Speech Points by Councillor Zanoxolo Wayile

SPEECH POINTS BY COUNCILLOR ZANOXOLO WAYILE THE HONOURABLE EXECUTIVE MAYOR OF THE NELSON MANDELA BAY MUNICIPALITY TO: EVENING SESSION WITH FAW DELEGATION 28 FEBRUARY 2012, SHAMWARI AT 19H00

Programme Director

 Distinguished Guests  Members of the Media  Ladies and Gentlemen

Good Evening!

1. As we all know, one of the main objectives of developmental local government is to promote local economic development - a process whereby local initiatives combines skills, resources and ideas in stimulating our local economy and to respond innovatively and competitively to changes in the national and global economy, while promoting job creation, poverty eradication and equality.

2. And it is quite clear that the NMBM cannot do this on its own – it needs the involvement of all stakeholders, including that of foreign investment of which the US$100-million investment by the China FAW Group Corporation, China’s oldest and largest vehicle manufacturer and one of the world’s leading vehicle producers, jointly funded by FAW and the China-Africa Fund, is a good example of what is possible.

3. In pursuing economic growth through business development, the NMBM together with stakeholders have sought to gain competitive advantage through its automotive industry. As we know, globalization forces cities like ours to focus on turning market forces and world market trends and then to position ourselves to benefit in this way.

1 4. Moreover, we are fully cognizant of the importance of establishing partnerships and strategic alliances to exploit the emerging opportunities to address the challenges of poverty, unemployment and inequality, which necessitates a strong and distinctive focus on business development strategies and investment.

5. Countries from the South, like China, are assuming leading roles in decisions on global issues ranging from economic recovery to food security, climate change and HIV/AIDS. And by complementing the new economic frontier of the developing world we are witnessing the rapid pace of South-South trade and investment and the resilience, particular of the large emerging economies to the recent financial shocks marks a new chapter in international relations. And as a result of the ongoing financial and economic crisis, Southern countries can no longer rely on Northern economies as primary trading and development partners.

6. Ladies and Gentlemen:

7. The Nelson Mandela Bay is world-renowned for its automotive manufacturing industry and home to many diverse industrial sectors, including food and beverage, textiles, metals, plastics, wool and mohair, hides and skins, furniture, and paper and cardboard

8. The FAW investment we believe is a recognition of that resilience of emerging economies like ours and an acknowledgement that new coalitions and mechanisms can help address longstanding development challenges, especially in Africa.

9. .With FAW now poised to make further inroads in the South African automotive market, it joins the list of automobile manufacturers like Volkswagen, General Motors, Ford and Mercedes Benz, who have all been around for many-many years in South Africa.

2 10. Nevertheless, FAW boasts the best cutting-edge technologies, production methods and management systems, outstanding credentials and of note is that FAW is also China’s leading exporter of vehicles and since entering the international market in 1984, it has exported more than 100 000 vehicles to more than 140 countries including South Africa. It has joint venture operations with many of the world’s leading vehicle manufacturers including Volkswagen, Toyota and Mazda. In 2010 over a million automobiles were sold through these joint ventures operations.

11. The role of the Coega Development Corporation in this regard has been indispensable because the decision by FAW was prompted by Coega’s location, the proximity to the port of Ngqura, logistical solutions on offer, and the availability of skills in the Nelson Mandela Bay Metropolitan area and support mechanisms offered by the Coega Development Corporation.

12. This is indeed a major accomplishment for the Eastern Cape and in particular the Nelson Mandela Bay. Without doubt this substantial investment by FAW has massive potential to create hundreds of new permanent jobs, contributing to the strengthening of the local economy. The truck assembly facility is expected to create 500 to 800 jobs, and with the prospect of creating many more when FAW starts producing an additional 30 000 passenger vehicles annually.

13. The decision by FAW to build the plant at the Coega IDZ is hugely significant because it is the biggest manufacturing investment by a Chinese entity in South Africa to date. The plant, built on 400 000 square meters is expected to produce 5000 trucks annually, as well as light commercial vehicles and passenger cars.

14. FAW is indeed a company for the times and just what the South African market demands in terms of affordability, competitive pricing without compromising quality in any way because of its policy of simplifying the mechanics of its vehicles through simple and reliable mechanical systems.

3 15. In conclusion, in the NMBM, we remain conscious of the magnitude of the demand for infrastructure development and that we have just begun in our journey towards concrete accelerated development impact. And for this reason we will continue to seek new innovative channels and partnerships for delivery.

We thank you.