R16-billion boost for car factories in major South African city

South Africa’s capital secured commitments worth R86 billion to help upgrade the city, lift economic growth and create jobs.

The pledges for Pretoria include R16 billion for projects in a range of industries including property and the automotive sector, Mayor Nasiphi Moya told an investment summit last Wednesday.

Another R70 billion in funding was promised for infrastructure, aviation and renewable energy, of which R6.8 billion is already locked up in active projects.

The pledges come from a range of local companies active in those sectors.

“We need to be honest about our finances; Our city has really been stretched and our capital budget has not kept pace with the scale of development,” Moya said.

At the current pace of investment, it would take 36 years to fund the infrastructure that the city needs in the next decade, she said.

“That is a gap we cannot close through public funding alone.”

The City of Tshwane in Gauteng is South Africa’s second-largest economy, behind the commercial hub of Johannesburg and hosts manufacturing plants for Ford Motor and BMW.

The event follows a similar summit for Gauteng in April that attracted R312 billion in pledges, with 170 bankable projects. 

Eleven out of 60 pledges have been turned into actual projects, representing R53 billion rand, said Lebogang Maile, a member of the executive council for finance and economic development in Gauteng.