The Coega Special Economic Zone (SEZ) is forging ahead to become the new automotive hub on the African continent.
The SEZ, which is located in the Eastern Cape, is continuing with construction in Zone 1 of the Coega SEZ BAIC site.
“The Coega SEZ is well on its way to cement its position as a new automotive hub on the continent as the only place where cumulatively over $1 billion USD Chinese automotive investment is located in just one square mile,” said the Coega Development Corporation (CDC) on Wednesday.
The CDC is wholly-owned by the South African government and the operator of the Coega SEZ.
The automotive hub is set to record even greater success as it is home to two Original Equipment Manufacturers (OEM) namely: First Automotive Works (FAW) and Beijing Automotive Industry Holding Co (BAIC). Both companies hail from China having invested R1 billion and R11 billion respectively in 2012 and 2016.
The hub is also home to over 40 companies in the automotive, logistics, chemical, metals and service sectors.
The hub is also within a 30km and 25 minute radius from several other OEMs namely Isuzu, Volkswagen and Ford – all of whom produce for the domestic and export markets.
It is also located within a 30km and 25 minute radius from at least 150 component manufacturers ranging from leather, plastic, vinyl to engines; pressed metal parts; seats and seat systems, among others.
Last September, Cabinet welcomed the R11 billion investment by BAIC to establish an automotive manufacturing plant in the SEZ.
Cabinet at the time, described the deal as historic, adding that the transaction is the biggest automotive investment in Africa in the last 40 years and reaffirms South Africa as a top investment destination for global automotive producers.
In August last year, Dr Ayanda Vilakazi, CDC Unit Head of marketing and communications, said the plant is expected to create 2 500 jobs directly and more than 10 600 jobs indirectly.
Source:Sa Gov News