Collaborative business relationship brings about an exciting new deal in the auto industry
01 Jun 2021
Country
South Africa
Year
2021
Sector
Diversified Industries
Business Unit
Corporate and Investment Banking
Specific Role
Working capital provider and Transactional banker
An exciting new deal has been signed for the automotive industry that will lead the way in the economic recovery of the province as well as in the rest of South Africa.
The auto industry in KwaZulu has been a driving force of the economy in the province for years and deals such as this one are the first steps into rebuilding the province and country’s economic activity and post Covid-19 recovery.
NMI, a client of Standard Bank in KwaZulu-Natal, acquired a diversified portfolio of dealerships from Barloworld, taking the dealership portfolio to 49 and giving it the ability to sell more automotive brands. This will allow the KwaZulu-Natal based company spread the economic benefits of the region into other areas of South Africa as well as neighbouring Botswana.
Vehicle retailers are at the coalface of the automotive supply chain. Their ability to sell vehicles into the market is a key determinant to the success of the overall automotive sector as sales means more production and jobs across the various tiers.