Gibela CEO on how to revitalize SA’s rail sector

South Africa's railway sector is set for a revival as Gibela, a leading rail Original Equipment Manufacturer (OEM), embarks on a mission to breathe new life into the country's rail industry. With a groundbreaking contract to manufacture 600 trains over the next decade, Gibela is at the forefront of developing local train manufacturing capabilities and upskilling the workforce. In an exclusive interview with CNBC Africa, Hector Danisa, the CEO of Gibela, shared insights into the company's localization strategy and efforts to reinvigorate South Africa's rail sector. The conversation shed light on key considerations for inclusive infrastructure development and the significance of social-economic impacts. Danisa highlighted the importance of high local content percentage in production, aiming for 65% of spending to benefit South African manufacturers. This focus not only drives economic growth but also aims to create a ripple effect of job creation and skills development across the country. With a substantial investment of 6.5 billion rand in the local economy, Gibela has already made significant strides in establishing a state-of-the-art manufacturing facility and enhancing technology innovation. Collaborations with educational institutions for research and development further underscore Gibela's commitment to fostering a sustainable ecosystem for the rail industry. As the company strives to ramp up production to meet contractual obligations, challenges in building a robust supply chain remain a key focus. However, with a strategic approach to supplier development and technical skills enhancement, Gibela is confident in achieving its targets and rejuvenating South Africa's rail sector. The journey towards localization and upliftment may be a long one, but Gibela's dedication to sustainable growth and investment in the industry sets a promising precedent for the future of rail transport in the country.