Foreign owned companies with investments in South Africa will be keeping a close eye on Wednesday's budget speech by Finance Minister, Pravin Gordhan.
Germany's ambassador to South Africa, Horst Freitag, says he will be looking to see how the budget gives effect to president Zuma's announcement of massive infrastructure spending during his state of the nation address last week.
Ambassador Freitag was in East London on Monday to visit the Mercedes Benz South Africa plant.
"We will be looking at how the first sketches of how the plan that was introduced by president Zuma, infrastructure-led path for economic growth will actually be broken down to. What is the vision in the next year, which one will be first, how it will be done.
Obviously the financial outcome and planning for that is crucial, it is crucial for South Africa and it is crucial for all the companies who invest here," he said.
Speaking about his visit to the Mercedes Benz SA plant, which will be building the new generation C-Class from 2014, Ambassador Freitage said "trade and investment is what builds a nation and Germany is one of the major investment and trade partners of South Africa, with about over 600 companies providing about 90 000 jobs and an additional 200 000 jobs in the supply and service sector."
"The car manufacturing companies from Germany here are an important part of that and they build excellent cars, high quality cars and this is what I came to look at," he added.
He said "these car companies do not only just sell cars and do not simply buy natural resources. What they do essentially is that they manufacture in South Africa, they provide jobs in South Africa and so doing they invest in what is perhaps the most precious good in South Africa is that they invest in people and human development," said Freitag.
"These car companies here, just like other German companies are leaders in education and training programmes, promoting skills on a high technical level and on renewable energy so they do live up to their corporate responsiblity."
Ambassodor Freitag says investments in South Africa by German companies are a vote of confidence in the country.
"Taken by itsself the decision to build the new C-line from 2014 on in is a statement of confidence in the economy over here. What is necessary is to work together with government, Naamsa and the unions and off-course the local provincial communities here in order to see the bumps on the road. Investments like these take time and you need to look at the mid-term and long term development and that has to be discussed amongst all the players," he said.
"So, from that sense there are always some issues that you need to discuss and eventually find a solution for and that is important. But, the overall sentiment certainly is one of confidence and trust. I would say that the relationship between the car companies and government is good. You have a new plan coming up for the automotive sector, the APDP (Automotive Production and Development Plan) where some issues will be regulated," he said.
"What is also important is to enhance and suppor the supply chain, first, second and third tier suppliers for the car companies. That could all be manufacturered locally and there is a huge option for South African companies to get involved."
