MyPE

Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

Dear Automotive Manufacturer – Welcome to Gqeberha

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By way of the 9003-hectare Coega Special Economic Zone (SEZ) located in South Africa, Gqeberha and the Nelson Mandela Bay (NMB) Logistics Park located in Kariega, the Coega Development Corporation is driving growth and development as an Automotive Hub. In fact, several of the Coega SEZ’s international investors operate in the automotive sector, including renowned Chinese corporation, the Beijing Automobile International Corporation (BAIC) SA, amongst others, participating at the 15th BRICS Summit, currently underway at the Sandton Convention Centre and Gallagher Convention Centre, north of Johannesburg.

BAIC SA, with an 88 969 m2 vehicle assembly plant located in Zone 1 of the Coega SEZ, is an official vehicle partner of the BRICS Summit, having handed 25 vehicles to the South African Department of International Relations and Cooperation, to transport BRICS dignitaries, delegates and officials during the Summit. The BAIC assembly plant was deemed as the largest single investment by a Chinese company in the automobile sector in South Africa in 40 years. The R11 billion plant is amongst several other automotive operations in the Coega SEZ and NMB Logistics Park, including FAW SA, Benteler, Faurecia, Hella, and Grupo Antolin.

The automotive industry is a highly competitive market, and attracting foreign investment requires a comprehensive approach. Coega’s offering to automotive investors includes, amongst others, cost-effective comprehensive manufacturing solutions in Zones 1 and 2 of the Coega SEZ and in the NMB Logistics Park. Moreover, a location in the Coega SEZ provides logistical solutions and easy access to transportation networks and export markets via the deepwater Port of Ngqura, the Port of Port Elizabeth, and the Chief Dawid Stuurman International Airport; land and buildings for lease; secure telecommunication networks; shared 24-hour security; exemption from loadshedding up to stage four and load-curtailment providing flexibility for industry operations; well-maintained bulk infrastructure ready for use; municipal services of a world-class standard; access to investor support and incentives from national, provincial, and local government; a Customs Controlled Area offering duty and VAT suspension; and a basket of investor-related services including worker selection, recruitment, and training to address specific needs.

Therefore, Coega is perfectly geared to support automotive investors, assemblers, and component suppliers alike with a diverse range of services, allowing the companies to focus on the core business of manufacturing and distribution. The Coega SEZ has the infrastructure, incentives, logistical networks, and value chain that international companies need to succeed.

While China, America, Japan, and Germany are traditionally recognised as the major global automotive makers, South Africa aims to produce 1% of the world’s cars, or 1.4 million vehicles annually, according to the South African Automotive Masterplan 2021– 35, and an investment location like the Coega SEZ is fully equipped to enable steady advancement towards this vision.

To entice international automotive sector investors, Coega offers attractive incentives and supportive policies. These include tax breaks, grants, streamlined licensing processes, and regulatory flexibility. Additionally, Coega has established a dedicated One-Stop Shop to provide comprehensive support and assistance to potential investors, guiding the organisation through the investment process and helping them navigate local regulations.

Attracting international automotive sector investors requires a holistic approach that addresses infrastructure development, workforce skills, incentives, market potential, and public-private partnerships. By focusing on these key areas, Coega ensures an enabling business environment that appeals to international automotive sector investors.

As the world looks to South Africa during the XV BRICS Summit 2023, the Coega SEZ is ready to welcome global investors in the automotive sector and other industries to join the company of other 58 operational investors.

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Port Elizabethan

This author is a 'catch-all' for occasional articles and letters written to MyPE. The Author of each article can be found in the signature at the bottom of each individual article.