PRETORIA – President Cyril Ramaphosa has hailed Ford South Africa for partnering in the R3.6 billion investment in Tshwane and said yesterday that the launch was a sign of growing investor confidence in the country, just a day before the opening of the Second South Africa Investment Conference.
The Tshwane Automotive Special Economic Zone (SEZ) is expected to create 6 700 jobs, with at least 18 car manufacturing companies operating on the premises.
Ford Motor Company of Southern Africa (FMCSA) embarked on a public-private partnership with the government to facilitate the creation of the Automotive SEZ adjacent to Ford’s Silverton Vehicle Assembly Plant in Pretoria. South Africa desperately needs new investments to ignite its dwindling economy after the growth outlook was slashed from 1.5 percent to 0.5 percent last week.
Moody’s has revised the credit rating outlook from stable to negative, due to the risk that the government will not succeed in arresting the deterioration of its finances, although it maintained the country’s credit rating at investment grade.
In light of these economic headwinds, Ramaphosa said he was encouraged by the decision of the FMCSA to work with the government to establish the first automotive incubation centre.