The South African Cabinet has welcomed the launch of the First Automotive Works (FAW) South Africa assembly and operations plant in the Coega Industrial Development Zone (IDZ) of the Nelson Mandela Bay Metro in Eastern Cape Province, a senior Cabinet official said Thursday.The US$60-million truck assembly plant, which President Jacob Zuma launches on Friday is located in Zone 2 of the Coega IDZ and funded jointly by the China FAW Group Corporation and China-Africa
It is one of the largest investments made by a Chinese company in South Africa, according to Communications Minister Faith Muthambi during a media briefing of the Cabinet proceedings.
The initiative is part of government’s interventions to make manufacturing an important pillar of the economy, and will help to further shore up foreign investor confidence in South Africa, she said.
Muthambi said the FAW plant will contribute significantly to the national goals of socio-economic development as envisioned in the National Development Plan, New Growth Path and the Industrial Policy Action Plans.
“Benefits to the Nelson Mandela Bay and the greater Eastern Cape region include generation of foreign direct investment, which will in turn create sustainable jobs and provide opportunities for skills development and training,” the minister said.