GM reaps rewards

Improved trade ties benefit car manufacturer

CAR manufacturer General Motors (GM), is one of the manufacturers, retail groups and banks that have spotted opportunities in African markets as the continent’s economic muscle strengthens.

GM communication manager for Sub-Saharan Africa Denise van Huyssteen said the company had a 22% sales volume growth last year, compared to 2010.

The company credits political and economic stability for the good performance in Sub-Saharan markets. African countries’ economies were also boosted by infrastructure investment.

“The infrastructure investment provides opportunities for the automotive business,” said Van Huyssteen.

She added that GM saw good growth prospects in Angola, Nigeria, Mozambique, Zimbabwe, Kenya and Ghana, some of the 46 African markets in which it has presence.

The company with American roots recently invested R1billion in its Port Elizabeth plant where its Chevrolet Utility and Spark models are produced. It also invested $3-million (R24.7-million) in its Kenyan plant, where Isuzu bakkies and trucks are assembled.

Leading a delegation of 60 businesspeople to Kinshasa, South African Deputy Minister of Trade and Industry Elizabeth Thabethe said there has been a steady growth in trade between South Africa and Congo in the past year.

“The two-way trade between South Africa and the DRC stood at R7.8-billion in 2011 compared to R6.2-billion in 2010 and R4.8-billion in 2009. This demonstrates a steady growth in trade between the two countries, although, the trade balance is still skewed in favour of South Africa,” said Thabethe.

“The challenge is to reduce this imbalance, without necessarily reducing South Africa’s exports to the DRC, but by increasing DRC’s exports to South Africa. However, it should be noted that imports from the DRC increased by more than 5% from 2010 to 2011, from R103 768-million to R108 242-million which is a welcomed improvement.”

With trade lagging behind in Congo, Thabethe pledged support to improve infrastructure of Congo and other African countries in need, in a bid to boost trade.

“South Africa is ready to share the skills on infrastructure development and on other relevant expertise in order to assist in addressing the infrastructure backlog experienced by most countries in Africa.

“South Africa is also ready to share knowledge, experience and to provide capacity on the development of the industrial policy to address the issue of diversification and beneficiation of mineral resources,” said Thabethe.

African Consul-General in Lubumbashi Mahlatse Mminele cited abundant investment opportunities in Congo. These range from agriculture and mining to tourism, automotive, health, education, infrastructure development and ICT, he said. — siyam@dispatch.co.za