Major vehicle manufacturers move to invest in SA
China pledges R206bn, Saudi Arabia and UAE R146bn each.
Nissan is one of the many automakers producing in Brazil, at its Resende complex outside Rio de Janeiro — auto production in Brazil took a major hit in April 2020 due to the coronavirus crisis. AFP/File/Yasuyoshi CHIBA
Besides the three major vehicle manufacturers – Ford, Mercedes-Benz and Nissan – that have shown confidence in
the South African economy by expanding their investments, many Asian-based automobile companies have pledged to do the same.
This was announced during the State of the Nation Address (Sona) debate in parliament by Minister of International Relations and Cooperation Dr Naledi Pandor, who said Isuzu, Tata Motors, Mahindra Motherson Sumi and Toyota
have expanded their investments in SA.
They responded to the Presidential investment summits and state visits by President Cyril Ramaphosa.
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Pandor said China pledged to invest $14 billion (about R206 billion), with Saudi Arabia and the United Arab Emirates $10 billion each.
“All these achievements, Mr President, during your tenure are ignored by the opposition…to create and promote the false news that nothing is being done, even when they know there is progress,” said Pandor.
“We aim to build on these successes ensuring growing global trade which is one of the best ways to fight poverty, inequality and unemployment in our country and our continent.”
She said SA was the latest signatory to the Treaty of Amity and Cooperation that would open significant trade and development opportunities in countries belonging to the Association of Southern Asian Nations (Asean).
The deal with also see South Africa benefiting from the Regional Comprehensive Economic Partnership (RCEP) of these countries.
READ MORE: Ford invests nearly R16 billion in SA, creating 1200 new jobs
“This partnership created the world’s biggest trading bloc, estimated to account for about $26 trillion or 30% of global gross domestic product (GDP) and 28% of global trade,” said Pandor.
“The Asean countries have a total population of 650 million people and a combined GDP of $10 trillion.
“The country will leverage engagement with Asean to enhance mutually beneficial trade, investment and tourism ties and to support skills development and training for South Africans through cooperation with partners in the region.”
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