The Coega Development Corporation (CDC) today hosted the Director General (DG) from the Department of Trade and Industry (DTI) who congratulated the CDC on a well-managed IDZ.
“Coega is a flagship programme we are very proud of. It’s effectively the best functioning and most successful IDZ in the country and also has world class Management and Corporate governance,” says Lionel October, Director General of the Department of Trade and Industry.
The DG’s visit to the CDC follows from the dti’s engagement with the EC government on the Special Economic Zone (SEZ) programme.
The CDC Chief Executive Officer (CEO) – Pepi Silinga, who accompanied the DG on a tour of the IDZ today, highlighted the dti’s contribution and commitment towards the success of the Coega IDZ. “We remain forever indebted to the DTI for its continued support and guidance throughout the years,” says Pepi Silinga, CDC CEO.
The CDC has seen great success in the year 2016 managing to maintain its trajectory as the preferred Foreign Direct Investment destination of choice by consistently ensuring that projects brought about in the IDZ translate to tangible jobs and skills development.
The 2015/16 highlights include the signing of 17 new investors with an accumulated valueof R26.99 billion. However, over the past five years, the CDC signed a total of 61 new investors with a combined investment value of R35.8 billion. Currently, the CDC has 36 operational investors in the Coega IDZ with an accumulated investment value of R6.609 billion.
As regards job opportunities, in line with the organisations mandate and objectives to reduce unemployment in the EC, the CDC created 18 366 jobs in the Coega IDZ ( 7 174 operational jobs and 11 192 construction jobs) in the period 2015/16FY. However, since inception of the CDC in 1999, the organization has successfully created more than 96 776 job opportunities and trained more than 85 886 people.
According to Dr. Ayanda Vilakazi, CDC’s head of marketing and communication, these results are attributable to the successful implementation of the CDC’s five year Sustainable Growth Strategy (SGS), that is beginning to bear fruit; and which focuses on a) financial sustainability, b) strategic partnerships, and c) business intelligence, all of which are aimed at creating a sustainable organization that will continue to create job opportunities, training and development, as well as SMME development and support..
“The Coega IDZ is now well positioned as a leading South African investment destination of choice,” said Dr. Vilakazi.
Of the key value propositions of the CDC is products differentiation, which focuses on ideal business location adjacent to the two Ports of Ngqura and Port Elizabeth (15km away), purpose-built for manufacturing including beneficiation of export goods, world-class infrastructure- strategic location at the crossroads of east-west trade routes globally and within Africa, customised solutions for investors, , incentives, one-stop-shop, ICT services base infrastructure- infrastructure which allows for the connectivity of voice/data/internet and video services up to the boundary of the tenants’ premises, support with Safety, Health, Environment and Quality services, for example EIA processes, facilities for skills development (with personnel to provide customised solutions), and custom-controlled areas
In this current year, the CDC successfully concluded a commercial deal of R11 billion with BAIC for a completely knocked down (CKD) automotive manufacturing plant in the Coega IDZ. This investment will have a far-reaching economic impact in terms Gross Domestic Productin the Eastern Cape and the country at large, with thousands of job opportunities to be created.
In addition, the Coega IDZ was selected as one of the locations for the gas-to-power programme with 1000 MW of the power facility to be located in the Coega IDZ. This project is key for energy security, diversity and socio-economic development.
Furthermore, despite the unsettled economic climate, it is clear that the CDC has what it takes to attract investors so as to boost the South African GDP and this year has shown more evidence of this potential. In 2017, the CDC is expecting to continue in this positive trajectory, thus contributing towards job creation, alleviation of poverty, and reducing inequalities.
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