Ricochet News

MEC Somyo ecstatic about new Chinese Investment

Aug 20, 2016
MEC Somyo ecstatic about new Chinese Investment

Eastern Cape MEC for Economic Development, Environmental Affairs and Tourism, Sakhumzi Somyo has welcomed the news of the signing of an historic R11-billion investment by Coega Development Corporation and Beijing Automobile International Corporation (BAIC).

This investment is set to contribute phenomenally to economic growth and much needed job creation in the province. It’s a stamp of confidence in our province and its people by international investors. This is something we have been working on so hard behind the scenes and we are glad it has finally been concluded,” MEC Somyo said.

The Coega Development Corporation (CDC), operator of the 11 500 hectares of the Coega Industrial Development Zone (IDZ), has successfully concluded a deal with BAIC of R11-billion for a completely knocked down (CKD) automotive manufacturing plant in the Coega Industrial Development Zone.

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 no less than 26 bilateral agreements valued at approximately R100-billion.

According Minister of Trade and Industry, Dr Rob Davies the 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 on Investment”, says Davies.

Minister Davies adds 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. - getnews.co.za