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ECONOMIC BOOM

FOR NELSON MANDELA BAY REGION

The future looks bright for a city full of prospects, and if the recent investment interest in the Nelson Mandela Bay region by Chinese automotive giants is an indication to go by, the economy of the city is destined for a major economic boost.

One of the main drivers and supporters of economic growth for the region is Nelson Mandela Bay Executive Mayor, Cllr Zanoxolo Wayile, who has been thedriving forcebehindnegotiations to seal the deal between Chinese automotive giants, First Automobile Works (FAW), and the Coega Development Corporation (CDC).

The much anticipated investment by FAW took a giant step closer to implementation when the investment lease agreement was signed with the CDC in March.

The investment, valued at over R600 million, will see FAW construct a state-of-the-art truck and passenger car plant at the Coega Development Industrial Development Zone. The investment, funded jointly by FAW and China-Africa Fund will, during the frst phase, generate 500 permanent jobs for the region, with more jobs expected when FAW expands operations to include the production of passenger vehicles. The plant’s initial output will be 5 000 trucks per annum, with this fgure expected to appreciate when the plant starts producing light commercial vehicles and passenger cars.

Mayor Wayile, who paid a visit to China last year to actively participate in negotiations, hailed the signing as ground breaking and a much needed boost for the local economy. “We frmly believe that this investment will put us on the right track as

we seek to tackle the challenges of poverty, unemployment and inequality,” said Mayor Wayile.

Also supporting the development, Eastern Cape Premier, Noxolo Kiviet, said that it was always gratifying to see ideas being translated into concrete actions powerful enough to effect change in the lives of ordinary people.

The Premier also noted that the FAW investment was in line with the Provincial Government’s strategic objective of repositioning the province as an investment hub.

“This investment is in line with the objects of the new growth path and the provincial growth strategy and should send a signal to other potential investors that Coega is a viable investment destination,” said Premier Kiviet.

According to FAW Chairman, Jin Yi, the truck assembly plant in Coega will contribute to a healthy growth in bilateral trading between South Africa and China. “The launch is the frst of a number of initiatives indicating our confdence in the region and the country. FAW has full confdence in Coega to deliver on its promise.”

Chairman Yi also intimated that trucks assembled at the Coega plant will not only be for the South African market, but for other African countries as well.

“This agreement indicates a frm relationship between Coega and FAW. We will also speed up our enterprise development initiatives to ensure skills development”, he said.

Breaking new grounds at the start of the construction of the FAW development at the Coege Industrial Development Zone were Eastern Cape Premier, Noxolo Kiviet, MEC for Economic Development, Mcebisi Jonas, Executive Mayor, Cllr Zanoxolo Wayile with FAW Executive and CDC representatives.

12 UBUNTU COMMUNITY MAGAZINE MARCH I APRIL 2012