Vehicles to be built in SA are: 3 Models, namely X 25 SUV, pickup truck, and Yinxiang S6.

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1 WHO IS BAIC? Beijing Autmbile Internatinal Crpratin (BAIC) is a whlly wned subsidiary cmpany f BAIC Internatinal Develpment C. Ltd. The Chinese state wned cmpany is the hlding cmpany fr several brands inc luding Beijing Autmtive W rks as well as an imprt and exprt crpratin f the BAIC Grup. BAIC Internatinal Develpment C. Ltd was funded in BAIC is a significant glbal player in the autmtive industry It has internatinal ftprint with exprts t m re than 20 cuntries r regins, exprts t Eurpe, Nrth America, Suth America, Australia, Africa, Middle -east, Suth-east Asia, nw in Suth Africa, just t mentin a few. By , BAIC plans t cnstruct plants in Suth Africa, Brazil and Russia fr indus trialized prductin. One f the tp five largest autmtive grups in China with ver 58 -year histry Ranked N. 17 in the glbal Autmtive Ranking (2015FY) Ranked N. 207 in the Frtune 500 (2015FY) By 2015, BAIC grup revenue was 400 billin RMB with sales vlume 4 millin units Visin: Ttal sales vlume f 5 millin units and will rank in the tp 3 Chinese aut grups BAIC Internatinal and Industrial Develpment Crpratin (IDC) are in a Jint Venture Agree ment and have created a new Suth African Entity called: BAIC AUTOMOBILE SOUTH AFRICA. BAIC has 30 plants in 20 cuntries. These include plants fr Spares. WHAT DOES BAIC DO? Its fcal business rientatin is in internatinal trade, bth imprt and exprt with a strng fcus n technlgy with a fcus n sales f autmbiles, mechanical and electrical prducts in the dmestic market. WHAT VEHICLES WILL BE ASSEMBLED IN SOUTH AFRICA? Vehicles t be built in SA are: 3 Mdels, namely X 25 SUV, pickup truck, and Yinxiang S6.

2 HOW MUCH IS BAIC INVESTING IN SOUTH AFRICA? Ttal Investment value: R11 billin BAIC Phase ne wuld be wrth R4,5 billin BAIC Phase tw wuld be wrth R6.5 billin WHERE IS THE LOCATION OF BAIC FACILITY? Zne 1 (Lgistics Zne) f the Cega IDZ in the Nelsn Mandela Bay Metr HOW MUCH LAND WILL BAIC OCCUPY? Land Occupied: hectares First Phase is hectares WHAT IS THE SIZE OF THE BAIC FACILITY? First Phase cvered area: sqm HOW LONG WILL THE FACILITY TAKE TO BUILD? Cnstructin perids: 18 mnths cnstructin perid, expected t start in Octber/Nvember 2016 and reach cmpletin in December 2017/January 2018 EXPECTED START OF OPERATIONS January/ February 2018 WHAT WILL BE THE PLANT S CONFIGURATION? Cmpletely Kncked Dwn (CKD) Assembly Plant will include an assembly plant, bdy shp, painting, wrkshp, assembly f cmpsed parts, car bdy interir decratin, testing, paint repair, and after-sales service PRODUCTION VOLUMES First Phase: Until 2022, planned target prductin capacity is 50,000 vehicles Secnd Phase: Planned target capacity is annual yield f 100,000 vehicles 60% is fr the exprt market, particularly int the African Cntinent (East-West-Nrth); 40% is fr the lcal Suth African market. HOW MANY JOBS WILL BE CREATED? Jbs: 800 initially t 1500 jbs (peratinal) in 2018 Ecnmy-wide impact f BAIC prject in term f emplyment creatin is expected t be arund jbs pprtunities.

