South Africa Set to Launch New Automotive Manufacturing Site in Gqeberha

Minister Patel highlighted that this investment will bolster South Africa’s position as Africa's leading auto producer, aiding in the goal of producing 1.4 million vehicles by 2035.

South Africa is poised to enhance its automotive industry with the establishment of a new manufacturing site at the Coega Special Economic Zone (SEZ) in Gqeberha, Nelson Mandela Bay, Eastern Cape. The collaboration between Stellantis, the world’s third-largest automotive manufacturer by volume, and the Industrial Development Corporation (IDC), South Africa’s largest development funder, marks a significant milestone in the country's industrial landscape.

The joint venture, estimated at R3 billion, promises to generate substantial employment opportunities in the Eastern Cape. The Coega Development Corporation (CDC), responsible for providing the land, has already commenced site preparation.

"I welcome the progress made with concluding all modalities with Stellantis that will enable construction to commence this year and start production of a new auto model by the end of 2025," stated Ebrahim Patel, Minister of Trade, Industry, and Competition.

Minister Patel highlighted that this investment will bolster South Africa’s position as Africa's leading auto producer, aiding in the goal of producing 1.4 million vehicles by 2035. The domestic market size and the auto industry masterplan, which supports local production, were key attractions for Stellantis.

Stellantis Middle East Africa (MEA) COO Samir Cherfan emphasized the strategic importance of the new plant in achieving their Dare Forward 2030 strategy, aiming for a million units produced in the MEA region by 2030 and attaining a 22% market share.

The project signifies strong confidence in South Africa as an investment destination and a gateway to Africa. "We are very proud of this plant, which reflects a significant statement of faith in this country and the capacity of South Africans to manage such a project," Cherfan remarked.

CDC Acting CEO Themba Khoza stated, "Coega is focused on delivering the finest plant for Stellantis, reinforcing the Coega SEZ as an automotive hub in the country."

IDC interim CEO David Jarvis noted the project's potential to significantly uplift the economic prospects of the Eastern Cape. The IDC is committed to partnering with Stellantis to drive investment and develop the regional automobile value chain.

The new factory is expected to incorporate technological advancements and environmentally conscious practices, further enhancing South Africa's reputation in the global automotive sector.