Independent Online

Tuesday, December 5, 2023

View 0 recent articles pushed to you.Like us on FacebookFollow us on TwitterView weather by locationView market indicators

Eastern Cape receives R127 billion in new investment pledges

Mercedes-Benz C-Class body on the production line at East London. Formex Industries plans to invest R114m to expand press facilities, to increase assembly capacity for Mercedes-Benz South Africa’s US variants.

Mercedes-Benz C-Class body on the production line at East London. Formex Industries plans to invest R114m to expand press facilities, to increase assembly capacity for Mercedes-Benz South Africa’s US variants.

Published Oct 3, 2023


The Eastern Cape will benefit from R127 billion in new investment commitments that were announced at the Eastern Cape Investment Conference, projects that could materially improve the regional economy,

Of the investments, R22.1bn represented investments announced for the first time, while R105bn of it was first announced at the South African Investment Conference in April this year.

Eastern Cape Development Corporation (ECDC) CEO Ayanda Wakaba said these investments would inject substantial capital into the provincial economy, leading to a cascade of positive effects that would benefit citizens, businesses and the overall economic landscape.

“The investment commitments are in the energy, manufacturing, information communication technology, property, tourism, film, oil and gas and healthcare sectors,” he said.

He said the investments spanned a significant portion of the Eastern Cape’s districts, providing extensive economic development prospects.

“They represent a pivotal moment in provincial economic trajectory, positioning the province for robust growth and a prosperous future. We extend our gratitude to the visionary investors who have chosen to partner with us on this journey, as well as to our dedicated government agencies and institutions for their role in facilitating these declarations,” Wakaba said.

For the oil and gas sector, a Tamsa Holdings and Central Energy joint venture planned to invest R13.6bn in an on-shore Liquified Natural Gas (LNG) storage and re-gasification terminal in Nelson Mandela Bay.

A subsidiary of the world’s largest beer producer, AB InBev, South African Breweries, was investing R510 million to extend its brewery in Nelson Mandela Bay.

In the tourism sector, Mkambati Matters, located in Mkambati Game Reserve, planned to invest R250m into an eco-tourism lodge development in the OR Tambo District Municipality.

Independent power producer Parson Power Park was investing R2.7bn in the construction of a solar power plant in Nelson Mandela Bay.

Ivili Loboya Wool Processing planned to invest R45m to expand its wool processing factory, increase processing capacity and for infrastructure in the Amathole District Municipality.

In the Information Communication Technology (ICT) sector, global technology company JendaMark Automation planned to invest R150m in digital Fourth Industrialisation Revolution (4IR) technologies in Nelson Mandela Bay.

Property development firm AJ Properties was investing R100m on a retail shopping centre in the OR Tambo District Municipality.

In Nelson Mandela Bay, leader in the development, fabrication and supply of automotive metal formed components, Formex Industries, would invest R114m to expand its press facilities to increase assembly capacity for Mercedes-Benz South Africa US variants.

Global automaker Stellantis was investing R3bn to develop a new vehicle manufacturing facility in Nelson Mandela Bay.

Fuel stations development specialist and convenience shopping centres, Imperium Developments, planned to invest R109m to construct shopping and convenience centres in Peddie, Sterkspruit, Bhisho and in the Berea Shopping Centre, located in the Buffalo City Metropolitan Municipality.

Thezi-Langa Energy would invest R900m into a 50 megawatt solar PV project at the East London Industrial Development Zone’s Ntabozuko Renewable Energy Park in the Buffalo City Metropolitan Municipality.

Hive Hydrogen was investing R105bn in the renewable energy sector for the construction of a green hydrogen/green ammonia production facility at the Coega Special Economic Zone.

Bushveld Electrolyte Company would invest R330m into a vanadium electrolyte production facility in the East London IDZ.

Film, television and video productions company Tshedza Projects was investing R80m in the film sector for Season 2 of popular telenovela “Gqeberha: The Empire in Nelson Mandela Bay.”

Nexus Yachts planned to spend R181m on the expansion of its facility to build new balance catamarans in the Sarah Baartman District Municipality.

The Universal Service and Access Agency of South Africa was investing R159m in broadband projects across various regions in the Eastern Cape.

Medilinks was investing R100m for diagnostic and primary healthcare centres.

Finally, Vodacom was investing R500m to expand connectivity in rural areas and townships.

According to the Eastern Cape Socio Economic Consultative Council (ECSECC) quarterly statistical review for the last quarter of last year, South Africa’s economy grew by 2% last year, while the real GDP in the Eastern Cape reached 1.6%.