relationship underpinned by shared strategic objectives. This inaugural partnership will see the two entities co-develop and implement targeted initiatives spanning productivity enhancement, enterprise development, export competitiveness, and inclusive economic participation—particularly within township and SMME ecosystems.

“This partnership represents a forward-thinking response to the evolving industrial imperatives of the Eastern Cape. It reaffirms the commitment to shaping a region that is not only industrious but globally competitive—driven by excellence, agility, and purposeful collaboration,” stated Mr Thabo Shenxane, CEO of AIDC-EC.

Central to the MoA is a comprehensive programme of action aimed at embedding a culture of continuous improvement and operational excellence across key sectors. The collaboration will initially focus on the following priority areas:

• Kaizen, Workplace Transformation, and Supplier Efficiency Programmes, leveraging enterprise clustering models to enhance productivity across value chains.

• Export Competitiveness Enhancement, equipping local enterprises with the tools and capabilities to access and thrive in global markets.

• Township Automotive Hubs and Structured Incubation Support, designed to foster entrepreneurship and uplift emerging businesses.

• Work Placement and Exposure Programmes, creating opportunities for unemployed individuals to gain critical industry experience.

• Annual Productivity Awards, to acknowledge and celebrate organisations that demonstrate measurable productivity improvements.

The agreement also establishes a joint platform for national and regional productivity advocacy, aligning closely with the Africa Kaizen Initiative and the broader strategic objectives of the Japan International Cooperation Agency (JICA). Through coordinated awareness campaigns, both entities aim to instil a mindset of performance, innovation, and accountability across the business landscape.

Additionally, the organisations have agreed to collaborate on research and innovation projects, including participation in the Annual Executive Opinion Survey of the Institute for Management Development (IMD) World Competitiveness Yearbook. This effort will enhance data-driven decision-making and benchmark South Africa’s performance in key areas of productivity and competitiveness.

“This collaboration goes beyond the formalities of agreement - it is a shared commitment to catalyse inclusive growth and unlock productivity-led transformation across the region,” noted the Acting CEO of Productivity SA, Mrs Amelia Naidoo.

As a strategic enabler within the provincial economy, AIDC-EC remains steadfast in its mission to foster sustainable industrial ecosystems and economic resilience. This MoU represents not only a partnership of institutions, but a partnership in purpose—dedicated to crafting a competitive, future-ready Eastern Cape.