DDM Visit Growing Explores Chinese Investment in South Africa
On May 23, 2025, Minister Maropene Ramokgopa, the District Development Model (DDM) Champion for Nelson Mandela Bay Metropolitan, led a delegation from the Department of Planning, Monitoring and Evaluation (DPME) and the Nelson Mandela Bay Metropolitan to visit BAIC South Africa’s factory in Gqeberha.
The visit, aimed at deepening collaboration to accelerate regional development, underscores the strategic role of international partnerships in South Africa’s economic transformation.
BAIC SA, a joint venture between China’s BAIC Group and South Africa’s Industrial Development Corporation (IDC), represents a pivotal case of how Chinese investment can catalyze the success of the DDM.
The delegation’s tour of the BAIC SA factory, located in the Coega Special Economic Zone, showcased the potential for industrial collaboration.
A symbolic exchange of gifts, set against the backdrop of South African and Chinese flags, highlighted the strengthening ties between the two nations.
This visit follows Nelson Mandela Bay’s 2024 partnership with Zhuhai City, which focuses on economic growth, job creation, and cultural exchange, further emphasizing the region’s commitment to international cooperation.
South Africa’s DDM, launched to address severe service-delivery challenges, is a framework designed to enhance coordination across all spheres of government—national, provincial, and local.
As of 2025, 35 of the DDM’s “One Plans” have been finalized, with 14 in progress and three pending, according to the State of the Nation Address. These plans aim to streamline planning, budgeting, and project implementation in municipalities, tackling issues like infrastructure backlogs and unemployment.
Political Champions like Minister Ramokgopa provide oversight, ensuring collaboration and strategic guidance for the DDM’s success. Nelson Mandela Bay, a key economic hub, is a focal point for these efforts, with initiatives like the BAIC partnership aligning with the DDM’s goals of fostering sustainable development.
Chinese companies like BAIC are increasingly vital to this transformation. Established in 2016, BAIC SA’s Gqeberha factory—China’s largest investment outside Europe—aimed to produce 40,000 to 50,000 vehicles annually, creating around 3,000 jobs by 2022.
Despite these challenges, BAIC’s recent commitment to expand its plant, as confirmed by Chinese Ambassador Wu Peng in April 2025, signals renewed ambition. This expansion aligns with the DDM’s objectives by promising job creation and industrial growth, critical for a region grappling with economic stagnation.
Moreover, Chinese firms bring advanced technologies and managerial expertise, as noted in a 2023 study in the Journal of International Development. Companies like BAIC can stimulate local industries through knowledge transfer and competition, though challenges remain in ensuring African firms can absorb these benefits due to capital and capacity gaps.
By leveraging the DDM’s coordinated approach, South Africa can better integrate such investments, ensuring they translate into tangible economic gains. The BAIC SA project, if successful, could serve as a blueprint for how Chinese partnerships can drive the DDM’s vision of inclusive, sustainable development across South Africa’s municipalities.
