Last week, the National Automobile Dealers’ Association (NADA) and Absa Bank Limited (Absa) formalised a strategic collaboration agreement aimed at strengthening the South African automotive dealership ecosystem through targeted initiatives focused on professional development, transformation, and operational excellence.
While the two organisations have enjoyed a longstanding working relationship, this new agreement marks a significant milestone in aligning their efforts to deliver greater value to dealers and car buyers alike.
The agreement outlines several key focus areas, including:
- Elevating Finance & Insurance (F&I) Standards: A joint F&I Awards programme will recognise outstanding performance and professionalism in dealership F&I services—an increasingly critical touchpoint in the car-buying process.
- Investing in Professional Development: Continued Professional Development (CPD) programmes will help F&I managers and dealership personnel stay informed on industry trends, sharpen their skills, and deliver exceptional service.
- Driving Transformation and Inclusion: The partnership will support the growth of transformation, with a strong focus on empowering historically disadvantaged individuals and fostering inclusive industry growth.
Speaking at the official signing ceremony, Charl Potgieter, Managing Executive Absa Vehicle and Asset Finance, reflected on the importance of the agreement: “It’s a privilege to be here today. While it may feel unusual to formalise something that has existed informally for so long, this moment marks a renewed commitment to strengthening our partnership with NADA. Our ambition is clear – to support the growth and sustainability of the automotive industry, particularly through strong dealer partnerships.”
He acknowledged the vital role dealerships play in South Africa’s economy within an industry that contributed over 5% to GDP in 2024 and noted the growing need for collaboration in areas such as customer education, dealer training, and fraud prevention.
“When we come together as an industry to tackle shared challenges, we are far more effective. Partnerships are not just important, they’re part of our DNA,” added Potgieter.
NADA Chairperson Brandon Cohen welcomed the agreement and emphasised that the partnership aligns with NADA’s broader objective of working inclusively with all financial institutions.
“This collaboration with Absa is a significant step in our ongoing mission to foster meaningful, cross-sector partnerships that benefit the entire dealer network. As a representative body, NADA engages with all major banks, which all play a critical role in supporting customers, whether purchasing new or pre-owned vehicles.”
Cohen added that the agreement reflects a proactive approach to modern challenges. “The rise in fraud and shifting consumer behaviours demand updated methods and deeper collaboration. As dealers, we are often the face of the bank at the point of sale, so stronger alignment only improves outcomes for the customer, the dealer and the financial industry.”
“We are equally excited at the opportunity to jointly recognise the excellence that exists across our dealer networks, particularly in the F&I space. This partnership allows us to celebrate that excellence while investing in the future of our people and the resilience of our sector.
“The Collaboration Agreement with Absa is a significant milestone in our long-standing relationship and an exciting prospect for advancing the South African automotive dealership sector. We are confident that this strategic partnership will create substantial value for both NADA and Absa, as well as our respective stakeholders, and contribute to a more vibrant and progressive industry,” concluded Cohen.