3 HOW DID THE BAIC INVESTMENT COME ABOUT? The utcmes f the Frum n China-Africa Cperatin (FOCAC) Summit held in Jhannesburg frm 3 t 5 December Attended by Heads f State and Gvernment, Heads f Delegatin, the Chairpersn f the Afri can Unin (AU) Cmmissin and Ministers f Freign Affairs and Ministers in charge f ecnmic cperatin frm C hina and 50 African cuntries. CDC is empwering grwth and develpment fr cmmunities and businesses in the EC BAIC will prvide training and develpment pprtunities t NMB & EC cmmunities BAIC investment will benefit the unemplyed yuth, wmen, and persns with disabilities The Investment will prmte grwth and develpment f SMMEs (facilities and ther related ser vices in Zne 1) SECONDARY MESSAGING The investment will create pprtunities fr EC tertiary institutins fr Re search and Develpment (Universities: NMB, Rhdes, Frt Hare) This investment will strengthen relatinships between Suth Africa and China and brings t life the FOCAC 2015 Jhannesburg declaratin BAIC and ther Investrs have benefited frm the Custms Cntrl Area status f the Cega IDZ 1& 2 IMPACT ON LOCAL ECONOMY The ecnmy-wide GDP impact in Eastern Cape Prvi nce, due t the BAIC cnstructin prject, is estimated at R945.1 millin. This represents abut 0.41 percent f Eastern Cape s 2014 GDP_R, at cnstant 2010 price. The spending related t the cnstructin f new facility t accmmdate BAIC s vehicle manufacturing plant within the Cega IDZ wuld result in direct and indirect utput f R2.4 bil lin in Eastern Cape, f which the majrity f expenses t benefit the Metr. When adding the induced effect f the wage incme, the impact f the ecnmy -wide effect is estimated at R3.3 billin fr the Eastern Cape Prvince. A large increase in the utput f the cnstructin industry is expected due t the expe nditure n building cnstructin. As a cnsequence f these investments and because f the indirect effects assciated with them, ther industries such as Trade, Chemicals and Chemical prducts, Transprt, Manufacturing and Transprt Equipment, Real Estate, Cmmunity, Scial and Persnal Services, Fd industry, Trade, Accmmdatin, Livestck farming, Insurance, Grain Milk, Bakery and Animal Feed Prducts wuld als see relative large increases in utput (see Figure 1). Figure 1: Eastern Cape Industry Impact Output Multiplier (Rm)

4 Due t the increase in emplyment, the ecnmic-wide impact n labur remu neratin is expected t increase by R425 millin (ecnmy-wide impact) in the Eastern Cape Prvince. The cnstructin f new facility t accmmdate BAIC s new vehicle manufac turing plant within the Cega IDZ wuld impact the mst vulnerable husehlds in the Prvince (see Table as their incme is expected t increase by R122.1 millin (ec nmy-wide impact). Table 1: BAIC Cnstructin Prject Impact n Selected EC Macrecnmic Indicatrs IMPACT ON EMPLOYMENT The BAIC prject wuld have psitive impacts n emplyment, especially arund the yuth wing t the nature f the prpse d prject (see Semi-and Unskilled prprtin in figure 2 belw). In its brad perspective, the prject will generate apprximately frmal direct andindirect jbs pprtunities during the cnstructin phase. When adding the induced effect f the wage incme, the ecnmy-wide number f jbs wuld be arund fr the Eastern Cape Prvince. In the infrmal sectr, abut jbs (ecnmy-wide) are expected t be created by th prject (see Table 2). It is prbable that the change in emplyment will benefit the lwer class incme grups as they are the mst likely t be emplyed in the infrmal sectr, semi -skilled and unskilled jbs in the frmal sectr. In cnclusin, the ecnmy-wide impact f this prject in term f emplyment creatin is expected t be arund jbs pprtunities. In Eastern Cape Prvince, the largest share f frmal jbs pprtunities created by the prject wuld be semi-skilled and unskilled jbs, fllwed by skilled jbs. A large number f infrmal sectr jbs is als supprted by this prject

5 Figure 2: BAIC Cnstructin Prject Impact n Jbs per Skills & Infrmal Emplyment