MERCEDES-Benz recently unveiled a R10-billion investment into its Eastern Cape plant, prompting a bullish President Cyril Ramaphosa to hail the cash injection as proof of its confidence in the South African economy.
“The decision by Mercedes-Benz to further increase its investment in South Africa is a firm statement of confidence in the country and its economy. It is a statement about the skills that are available in South Africa and those that can be developed,” said Ramaphosa, speaking at the launch event.
The investment will see the car manufacturer produce its latest range of the luxury C-Class cars.
“With the investment of 600 Million Euro (R10 billion) we are significantly expanding our plant in East London and equipping it for the future. The decision to have the new generation of the C-Class built in East London re-affirms the plant and Mercedes-Benz South Africa” said Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain, Markus Schäfer.,
“The investment is also a sign of our commitment to South Africa and efforts to revive economic growth as well as the socio-economic development of the East London region.”
Ramaphosa, who visited the Mercedes-Benz Learning Academy prior to the official investment announcement, praised the automotive group’s efforts to improve the skills of the youth through its apprenticeship and learnership programmes.
“We say this is an investment in people because it deepens the commitment that Mercedes-Benz has to developing skills and nurturing talent.
“It understands that for its business to grow, for it to keep pace with rapid changes in production methods, it needs to train new entrants and continuously upgrade the skills of existing employees,” said the President.
He added that the Mercedes-Benz investment should send a clear signal to investors around the world that South Africa is “more than capable of sustaining an advanced manufacturing sector” and doing so profitably and sustainably”.
“We are also determined to lower manufacturing costs by, among other things, significantly improving Eskom’s financial and operational performance, aligning port and other tariffs with our industrial strategy and sustaining investment in rail and road infrastructure.
“Through the development of special economic zones and industrial parks, we are putting in place the necessary infrastructure and support for a manufacturing boom. We are working to ensure it is easier to invest and do business in South Africa,” said Ramaphosa.
“We are making regulatory processes simpler, faster and more efficient, and as part of preparations for our Investment Conference in October, we are strengthening our investment promotion and facilitation capacity.”