By Neo Semono
In 2012, during the Presidency’s budget vote, President Jacob Zuma announced that South Africa would be turned in what he referred to as a “massive construction site”. It was the beginning of a massive investment into South Africa’s infrastructure to grow the economy.
Government had realised that to be able to grow the economy faster and create the much-needed jobs, it had to pay attention to infrastructure development that supports growth.
Manufacturing and industrialisation have been key features of the infrastructure drive with several projects launched since 2009 to boost local manufacturing.
Among these projects was the unveiling of the R600 million vehicle assembly plant in Port Elizabeth by Chinese heavy vehicle manufacturer First Automobile Works (FAW).
At the launch in July 2014 it was revealed that FAW would see the production of up to 5000 trucks in its first phase. The assembly plant would create 400 jobs.
At the time, President Zuma said the plant would go a long way in boosting the country’s efforts to achieve a target of 5% economic growth by 2019 as well as to enabling the right environment for business to grow.
Government has supported the motor industry with this support having had a substantial effect on the expansion of both imports and exports of vehicles.
Echoing the sentiments of the National Development Plan (NDP), President Zuma said government is also looking to transform the local automotive industry. The NDP highlights the country’s need to invest in a strong network of economic infrastructure so as to support the country’s medium and long term economic and social objectives.
Though many might argue that the transformation of the local automotive industry will take time to see results, the launch of the plant –which is located in Zone 2 of the Coega Industrial Development Zone (IDZ) - is taking the right steps to enable a difference.
The production plant is funded jointly by China FAW Group Corporation and the China-Africa Development Fund.
The R600 million investment by the company was seen as a vote of confidence in the Eastern Cape Province and South Africa as a competitive investment destination. The initiative also augurs well for skills development and training in the Eastern Cape.
The investment has also positioned South Africa well within the global automotive manufacturing network.
“It proves once again that we have an attractive operating environment to host global multinational companies,” said the President.
This proves that the South African government remains committed to growing and developing the automotive sector.
It is evident that the country is moving in line with the NDP’s call to attract private-sector investment through the launch of the vehicle assembly plants like FAW which has been in the South African market for a total 20 years. – SAnews.gov.za
