(Ecofin Agency) - German automaker Mercedes-Benz announced June 26 an investment of $700 million to develop its South African factory in East London (South East). The factory handles 110,000 cars per year, sold in 84 countries worldwide. Under the extension plan, the factory will be extended by two-third so as to produce new-generation Class C sedans. The move is expected to generate 800 additional jobs in this plant which currently has about 3,300 employees. “The investment is also a sign of our commitment to South Africa and efforts to revive economic growth, as well as the socio-economic development of the East London region," said Markus Schäfer, Mercedes-Benz Executive Board Member and Plant Manager. According to President Cyril Ramaphosa who welcomes the decision, this investment is a proof of Mercedes Benz's confidence, reflecting that South Africa is a favorable destination for investment. He said it should help black traders who will join the manufacturer's supplier chain. In South Africa, automotive industry accounts for about 7% of GDP. Other international car manufacturers such as Toyota Motor, Ford and BMW AG, are also present in Africa’s most industrialized country. Let’s note that economic growth revival is atop Cyril Ramaphosa’s priorities.