The chief director of Investment Mobilisation at Invest SA, Lester Bouah, has described the R110 million investment by M-TEC as a symbol of confidence in South Africa’s economy and its commitment to contributing to industrialisation.
M-TEC manufactures a range of copper products, low- and medium-voltage power cables and various optical fibre cables.
Invest SA is an agency of the Department of Trade, Industry and Competition (DTIC).
Speaking at the launch of the M-TEC manufacturing plant in Vereeniging, Gauteng, Bouah said the company’s investment was aligned with the priorities of the South African government’s seventh administration, especially in the areas of localisation, job creation and innovation.
“The annual performance plan of the Department of Trade, Industry and Competition is targeting a R50 billion increase in the procurement of locally manufactured goods and services.
“We urge M-TEC to use this investment to contribute to this import replacement target by increasing its procurement of components and services from local component manufacturers and service providers.
“We encourage more firms to follow M-TEC’s lead in collaborating with the DTIC and embracing localisation,” he said.
Bouah described the M-TEC partnership as a great transformation story for South Africa, as it embraces the participation of previously disadvantaged professionals in an industry that is still widely white and male dominated.
M-TEC was born out of a partnership between Taihan Cable and Solution, a Korean company, and South Africa’s Community Investment Holdings (CIH), which is headed by Professor Anna Mokgokong. CIH owns a 51% stake in the company.
The DTIC’s partnership with the cables industry is under the auspices of the Cables Industry Manufacturers’ Forum, which comprises the department and the Association of Electrical Cables Manufacturers of South Africa. This expansion fulfils the mandate of the forum, which prioritises localisation and import replacement.
Mokgokong told delegates at the launch that the company hoped to make a contribution to addressing unemployment areas neighbouring the plant.
“We aim to keep our manufacturing capability busy 24 hours a day. This will enable us to feed many mouths and will reduce the social spend of government in supporting unemployed individuals.
“We need to get South Africans to work and earn a decent living through honest means. The more procurement opportunities we get, the more jobs we can create, and the more revenue can feed the fiscus,” she said. – SAnews.gov.za
