EC signs R300m deal to create 1 000 jobs
China to build a tile manufacturing plant in ELIDZ
ATHOUSAND new jobs are expected to be created after the Eastern Cape provincial government secured a R300-million investment from the Chinese province of Guangdong to build a tile plant this year or next year.
The deal was signed during the week-long inter-governmental visit by premier Phumulo Masualle’s delegation to two Chinese provinces.
Masualle’s office announced this yesterday after concluding the visit to China on Saturday.
The multimillion-rand investment will be channelled towards building a tile manufacturing plant in the East London Industrial Development Zone (EL IDZ).
“The manufacturer, Shenzen Hengyue Industrial Development in Guangdong province, signed an investment deal which will result in the creation of 500 jobs in the initial stages, but will result in 1 000 jobs when operations are in full swing,” said Eastern Cape government spokesman Sonwabo Mbananga.
He said Guangdong province was the biggest contributor to the Chinese GDP.
The Eastern Cape is hoping to grow its industrial capacity through this partnership which would result in an important transfer of skills.
Mbananga said the provincial government delegation chose the EL IDZ because it has existing infrastructure which means the business could get going as soon as possible.
Although there was no exact time set for when work would start, Mbananga said the intention was to have the factory off the ground in the 2018-19 financial year.
Masualle’s government also believes the factory would grow to become one of the biggest suppliers within the country and the Southern African Development Community (SADC) region, said Mbananga.
“That should result in the creation of more permanent jobs in the long run and improved growth to the provincial economy,” he said.
The premier was accompanied by finance MEC Sakhumzi Somyo and rural development and agrarian reform MEC Mlibo Qoboshiyane, and Buffalo City Metro (BCM) executive mayor Xola Pakati.
BCM already has its own existing trade agreements with the City of Chongqing after a delegation led by Pakati visited China last year.
Pakati said BCM used the latest trip to revive the talks started last year, emphasising that the city would still continue with its own partnerships outside those pursued by the provincial government.
“We want the Chinese to build factories here and produce here instead of us buying finished products that were produced in China because that reduces us to the consumption level which does not contribute much to growing our economy,” he said.
“If they come and produce here then we have guarantees such as job creation for locals and a direct boost to the local economy.”
Mbananga said Masualle’s delegation also agreed in principle with their Chinese counterparts to team up in future partnerships to emulate the economic model of the Guangdong province which has consistently achieved double digit GDP growth.
“The two provinces agreed to sign, in the future, sectoral agreements which will provide for trade in fisheries, dairy products, macadamia, maritime economy, renewable energy, and capacity building and exchange programmes between universities and TVET colleges,” he said.
“To reduce barriers to commercial exchanges a trading facility driven by the two governments will be established to promote access to each other’s markets without unnecessary obstacles.”
During the visit to China, the Eastern Cape leaders also visited Zhejiang province which signed a cooperation agreement with the Eastern Cape in 2000.
However, that cooperation only came into action in 2014 when the Eastern Cape Development Corporation started promoting the province’s products in strategic Chinese markets resulting in 10 000 bottles of wines being distributed to 400 stores across China.
Plans are afoot to further strengthen other partnerships between the province and China.
“Eastern Cape and Zhejiang will sign the updated memorandum of understanding and further enhance existing relations between Buffalo City Metro and its partner the city of Jinhua as well as the Nelson Mandela Bay Metro and the city of Ningbo,” said Mabananga.
“Consultations will also take place to advance cooperation between the Ningbo Polytechnic College, which was founded centuries ago, and Eastern Cape TVET colleges, to undertake exchange programs on skills development for local government, aquaculture and industry to benefit mainly youth and women.” —