Johannesburg — The City of Johannesburg has strengthened its commitment to township economic development with the official opening of the Alexandra Automotive Hub, a new facility designed to support local automotive businesses, develop technical skills and create sustainable employment opportunities.
Officially opened by Executive Mayor Cllr Dada Morero on Thursday, the facility, located in Region A, aims to help automotive entrepreneurs in Alexandra and surrounding communities transition from informal operations into established, compliant and competitive businesses capable of participating in the mainstream economy.
Developed by the Johannesburg Development Agency (JDA) through the City’s Department of Economic Development, the hub provides dedicated workshops, vehicle wash bays, offices and shared support facilities. The Automotive Industry Development Centre (AIDC) will anchor the facility by offering technical training, accreditation, business support and links to industry opportunities.
Speaking at the launch, Morero said the township economy must be recognised as a central driver of South Africa’s economic growth and make a meaningful contribution to the country’s gross domestic product (GDP).
“The township economy is where most of our people work, buy and sell. When we strengthen it, we strengthen Johannesburg. Our task is to formalise, equip and connect township businesses so that they can grow, create jobs and participate meaningfully in the mainstream economy,” said Morero.
He said the Alexandra Automotive Hub gives practical expression to the City’s Growth and Development Strategy 2040 by investing in infrastructure that supports an inclusive, competitive and employment-intensive economy.
Morero emphasised that township entrepreneurs should have access to the facilities, skills and commercial networks required to grow their businesses and compete with established enterprises.
“Township entrepreneurs must not be excluded from the mainstream economy. This hub provides a platform for local automotive businesses to access appropriate premises, acquire skills, build credibility and connect with markets. We want to see businesses progress from informal operations to registered, compliant and certified enterprises that can compete for contracts and service larger clients,” he said.
Acknowledging that the project had taken longer than anticipated to complete, Morero said the City remained committed to delivering infrastructure that translates public investment into tangible benefits for residents.
He called on vehicle manufacturers, dealerships, insurers, fleet owners, automotive parts suppliers, banks and development finance institutions to partner with the City to support businesses operating at the hub.
“The township economy must be at the centre of our economic development efforts. Johannesburg is open for business and Alexandra is open for business. We invite the private sector to invest in these businesses, develop local talent and help create sustainable employment opportunities,” he added.
Boosting Gauteng’s automotive industry
Gauteng MEC for Economic Development and Agriculture Vuyiswa Ramokgopa welcomed the facility, describing it as an important step towards expanding the province’s automotive industry and creating opportunities for small, medium and micro enterprises (SMMEs).
She said the automotive sector plays a significant role in the provincial economy, with considerable potential to attract investment, strengthen local supply chains and generate employment.
The hub is expected to help local automotive enterprises improve their operations, access specialised technical support and establish stronger relationships with established players across the automotive value chain.
City of Johannesburg Member of the Mayoral Committee (MMC) for Economic Development Nomoya Mnisi said the facility represents an opportunity to translate public investment into practical support for entrepreneurs, artisans and young people seeking opportunities in the automotive industry.
She said providing businesses with a structured operating environment would help promote sustainability while opening pathways for skills development, workplace exposure and collaboration with industry partners.
Mnisi noted that the automotive industry offers a broad range of career opportunities beyond conventional vehicle repairs, including auto-electrical work, vehicle diagnostics, specialised technical services and business ownership.
She stressed that partnerships with training institutions and employers would be essential to helping young people convert their skills into sustainable livelihoods.
Skills development and business support
AIDC CEO Andile Africa outlined the hub’s business-support model, which prioritises small and emerging automotive enterprises and seeks to connect them with technical expertise, operational assistance and market opportunities.
“The model is intended to help participating businesses improve their operations, strengthen their business management capabilities and access opportunities within the wider automotive value chain,” said Africa.
Through this approach, the facility aims to address some of the barriers that prevent township-based automotive businesses from growing, including limited access to suitable premises, technical expertise, accreditation and established commercial networks.
By bringing infrastructure and business-development support together in one location, the hub is positioned to help participating enterprises strengthen their credibility and improve their ability to compete for contracts and serve larger customers.
The initiative will also promote the participation of women, young people and persons with disabilities, reinforcing the City’s commitment to inclusive economic development and broader access to economic opportunities.
Connecting Alexandra to economic opportunities
Situated within the Alexandra, Marlboro and Wynberg economic corridor, the hub has the potential to strengthen commercial links between township enterprises and established business and industrial centres, including Sandton. Its location creates an opportunity to connect emerging automotive businesses with a wider economic ecosystem, enabling them to access potential customers, suppliers, technical expertise and investment opportunities.
The facility also reflects the City’s broader approach to township economic development, which seeks to move beyond supporting informal trading towards building productive, sustainable enterprises that contribute to economic growth and employment.
For Alexandra’s automotive entrepreneurs, the hub offers a platform to professionalise their operations, improve their technical capabilities and pursue opportunities within an industry that supports a wide range of businesses and occupations.
The City’s challenge now will be to ensure that the facility translates its infrastructure and support services into measurable outcomes, including business growth, skills development, increased market access and job creation.
The launch of the Alexandra Automotive Hub forms part of Johannesburg’s wider efforts to strengthen local enterprise, expand economic participation and build a more inclusive city economy in which township businesses can grow, compete and contribute meaningfully to Johannesburg’s long-term development.