China to invest R11 billion in Port Elizabeth automotive sector
The Coega Development Corporation has signed a R11 billion investment deal with the Beijing Automobile International Corporation (BAIC), the biggest automotive investment in Africa in the last 40 years.
The CDC said that the BAIC investment is an outcome of the Forum on China-Africa Cooperation (FOCAC) that was held in Johannesburg in December 2015, where South Africa’s President Jacob Zuma and Chinese Prime Minister Xi Jinping signed 26 bilateral agreements valued at approximately R100 billion.
According to the Minister of Trade and Industry, Dr Rob Davies the BAIC investment is significant and deepens our economic relationship with China.
“The size of this investment demonstrates confidence by China and confidence in South Africa as an investment destination. 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 (IMC) on Investment,” said Davies.
Minister Davies added that the project positions the Eastern Cape as an automotive hub and has the potential of deepening the component supply chain, job creation and economic development.
The Coega IDZ is strategically located adjacent to the deep water Port of Ngqura and a few kilometres away from PE Port – with a container, car, break-bulk and bulk terminals.
In addition, the CDC has easy access to rail, road, air and sea network as it is linked to all major in land road transport routes.
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