Transformation goes hand in hand with localisation. In this regard, the launch of a R6-billion Automotive Industry Transformation Fund [AITF] to support black participation in the automotive industry supply chain, will be imperative. The AITF marks the start of a sector-wide initiative to transform the automotive industry by broadening and deepening the participation of black and historically disadvantaged entrepreneurs in the sustainable growth and development of the industry. The Fund means that South Africa’s big OEMs – BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen – will, for the first time, meaningfully participate and comply with all five elements of the generic broad-based black economic empowerment [BBBEE] scorecard, including the ownership element. In essence, the initiative represents an equity equivalent project, in lieu of the BBBEE scorecard ownership points.