Good news for the Eastern Cape’s automotive sector is that government has decided to extend the Motor Industry Development Plan (MIDP). The MIDP, which has been the driving force behind the export successes of both vehicle and component manufacturers, will be extended to 2012, according to trade minister Alec Erwin. He made the announcement at the Automechanika Trade Fair 2002 in Frankfurt, Germany. The announcement is expected to unlock more direct investment into the South African automotive industry. Through the MIDP, original equipment manufacturers can offset import duties of completely built up vehicles against exports of components and passenger cars. According to official customs figures, South African automotive component exports rose by over 47 per cent from 2000 to 2001, and continue to accelerate. Fuelling the rise from R13-billion to R1.8-billion is a combination of competitive pricing, world-class quality and delivery, and incentives through the country’s Motor Industry Development Programme (MIDP). By far the majority of exports – 70.5 per cent went to the European Union, followed by Nafta, (12.1 per cent) and the rest of Africa (7.1 per cent). Further growth is expected, particularly once the global auto market starts improving. The Eastern Cape is the major supplier of passenger vehicles to the world market, and is also a leading source of components. Erwin said the finer details regarding the programme's regulations would be determined after consultations between government and industry stakeholders. He told delegates that South Africa had a strategy to make itself a “competitive world economy” by focusing on lowering tariffs. South Africa’s competitiveness in the global automotive industry could be seen “by it having what was probably the world's greatest metal repository”. Adding to the cost advantage for investors, South Africa had an abundance of efficient energy suppliers, and its strength in information and communication technology enabled it to compete internationally. “We see ourselves as an important platform with the capacity to produce high-quality goods,” Erwin said.