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Honourable Premier, Mr Phumulo Masualle,

Minister of Trade and Industry, Dr Rob Davies,

Eastern Cape MEC for Economic Development, Environment Affairs and Tourism, Mr Sakhumzi Somyo,

Nelson Mandela Metropolitan

Municipality Mayor, Cllr Ben

Fihla,

Chairperson of Coega Development Corporation, Dr Paul Jourdan and CEO Mr Pepi Silinga,

FAW Group Vice President: Mr Quin Huanming

CEO of First Automotive Works (FAW) in South Africa, Mr Zhang Yusheng,

Representative of the Embassy of China,

Members of the diplomatic corps,

Ladies and gentlemen,


Good day to you all.


Thank you for inviting us to be part of this important occasion.


We also extend a warm welcome to all our guests from China who have come all the way to celebrate this historic opening of the FAW commercial vehicle assembly plant here in Nelson Mandela Bay, and in the COEGA Industrial Development Zone in particular.



The economy is an apex priority in our country during this term of government. We have decided to place the economy on the centre stage because we believe that sustainable economic growth is possible if we seek meaningful partnerships locally and worldwide.



Growth is also possible if we, as government, actively support our partners in the private sector to create a positive environment for business to thrive. We are therefore looking forward to fruitful partnerships in the next five years.



We have set a growth target of five percent by the year 2019. We view this occasion today as a key contribution towards attaining that goal.

FAW has been in our market for 20 years providing passenger and commercial vehicles. However, your decision to locate the production facility in Coega is a most welcome vote of confidence in Nelson Mandela Bay and in the Eastern Cape Province.



The investment of R600 million into the economy will create much needed jobs and promote an improvement in the lives of many people in this area.

This investment also augurs well for South Africa’s position within the global automotive manufacturing network and proves once again that we have an attractive operating environment to host global multinational companies.



In addition, as a member country of BRICS, we are encouraged by this investment as it demonstrates the practical benefits of this strategic forum.



We will this weekend travel to Brazil to attend the sixth BRICS forum, and will do so pleased with the tangible benefits of that innovative relationship.



We trust that the potential of this new beginning will be shown with this facility realising and even surpassing its target of 5000 trucks in the first phase, as well as other passenger and light vehicles.



I also thank the China-Africa Development Fund for supporting this initiative.



We also congratulate all partners in this important project, such as the management of the Ngqura port as well, which is one of the busiest deep-water ports in Africa.



Ladies and gentlemen



We remain very committed to developing and growing the automotive sector in our country.



Over the last 20 years we have employed the Motor Industry Development Programme, and more recently the Automotive Production Development Programme, as the focal industrial policy instruments to transform our automotive industry.



The aim was to migrate our industry from a small assembly base to a globally competitive one producing vehicles for both domestic and international markets.



Our intention is to create an environment that will enable the domestic industry to significantly grow production volumes.



In this regard, our Vision 2020 strategy for the industry refers to the doubling of local vehicle production and broadening and deepening of component manufacture by the year 2020.



To further advance this goal, we have completed preparatory work towards establishing an Investment Support Programme for the medium and heavy commercial vehicles.



This instrument will assist us to position South Africa as a destination of choice for the assembly of medium and heavy commercial vehicles.



To further support the expansion of business activities and productivity in the country, our biggest focus over the next five years will be on building a sustainable energy mix including coal, solar, wind, nuclear and shale gas.



Energy security will further enhance our country’s global competitiveness.



May I also, indicate, ladies and gentlemen, that FAW has chosen the right continent in which to invest at this point in world economic history.



The African continent is home to some of the fastest growing economies in the world and there remains greater potential for further growth, particularly in the transport of goods as trade volumes increase.



The entire African continent is also embarking on an intensive infrastructure development aimed at also encouraging inter-Africa trade through improved connectivity.



The Regional Economic Communities, namely the Southern African Development Community, COMESA and the East African Community are in negotiations to achieve a Free Trade Area.



The project will bring together 26 countries with a combined population of 600 million and an overall GDP of approximately 2 trillion US dollars.



Such a massive market augurs well for global companies such as FAW.



To further support intra-regional trade within the continent, a Trans African Highway programme has been established to link Africa’s capitals on eight major routes.



Once this highway has been completed, we expect to see a major boost in inter-country trade and provision for landlocked countries to access harbours.



Also envisaged is the creation of much needed direct routes between capitals of the continent and to promote the economic and social integration of Africa.



In return, the increase in trade will contribute towards a growing demand for heavy commercial vehicles thus expanding markets for FAW and other companies in this sector.



Given all these opportunities, and in line with the National Development Plan and the New Growth Path, our Government is investing heavily in local and continental infrastructure development in the medium to long term.



We are therefore living during an era of great promise in the continent economically.

We will continue to provide support to the South African private sector and global companies based in our country, so that they can take advantage of opportunities and help us to promote job creation and a better life for our people.



Ladies and gentlemen,



As we meet to celebrate this occasion, we are also all aware of the worker strike in the metal industry sector.  We do not believe there is cause for alarm regarding worker action at any point.



South Africa has a progressive labour relations framework.



Both worker and employer rights are entrenched in the Constitution and all parties know how to go about resolving any disputes that arise, using the country’s effective and efficient labour relations and dispute resolution mechanisms.

In this regard, Government is providing support through the Ministry of Labour and its structures.



We wish the parties well as they discuss their issues, and trust that they will reach a mutually beneficial agreement without much delay. The metal industries sector needs to go back to full production as soon as possible.


While respecting the constitutional and hard-won worker rights, let me emphasise that government will always act against those who use violence and intimidation to advance their cause.


We have enough instruments in our labour relations machinery to resolve labour disputes. There is no need to resort to violence. We condemn all acts of violence that have been reported thus far.

Ladies and gentlemen,

Let me once again congratulate all partners in this milestone project.


We warmly welcome FAW’s decision to assemble its vehicles locally. We wish you success, growth and prosperity, which will translate to growth and prosperity for workers, their families and the local economy


Ladies and gentlemen,


It is my honour and pleasure to welcome FAW as a full commercial citizen of South Africa and to officially open this new assembly plant.



I thank you.