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The East London Industrial Development Zone (ELIDZ) and the Automotive Industry Development Centre (AIDC) Eastern Cape have started to see the results of their combined efforts towards attracting new automotive investments into the Eastern Cape province.
This follows the signing of a collaboration agreement between these two government entities, a Chinese OEM, China City Industrial Group’s Electric Vehicle Technology Company (CCIG) and SIGA e-Mobility, a South African automotive company that has, in the last ten years, manufactured commercial vehicles for several major global OEMs from its South African base.
The agreement will see SIGA e-mobility and CCIG combining their technology and expertise to assemble electric busses for the African market at a facility in the ELIDZ.
According to AIDC Eastern Cape CEO, Mr Thabo Shenxane, the entity received a request from the Chinese Auto player last year to assist in finding a local partner that would utilise CCIG technology for manufacturing electric busses for the African market.
“We issued a request for South African companies with the requisite experience and manufacturing capability to express their interest. Following a rigorous process, we shortlisted and ultimately recommended SIGA e-mobility to CCIG Electrical Vehicle Technology company,” said Shenxane.
ELIDZ Automotive Supplier Park
CCIG Vice President and CEO of the EV Technology Company, Mr Simone Tassi, commended the AIDC Eastern Cape for their agility, and efficiency in undertaking the assignment, as well as ensuring adequate due diligence in the search for the local partner.
“Within twenty 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,” said Tassi.
Last week, a collaboration agreement was signed between the ELIDZ, AIDC Eastern Cape, CCIG and SIGA e-mobility at the CCIG factory in China. The visit and signing ceremony were part of the Eastern Cape China Investment and Trade Mission, led by Premier Lubabalo Mabuyane, to promote economic ties between China and the province.
Speaking at the signing ceremony, MEC for Economic Development, Environmental Affairs and Tourism (DEDEAT), Nonkqubela Pieters, touted the partnership as a significant milestone for the Eastern Cape 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 socio-economic benefits for the citizens of our province,” she said.
According to SIGA e-mobility Innovation Officer, Pat Nodada, the partnership with CCIG is crucial part of the company’s plan to expand its footprint to the Eastern Cape.
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“Our company built the first electric busses for the City of Cape Town almost 10 years ago and we have worked with all major global OEMs in the last ten years to deliver BRT busses in South Africa. This project is the next step in realising our vision of establishing a multi-OEM platform to produce new energy commercial vehicles for Africa. We are already in discussions with other brands to utilise our facility,” said Nodada.
He mentioned that the ELIDZ’s existing automotive ecosystem, the city’s port and the extensive auto supplier base were key factors in choosing East London as the preferred location for their investment.
ELIDZ CEO, Thembela Zweni, has welcomed this new investment and committed the ELIDZ to working together with all role players to ensure the project’s success.
“There is already a world class factory that has been identified and prepared for this partnership. The ELIDZ is ready to not only help settle the investment but also facilitate access to infrastructure, incentives and other support mechanisms required to operationalise this investment”, said Zweni.
The East London Industrial Development Zone (ELIDZ) is home to over 20 automotive suppliers. In the last 20 years, it has attracted more than R8-billion in private sector investment from various countries including Germany, the USA, Canada and China.
South Africa is in the advanced stages of developing a legislative and incentive framework to encourage the adoption of new energy vehicles. This initiative responds to the growing global focus on reducing energy emissions and achieving global sustainability goals. This move has created an opportunity for the province, and the ELIDZ specifically, to position itself as the manufacturing hub for new energy vehicles in the country.
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