The East London Industrial Development Zone has received a major boost with two companies making a combined investment of R502 million. The 100% black-owned companies Meek Mines and Nulatex Condom, invested R423 million and R79 million respectively.
Meek Mines will be the first firm to be cutting and polishing diamonds at the East London Industrial Development Zone while Nulatex is the first pharmaceutical company there.
The arrival of these two companies marks a new chapter in the operations of development zone, which is largely dominated by automotive companies. It comes at a time when the province is losing skilled workers who seek greener pastures in other provinces. The investment is set to create 450 jobs.
The Development Zone’s CEO, Siphiwo Kondlo says it’s a major step in the localisation drive.
“This to us is a major step forward in terms of the diversification agenda in terms of localisation, in terms of beneficiation of natural resources which is at the centre of what we are doing as the East London IDZ. It’s again strengthening the diversification agenda at the back of the strong automotive sector. This is also giving us strength to move into other sectors. We’ve moved into the pharmaceutical sector now. We are moving with more strength in terms of the mineral beneficiation and regional integration.”
Neil Isaacs of Meek Mines says the investments bring hope that the country can make it through these difficult economic times.
“South Africa is one of the greatest producers. Our industry, especially in the diamond industry, black people have not entered into that industry. President Ramaphosa speaks of a new dawn… there’s a new dawn in that space right here in the economic space right here.”
Kingsley Tloubatla of Nulatex Condoms says that the company saw an opportunity and utilised it.
“We saw an opportunity to say we should establish a plant locally to be able to improve access and provide security of supply rather than being the largest consumer of condoms in the world per capita depending on imports.”
Economic Development MEC, Oscar Mabuyane, says the two investments bring huge relief for the province.
“All the opportunities that are coming our way we are trying to lock them in, harness them and give them more diversification in the economy of the province and create more jobs. Also it will assist in the problem of people leaving the province to look for jobs elsewhere and in the process losing a lot in the province equitable share. We’ve lost in the last MTF 13 billion and we are on the line of losing a further five billion. We can’t afford that because of huge infrastructure backlogs.”
Politicians and the business community have called on other investors to invest in the Eastern Cape, particularly those in the automotive and agriculture sectors.
