Eastern Cape Development Corporation (ECDC) chief executive Sitembele Mase says last year’s massive investments in the automotive sector bode well for Eastern Cape’s economic growth beyond 2010.

Mase cited the December 2010 announcement by Daimler AG that it would be invest R2-billion in the East London-based Mercedes-Benz South African (MBSA) plant in preparation for the production of the next generation Mercedes-Benz C-Class due to enter global markets in 2014 and the Joule electric car production in the province. The ripple effects the investments will have on related sectors will create business and jobs, says Mase.

MBSA investment boost for auto sector

“There is a large investment towards the refurbishment of the East London MBSA plant from the mother company and this will boost our automotive sector. There is also the prospect of the Joule, which is South Africa’s first electric car to be produced by Optimal Energy in this province.

“The automotive sector has large potential to create enterprise and employment opportunities through the component and logistics sectors to name a few.”

General Motors South Africa (GMSA) which is the home of Isuzu, Mazda, Opel and Chevrolet brands also announced a R1 billion investment in its Struandale, Port Elizabeth plant.

GM also announces R1 billion investment

The investment will enable the company to build the new generation Chevrolet Spark; an entry level model currently produced in South Korea. Other models to be catered for in the plant expansion are Chevrolet Corsa Utility and Isuzu KB vehicles for local and international markets.

Indications are that the Eastern Cape economy is being driven in the right direction, adds Mase. He adds that retail and financial services sectors are also expected to continue to craft the recovery of the provincial economy in 2011.

Mase’s 2011 prospects are in line with Statistics South Africa (Stats SA) figures which reveal that seasonally adjusted wholesale, retail, motor trade and accommodation collectively grew by 3,3 percent in the third quarter of 2010 in South Africa as a whole.

Further, the province’s industrial development zones (IDZ’s) strategically placed in the two major coastal cities of East London and Coega near Port Elizabeth are both growing investments.

The East London IDZ alone boasts 22 operational investors in sectors as diverse as automotive, renewable energy, minerals, with prospects for a science park in the pipeline.

Coega wind farm investment

Belgium company Electrawinds invested R1.2billion in the Coega Wind Farm Project to build 25 turbines. Each turbine has a capacity of 1.8MW which translates into an annual yield 5,700,000kWh, enough energy to power about 1700 households.

“The green industry is the future. Success in business and economic progress can no longer be measured by profit and statistics, but has to take a forward looking approach to environmental sustainability,” he says.

Green sector potential for the Eastern Cape

ECDC sees potential in the green and renewable energy sector and agro-processing in the Eastern Cape. Some of ECDC’s highlights in the current financial year have been its investment to the tune of R20 million in Matla Solar and millions more in the Joule electric car, Mase says. The corporation holds a 15 percent share in Matla Solar.

According to Business Link, more jobs and wealth are created through agro-processing which is promoted at both provincial industrial development zones.  According to Stats SA, country wide seasonally adjusted growth in the Agriculture, forestry and fishing sectors was 16.3 percent for the third quarter of 2010.