These days I spend the majority of my time inGqeberha, the beautiful Eastern Cape coastal city that used to go by the colonial name of Port Elizabeth. Although still one of the best urban areas to live in in SA, the city is feeling the direct and devastating effects of de-industrialisation. Large factories that used to employ hundreds and thousands of workers have shut down over the years – causing joblessness above the national average.
Business, organised labour and the state have tried to keep companies such asGoodyear Tyres, but without success. Some of the factors leading to business closures are out of their hands – such as changing global consuming trends in the automative sector. The increasing influx of cheaper Chinese vehicles into the SA market is causing anxiety about the continued profitability of established brands who assemble their cars in this country.
Reports that the department of trade, industry and competition (DTIC) is trying to entice Chinese manufacturers to move some of their operations to SA is easing fears somewhat. The situation, however, is complicated by the fact that most vehicles assembled here are for export to European, US and other markets. Given the current geopolitical climate, where the US can change its tariff regime without much warning, convincing the Chinese to assemble cars here may not be enough if SA’s competitive advantage is destroyed through high tariffs.
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In the midst of all this uncertainty, cities like Gqebehra have to wrestle with the realities of municipal councils failing to deliver services to both residents and businesses. Some residents say the era of coalition governments has made things worse and that they do not really care who wins the metro at the end of this year so long as the outcome leads to a more stable government. Any conversation with Gqeberha residents, be they from the townships or suburbs, eventually leads to complaints about the Nelson Mandela Bay metro’s failure to guarantee sustained running water and electricity.
Just like in Johannesburg, some will tell you they have gone for weeks without water. As a result, community protests are almost a weekly occurrence. Again, just like Johannesburg, the Nelson Mandela Bay metro is under an ANC-led coalition government.
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