SOPA 2026 | Eastern Cape looks to China to rescue motor industry

The Eastern Cape is turning to China in a high-stakes bid to secure the future of its automotive sector, as a R430m commercial vehicle investor prepares to establish operations at theEast London Industrial Development Zone (ELIDZ). The investment announcement comes amid advanced negotiations between the provincial government and another Chinese vehicle manufacturer over a potential R6.5bn injection into Buffalo City Metro’s industrial zone — a move that could reshape the region’s manufacturing landscape. Premier Oscar Mabuyanerevealed during his state of the province address (Sopa) at the Raymond Mhlaba Chamber in Bhisho on Thursday that commitments had been signed between an unnamed Chinese vehicle brand and ELIDZ’s strategic partner, the Automotive Industry Development Centre (AIDC).

The province’s focus on Asia follows persistent job losses at Mercedes-Benz South Africa’s (MBSA) East London plant and contraction within the automotive sector in Nelson Mandela Bay. Mabuyane said the government had little choice but to look east. “We don’t want the ELIDZ to miss this opportunity,” he said.

“There are many other companies coming here. We will even send another delegation to China because we see a lot of Chinese cars on our streets.” His comments follow trade and industry minister Park Tau’s visit to China earlier in February, while SA is navigating ongoing trade tensions with the US. During Tau’s visit, an economic agreement with China — expected to be finalised by the end of March — was signed.

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It is anticipated to grant duty-free access for South African exports to the Chinese market and create more favourable conditions for increased Chinese investment. We don’t want them to come here as a finished product, we want to see it being manufactured here, because that means we will get job opportunities Mabuyane stressed that the province was firm in its manufacturing conditions during negotiations.

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