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Political stability vital for success of major new investments in Bay

In some much-needed good news for the Eastern Cape, global automaker Stellantis has chosen Nelson Mandela Bay as its preferred city in SA to develop a new manufacturing facility.

2 min read
Key figures in the announcement of a new automotive plant at Coega are, seated from left,  trade, industry and competition minister Ebrahim Patel and Stellantis Middle East and Africa chief operating officer Samir Cherfan. Standing, from left, are Coega chief executive  Khwezi Tiya, trade and industry acting director-general Malebo Mabitje-Thompson, IDC divisional executive for manufacturing Imran Sayed and Stellantis SA managing director Leslie Ramsoomar
NEW ROADS: Key figures in the announcement of a new automotive plant at Coega are, seated from left,  trade, industry and competition minister Ebrahim Patel and Stellantis Middle East and Africa chief operating officer Samir Cherfan. Standing, from left, are Coega chief executive  Khwezi Tiya, trade and industry acting director-general Malebo Mabitje-Thompson, IDC divisional executive for manufacturing Imran Sayed and Stellantis SA managing director Leslie Ramsoomar Picture: Supplied

In some much-needed good news for the Eastern Cape, global automaker Stellantis has chosen Nelson Mandela Bay as its preferred city in SA to develop a new manufacturing facility.

The R3bn investment will be a massive boost for the local economy, with about 1,000 new jobs expected to be created at the facility and a further 2,097 throughout the province’s automotive value chain.

Completion of the plant in Coega’s special economic zone is scheduled towards the end of 2025, and a range of 1-tonne pickups, to compete in SA’s popular bakkie market, are set to roll off the assembly line by 2026.

Stellantis, headquartered in the Netherlands, is the parent company of more than a dozen popular car brands including Alfa Romeo, Chrysler, Citroën, Dodge, Ram, Fiat, Jeep, Maserati, Opel and Peugeot.

Automotive jobs revved up in Nelson Mandela Bay

And in some other positive news on the investment front, vehicle component manufacturer Benteler Automotive SA officially opened a R500m extension to its Kariega-based plant on Tuesday.

The expansion adds an additional 50 jobs to its staff complement of 700.

It is no secret that the Bay desperately needs jobs, particularly with an unemployment rate of about 33%.

But to keep investments in the city, and also attract more, the environment must be conducive to growth.

It means that there needs to be a stable supply of electricity and water as well as roads that are well maintained, a functional rail and port system and a safer environment in which to operate.

This is where the local and provincial government need to come in to ensure that an enabling environment is created for the businesses to operate and thrive, and to achieve this, political stability is key.

The political principals in the metro must ensure that municipal services are not only maintained, but improved. 

A stable political environment is the lifeblood of a thriving local economy.

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