BMW SA GETS US$150M LOAN FROM IFC TO BUILD THE NEW BMW X3

The $150 million loan comes as South Africa “seeks new sources of economic growth after a period of slowdown, driven in part by sluggish mining and manufacturing sectors”, according to  the IFC in a statement.

The auto industry tends to be  South Africa’s largest manufacturing sector.

“The country suffers from unemployment estimated at 27% overall and nearly 50% among youth.”

Nonetheless, local content accounts, on average, for about one-third of each vehicle produced in South Africa.

The IFC estimates that raising that share of local content to 45% could put in $4-billion into the local economy and support 80,000 more jobs over the next three years.

“[The] IFC’s partnership with BMW SA supports the transfer of technology and workforce skills from global auto manufacturers to local suppliers,” says IFC head of manufacturing, agribusiness and services in sub-Saharan Africa, Mary-Jean Moyo.

Investments in manufacturing are an important part of the IFC’s regional strategy, because of the sector’s importance in generating jobs and its ability to make other industries, such as agribusiness, health and infrastructure, more efficient and competitive.

“This partnership between IFC and BMW will help South Africa create highly skilled jobs and wages through deeper participation in the global automotive supply chain,” says  SA Trade and Industry Minister Dr Rob Davies.

 

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