New manufacturers bring investments in ELIDZ automotive hub to R3.3bn

The East London Industrial Development Zone on Tuesday announced a further three manufacturing investors were joining its automotive hub, bringing the total to 16 manufacturers, with investment topping R3.3bn.

In a keynote address, premier Oscar Mabuyane said a lack of job creation was the province’s biggest threat, but the ELIDZ was countering it.

The development employed 2,000 direct employees “and we know that for every job in the zone, there are three or four more outside supplying goods and services”.

With the pandemic buffeting the economy, the auto sector was performing well “against all odds”.

However, becoming more inclusive and enabled, in business terms, was still a target that had to be reached.

Mabuyane said a flourishing auto sector was a powerful force when it came to consumer goods and services, referring to the leather seats in Mercedes vehicles.

The Eastern Cape has a strong agriculture sector and beneficiation should result in the province’s cattle hides being used for car seats.

The 16 investors all supply Mercedes-benz SA with a variety of automotive components for the new C-class model.

A “new vision” for the zone was incorporated in the government’s master plan for 2035 that would include supplier support, and an announcement on the support project’s details would be released “at the correct time”.

Breaking away from the IDZ focus, he said that the furore around Shell’s imminent sonar blast exploration on the Transkei Wild Coast could not be done at the expense of the coastline, despite desperately poor people needing jobs. However, SA’S government was “a responsible one” and people should “give [the exploration] a chance”.

The project had to comply with environmental standards. Buffalo City Metro mayor Xola Pakati said the IDZ was at the core of growing the city, thanks partly to its reputation for solid governance and business partnerships. The zone had become a critical investment destination, with Mercedes at its centre. While the focus was on the automotive sector, he welcomed the increasing diversification, which was one reason that the 40 investors had managed to bring in R7.7-billion since 2007.

The zone’s CEO, Simphiwe Kondlo, said hosting the 16 suppliers of the third Mercedes Cclass model was a tribute to the efforts of all involved at the zone. The attention to SA’S top vehicle manufacture had given the zone a pathway to other manufacturers, which in turn enabled diversification.

Economic development, environmental affairs & tourism MEC Mlungisi Mvoko said that while the zone’s growth was impressive, it was its six consecutive clean audit reports that had really got his admiration.

“The huge investment it has attracted, and its resilience, has showcased IDZ to the world.”

Small business development minister Stella Ndabeni-abrahams said SA was on the road to economic recovery, and the zone would play a role in securing the 11m jobs promised in the National Development Plan. She said SA had to cut red tape associated with developing new businesses. BCM already had a one-stop shop for business expansion.

Without a huge effort to create employment, the country could face a repeat of the July looting and violence.