The Beijing Automobile International Corporation (BAIC) has chosen the Coega Development Corporation in Eastern Cape Province for its 11 billion Rand (about 816 million US dollars) vehicle manufacturing plant investment in South Africa.
Minister of Trade and Industry Rob Davies says this is the biggest automotive investment in Africa in the last 40 years. The investment is significant and will deepen South Africa’s economic relationship with China.
“The size of this investment demonstrates confidence by China and confidence in South Africa as an investment destination,” Davies said, adddig that the Coega Development Corporation (CDC), which operates the 11,500-hectare Coega Industrial Development Zone (IDZ), will be the beneficiary of a completely knocked down (CKD) automotive manufacturing plant.
Davies says the project will position Eastern Cape Province as an automotive hub and has the potential of deepening the component supply chain, job creation and economic development.
“The investment is strategic and is a major project in terms of our bilateral relationship and a key project supported by the Inter Ministerial Committee on Investment,” Davies adds.
BAIC is a Chinese state-owned enterprise and holding company of several automobile manufacturers of passenger cars, military vehicles, SUVs, trucks and buses.
The BAIC investment is an outcome of the Forum on China-Africa Cooperation (FOCAC) which was held in Johannesburg in December last year, when President Jacob Zuma and Chinese Prime Minister Xi Jinping signed no less than 26 bilateral agreements valued at approximately 100 billion Rand.
Source: NAM NEWS NETWORK