Funding

Automotive SME Credit Fund

Unlocking high-value supply chains integrating township auto machines and panel beaters into national automotive value chains

Township-based panel beaters and motor mechanics are often locked out of lucrative insurance and fleet repair contracts because they cannot afford to pre-purchase parts or carry the cash flow burden while waiting months for payments.

TCS has developed a specialized R120 million credit facility to break this cycle and integrate them into formal supply chains.

Key program features include

Supplier-Backed Credit Guarantees

TCS extends credit lines to SMEs to purchase from pre-approved suppliers, allowing automotive SMEs to access parts on credit.

Profitability

SMEs can unlock cash flow to enable them to engage on larger work flow from insurers and fleet operators, giving them the liquidity to scale operations.

Structured Risk-Sharing Model

Panel beaters contribute 20% co-risk capital, ensuring shared accountability and disciplined financial behavior.

This program is implemented in partnership with the African Panel Beaters and Motor Mechanics Association (APMMA), Santam, Hollard, and a network of approved parts suppliers and logistics firms.

Market Access and Networking Outcomes

  • Enables township workshops to qualify for and deliver on government fleet and insurance contracts (e.g. RT46 scheme)
  • Integrates township automotive SMEs into formal insurance claims value chains
  • Provides real-time transaction records, enabling these SMEs to build credit histories and supplier trust
  • Creates networks between SMEs, suppliers, insurers and logistics firms, strengthening the overall automotive ecosystem in townships