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R12 billion Chinese investment boost for SA car industry
Brief:South Africa's motor industry will receive a major boost after the Beijing Automobile Works signed a deal with the SA Industry Development Corporation.
A Chinese vehicle manufacturer is set to become a major player in the local car manufacturing industry. Beijing Automobile Works has signed a deal with the SA Industry Development Corporation that will see a Chinese car manufacturing plant being built locally.
The deal was confirmed last week by Minister of Trade and Industry Rob Davies, Business Day reports. The investment is worth R12 billion, and the new plant, which might be based in East London, will create about 2 500 direct jobs and 7 500 indirect jobs.
At the China-Africa summit held in Sandton, Johannesburg, last week, Chinese President Xi Jinping pledged $60 billion (R861 billion) towards development of the African continent.
“China decides to provide a total of $60 billion (R861 billion) of funding support that includes $5 billion(R71 billion) of grants in zero interest loans and $35 billion (R502 billion) in preferential facility and export credit loans and concessional loans,” Jinping was quoted saying in an Africa News Agency report. China and South Africa also signed trade agreements to the value of R94 billion.
Speaking at the summit on Saturday, President Jacob Zuma commended China for its role in assisting South Africa.
“China was there when we needed help most and we will never forget that solidarity and comradeship. Africa and China are together a fraternal community with a shared and prosperous future. Africa and China want to prosper together.”
He also told the summit delegates that China and South Africa have built an even stronger relationship.
“The Johannesburg Summit has in essence propelled this partnership to that of a comprehensive strategic and co-operative partnership. In that way we have ensured that we are better able to address the pressing needs of our peoples.”

Source: Sources: Business Day

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