Major Chinese companies have invested in South Africa including the BAIC which is set to host dignitaries and media at an event celebrating a significant milestone today.
The achievements of bilateral cooperation between South Africa and China are best exemplified in the large projects that Chinese companies have invested in which benefit both sides.
Beijing Automobile International Corporation (BAIC), one of China’s largest auto manufacturers, will see its new factory in Port Elizabeth put into production in a few days.
With an investment of $800 million from BAIC, the joint venture with South Africa’s Industrial Development Corp is the single-largest Chinese investment on the African continent.
With localized production, the plant will create 2,500 direct jobs and 10,500 indirect ones, and significantly benefit the development of South Africa’s auto industrial chain, consolidating its position as Africa’s No. 1 automaker.
At its full capacity, it will generate an industrial added value of 12.4 billion yuan for vehicles and 6.2 billion yuan for auto parts.
According to Xu Heyi, head of BAIC, more than 50 percent of the vehicles made in the plant will be exported, contributing to a trade volume of around 6.2 billion yuan to South Africa.
The BAIC plant is situated in the Coega Development Corporation Special Economic Zone.
South Africa represents China’s largest investment destination in Africa with an estimated accumulated Chinese Investment of over $25 Billion and South Africa’s investments in China reaching $660 Million mainly in beer and metals.
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