Deputy President Paul Mashatile has assured executives of Isuzu Motors Limited in Japan that South Africa is actively working to resolve its port and infrastructure issues.
This comes in the wake of significant congestion, infrastructure shortfalls and equipment failures at the country’s major ports, which have affected both import and export operations.
“I am pleased to report that we have dealt with energy issues that affected our economy,” Mashatile said on Monday.
He was speaking at the Isuzu Fujisawa Plant, where he is currently on a working visit with a delegation that includes ministers, deputy ministers and senior government officials.
The purpose of the visit is to strengthen cooperation between the two nations in areas of mutual interest.
The multinational corporation that manufactures commercial vehicles, diesel engines, and automotive parts has a significant presence in South Africa.
As a Japanese automobile manufacturer, Isuzu has been in South Africa for a long time and is well-known for its trucks and bakkies.
“As a country, we are honoured that the Isuzu Motors South Africa Struandale Plant in Gqeberha, in our Eastern Cape province, is the first fully owned plant outside Japan whereas in other countries Isuzu produces vehicles through joint ventures and licence agreements,” Mashatile said.
“This shows great confidence in our country and our people for the skills necessary to produce these trucks and bakkies.”
The Struandale Plant produces 28 500 vehicles per annum and has dealerships across 26 countries in Africa.
He said the African Continental Free Trade Area (AfCFTA) had created further opportunities for Isuzu to export and operate in over 54 countries that have signed the agreement.
The AfCFTA creates the largest single free trade area, comprising a market of 1.3 billion people and a gross domestic product (GDP) of $3.4 trillion.
Isuzu also exports to the European Union (EU) under the Southern African Development Community-EU Economic Partnership Agreement.
“South Africa is the place to be, indeed a gateway into the continent and the rest of the world, including Japan under the generalised system of preferences,” Mashatile said.
He described Isuzu as a model investor in South Africa, contributing to employment, skills and supplier and enterprise development.
“I also understand that Isuzu contracted 107 suppliers, with over 700 parts being localised in South Africa and some integrated into Isuzu global supply chains,” he said, adding that Isuzu had achieved Level 1 Broad-Based Black Economic Empowerment (BBBEE) status.
During the working visit, Mashatile and his delegation will engage with the business community in Japan to enhance economic relations.
They will focus on manufacturing and machinery, mining and mineral beneficiation, energy cooperation, the automotive industry, and improving market access for South Africa’s agricultural products.
He is also expected to meet with Dr Akihiko Tanaka, the president of the Japan International Cooperation Agency (Jica) on Monday. Jica is a government agency that is actively involved in development projects in South Africa.
On Tuesday, he will pay a courtesy visit to Prime Minister Ishiba Shigeru and visit the Meiji Jingu Shinto Shrine. – SAnews.gov.za
