The Presidency said the development was a demonstration of confidence in South Africa as an investment destination. The investment was among several pledges presented at the inaugural South Africa Investment Conference, held in Johannesburg in October last year. The conference generated R290 billion in new investments, with the automotive sector accounting for R40 billion over the next five years.
“Nissan South Africa’s expansion is a culmination of collaborative work by the automotive industry, the Department of Trade and Industry and the Gauteng Provincial Government’s Gauteng Growth and Development Agency and the Automotive Industry Development Centre,” The Presidency said.
Projects to the value of R187 billion from the pledges committed at the South Africa Investment Conference are currently undergoing implementation. Projects worth another R26 billion are in the pre-implementation phase.
“These projects are reinforcing South Africa’s ambition to attract R1,4 trillion in domestic and international investment over a period of five years,” The Presidency said.
The automotive industry contributes 6,9% to gross domestic product, which accounts for 30,1% of manufacturing output and 13,9% of total exports.
The sector employs more than 110 000 people in the vehicle and component manufacturing and averages annual investment of R12,2 billion.
The Presidency said government remained committed to further support investment and development of the automotive industry in line with the National Industrial Policy Action Framework and the Industrial Policy Action Plan.
President Ramaphosa urged role players in government, civil society and business to collaborate in re-igniting inclusive growth and pursuing greater levels of investment that will create employment and reduce inequality and poverty.
NISSAN ANNOUNCES EXPANSION OF INVESTMENT– Source: SAnews.gov.za