The National Automobile Dealers' Association (NADA) and Absa Bank Limited have signed a strategic collaboration agreement to strengthen South Africa's automotive dealership ecosystem through professional development, transformation, and operational excellence initiatives.
Whilst the organisations have maintained a longstanding working relationship, this formal agreement represents a significant milestone in aligning their efforts to deliver enhanced value to dealers and car buyers.
The agreement outlines several strategic priorities. A joint Finance & Insurance (F&I) Awards programme will recognise outstanding performance and professionalism in dealership F&I services—an increasingly critical touchpoint in the car-buying process. 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. The partnership will also support transformation growth, with particular focus on empowering historicallydisadvantaged individuals and fostering inclusive industry development.
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. Whilst it may feel unusual to formalise something that has existed informally for so long, this moment marks a renewed commitment tostrengthening our partnership with NADA. Our ambition is clear – to support thegrowth and sustainability of the automotive industry, particularly through strongdealer 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 forcollaboration in areas such as customer education, dealer training, and fraudprevention.
"When we come together as an industry to tackle shared challenges, we are farmore effective. Partnerships are not just important, they're part of our DNA," addedPotgieter.
NADA Chairperson Brandon Cohen welcomed the agreement and emphasised thatthe partnership aligns with NADA's broader objective of working inclusively with allfinancial institutions.
"This collaboration with Absa is a significant step in our ongoing mission to fostermeaningful, cross-sector partnerships that benefit the entire dealer network. As arepresentative body, NADA engages with all major banks, which all play a criticalrole in supporting customers, whether purchasing new or pre-owned vehicles."
Cohen added that the agreement reflects a proactive approach to modernchallenges. "The rise in fraud and shifting consumer behaviours demand updatedmethods and deeper collaboration. As dealers, we are often the face of the bank atthe 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 thatexists across our dealer networks, particularly in the F&I space. This partnershipallows us to celebrate that excellence whilst 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 Africanautomotive dealership sector. We are confident that this strategic partnership willcreate substantial value for both NADA and Absa, as well as our respectivestakeholders, and contribute to a more vibrant and progressive industry," concludedCohen.
