Decades-old investments have positioned Nelson Mandela Bay to unlock significant benefits from its two ports, extensive logistics network and robust automotive sector, providing it with a substantial competitive advantage.
Naamsa president Billy Tom is optimistic that Transnet’s revival through private partnerships, alongside improvements in the logistics network and port efficiency, can position the city as a major beneficiary of the Africa Free Trade Agreement (AFT).
He was speaking on Wednesday at a round-table discussion on unlocking the Bay of opportunity hosted by the Nelson Mandela Bay Business Chamber at the Boardwalk Convention Centre.
Tom is also the chief executive of Isuzu Motors SA.
“If you look at the makeup of the metro, we invested ahead of the curve,” he said.
“We built a second harbour 20 years ago in anticipation of growth and now we need to start playing to our strengths.
“I am encouraged by what I see at Transnet and if we can get things right we will be able to sort out the harbour efficiency.
“The metro is in a great position [for investment], if you look at the auto sector where we have just had a new investor [Stellantis], they are able to tap into an existing supplier network.”
With sluggish growth expected in SA, Tom said the sector should look to the continent which could be the next growth market for SA-made cars.
The IMF projects 0.9% growth for SA in 2024 while its April World Economic Outlook (WEO) estimates global growth to be 3.2% in 2024.
“We are only 1% of the global auto sector,” he said.
“The African Free Trade Agreement is a huge opportunity for us [as a sector].
“If you look at intra trade in Asia, it is in the 60%, the EU is about 80% but if you look at Africa, it is 15%.
“If you can increase that number by 3% every year for five years you would have doubled it.”
Rand Merchant Bank chief economist Isaah Mahlanga and chamber chief executive Denise van Huyssteen joined Tom.
Van Huyssteen said positioning the metro as the bay of opportunity aimed to harness unique advantages from the two-port city to a strong manufacturing base built from its automotive hub, with highly skilled people and an attractive lifestyle proposition.
“The trade and investment desk is a strategic driver in bringing this vision to life, working as a united business community along with our partners and key role players in the trade and investment space to market the Bay as an investment destination of choice and secure catalytic projects that will drive growth.
“The launch of the desk is a major step forward in resurging the Bay and setting up the local economy for growth and diversification amid huge global advances in technology, new energy and the need for climate resilience,” Van Huyssteen said.
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