Hundreds of electric buses, to service the African market, will soon be assembled in the Buffalo City Metro.
This follows a collaboration agreement between the East London Industrial Development Zone (ELIDZ) and Chinese vehicle manufacturer China City Industrial Group’s Electrical Vehicle Technology Company (CCIG).
The deal, expected to attract a R1bn investment and create more than 500 local jobs in its first phase, was signed in China last week, just days after a high-powered Eastern Cape delegation, led by premier Oscar Mabuyane, had visited the Asian country to promote economic ties and woo investors.
In welcoming the investment, BCM mayor Princess Faku, who was part of the delegation that joined Mabuyane on his trip to China, said on Monday that the metro wanted to position itself as a hub of automotive manufacturing in SA.
“This move will help in expanding our automobile sector and will help in retaining existing jobs while also creating new job opportunities that are required by the electric car industry here in BCM,” Faku said.
The mayor also hinted at other possible investments for the city.
“On our trip to China recently, we visited Leapmotor, an electric vehicle and battery manufacturer, which we have since invited to locate an electric vehicle manufacturing plant here.
“There are investment opportunities in our city and we want to position ourselves as a hub for development, and most importantly, to create and retain jobs for our people,” Faku said.
The project comes just a month after the industrial development zone signed a memorandum of understanding (MoU) with the Automotive Industry Development Centre (AIDC) to bolster the local manufacturing sector.
The partnership between the East London Industrial Development Zone (ELIDZ) and Automotive Industry Development Centre (AIDC), an implementing arm of the Eastern Cape provincial government’s economic growth strategy, was also to promote new investments in the Eastern Cape’s auto sector, with this latest deal a result of an MoU signed by the two state organs.
Industrial development zone spokesperson Sibusiso Ralarala said CCIG would work closely with an SA automotive company, SIGA e-Mobility, which for the past 10 years had manufactured commercial vehicles for major global manufacturers.
“The agreement will see SIGA e-Mobility and CCIG combining their technology and expertise to assemble electric buses for the African market at a facility in the ELIDZ,” Ralarala said.
Although no timeline was given for the project, industrial development zone chief executive Thembela Zweni said a facility was already in place.
“There is already a world-class factory identified and prepared ... the ELIDZ is ready,” Zweni said.
The project would be implemented in three phases.
“The first phase will include establishing and commissioning the facility within the ELIDZ, which will later culminate in the production and assembly of buses from this facility.
“This first phase is expected to create 500 direct jobs and will see an investment of just over R1bn into plant and machinery.
“The next two phases, and the quantity of the products, will be determined by the rate of market development and take-up,” Zweni said.
The contribution of this project, Zweni said, would cut across various priorities in the industrial development zone’s environmental, social and governance “aspirations and agenda”.
“On the environmental side, the advancement of new energy vehicles are in line with UN sustainability development goals, which relate to affordable and clean energy and further align to the auto energy’s strategies to reduce greenhouse emissions by 2030.
“On the social side, the automotive sector is one of the key contributors to the manufacturing output of this province, and we believe this project will therefore have a significant effect on the province’s economic output and job creation.
“On the governance side, this project will see a partnership between a local company and a Chinese multinational, leading to a transfer of new technology, new skills and support of local industrialists,” Zweni said.
SIGA e-Mobility’s innovation officer, Pat Nodada, said the partnership with CCIG was a crucial part of the company’s plan to expand its footprint to the Eastern Cape.
“This project is the next step in realising our vision of establishing a multi-OEM platform to produce new energy commercial vehicles for Africa.”
He said the industrial development zone’s existing automotive ecosystem, the city’s port, and the extensive auto supplier base were key factors in choosing East London.
Economic development MEC Nonkqubela Pieters said the partnership was a significant milestone for the province.
“It cements a unique collaborative effort that will see our province grow and diversify the footprint of the automotive sector.
“This collaborative effort is a first for our province, as it is not only attracting foreign direct investment, but also ensures meaningful participation of a South African automotive player.
“Additionally, it facilitates the transfer of technology and skills and increases socioeconomic benefits for the citizens of our province,” Pieters said.
The partnership, according to AIDC Eastern Cape CEO Thabo Shenxane, came about after his entity had received a request from the Chinese company to assist in finding a local partner “that would utilise CCIG technology for manufacturing electric buses for the African market”.
CCIG chief executive Simone Tassi said his entity was looking forward to partnering with the South African company in this venture.
“Within 20 minutes of our first meeting with SIGA e-Mobility, we were confident that their experience in the automotive sector, their technical know-how and their existing capacity would make them the best partner for establishing our footprint in the African commercial vehicle market,” Tassi said.
Black Business Forum president Luthando Bara said the partnership solidified the province’s status as a key hub for automobile manufacturing.
“We are pleased that this collaboration will exploit the existing automotive ecosystem developed over years by the city and province.”
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