New interest from investor brings hope, but challenges remain

A warm shaft of sunlight reached into the darkness when it emerged last week that Nelson Mandela Bay was the frontrunner to land a R2bn investment. Considering that the metro has been in the news for all the wrong reasons, it is reassuring to learn that China’s Sailun Group has identified the Coega Special Economic Zone (SEZ) as a preferred location for a new tyre manufacturing and recycling plant. Though the proposed move is a step in the right direction, we can only hope that the metro sorts out its infrastructural challenges so it can attract even more investment and preserve the industries that already call it home.

Water and power outages need to be addressed with urgency and there must be zero tolerance with regard to vandalism of critical public infrastructure. Mayor Babalwa Lobishe said last week that the city was determined to create an enabling environment where investors could establish, grow and contribute meaningfully to the Bay’s economy. This is important, considering that manufacturing is the backbone of the city, and the metro needs to pull out the stops to ensure those who invest here don’t regret it.

If all goes according to plan, it is hoped that the proposed investment will establish a regional manufacturing hub capable of producing up to one-million passenger vehicle tyres a year and create about 800 permanent jobs. Lobishe said theSailun Groupwas undertaking feasibility studies to build a regional tyre manufacturing hub that would serve the Southern African Customs Union and the broader Sub-Saharan African market. Due to delays affecting its original proposed location, the company was now assessing the Coega SEZ as a preferred investment destination because of its strategic location, world-class logistics infrastructure, availability of industrial land, renewable energy opportunities and direct access to the Port of Ngqura.

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With unemployment in Nelson Mandela Bay having risen to 29.8% in the first quarter of 2026, the city has been in dire need of good news. The expression of interest from theSailun Grouphas driven home the point that there are embers of hope. However, long-term success can only be achieved if the powers that be implement their goals to create an enabling environment.

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