Despite the local and global economic challenges and slower economic growth, such as the tax revenue shortfall estimated at R50.8bn, a rising debt-to-GDP ratio and the revised growth for 2017 downwards from 1.3% to 0.7%.
The Coega Development Corporation (CDC) has had a “significant and good year, contributing to the Eastern Cape (EC) Regional Economic Growth,” the CDC announced today.
The CDC closes the 2017 calendar year with a record high in terms of operating investors, who on a monthly basis pay local workers’ salaries, provide ongoing training and development, and contribute towards the socio-economic development of the NMBM and EC, at large. To-date since inception, the CDC has recorded a staggering forty-one (41) operational investors in the Coega Special Economic Zone (SEZ). The latest investor to become operational in October 2017 includes Kenako Concrete, a R71 million state of the art concrete manufacturing facility located in Zone 5 of the Coega SEZ; this is the first black industrialist in Port Elizabeth to be funded by the Department of Trade and Industry (dti) together with the Industrial Development Corporation (IDC).
The CDC’s top nine highlights for the year (Unaudited).
- Top line self-generated revenue for both the SEZ and Other Programmes – R329 million tracking well to achieve the annual revenue targets;
- Business Efficiency – the CDC has seen the successful completion of over five (5) projects, which came online this year. The projects include Kenako Concrete, Corromaster, National Ship Chandlers, Sanitech and Fincorp Trading, all of which are accumulatively valued at R180 million;
- Hive of activity – Coega SEZ has over four (4) projects under construction, which include BAIC, Osho Cement, MM Engineering and the Customs Control Areas in Zone 1 accumulatively valued at R12 billion;
- Investment Destination of Choice – the Coega SEZ has signed no less than twelve (12) new investors in 2017 with a combined investment value of R430 million;
- Job Creation Hub – mindful of the importance of creating jobs, the CDC as at quarter two of the current FY2017/18 secured no less than 10 788 additional construction jobs and has reached 7575 operational jobs. Ensuring that it has its sights set on skills development, the CDC has trained over 2716 people;
- SMME Development – as an empowerment-driven organisation, the CDC is conscious of the important role the small business sector plays in unlocking economic growth, as a result to date CDC Procurement Spend on SMMEs is set at a target of 38% with over 45 construction contracts awarded to SMME’s valued at R91 million;
- Validation by captains of Industry – the CDC has been crowned winners in five (5) different awards since the start of the year. The awards won so far include the Vision 2030 – Infrastructure Development award, Sub-Suharan Enterprise Awards – Best International Trade Marketing Specialist in Africa, Exporters Awards – IDC Job creation, Best Provider of Service to Exporters, and Top Employer 2018 – Certified Excellence in Employer Conditions;
- Profitable for Business – the release of an independent research conducted by Muffin Consulting highlighting that over eighty percent (80%) of companies which have invested in the Coega SEZ have seen an increase in their profits since starting operations in the zone, with the benefits being felt throughout the Nelson Mandela Metro and the rest of the province; and
- CDC Impact by the numbers:
- The CDC has enabled the payment of R1.6 billion in national taxes through investors in the Coega SEZ
- This has led to the dispersement of R1.38 billion through the balance of payments to workers
- Affected a further R2.2 billion on households
- The Coega SEZ has ensured that sixty four percent (64%) of the 7575 operationally employed people in the Coega SEZ are between the ages of 18 – 35 years old
- The Coega SEZ has an impact of approximately R3.9 billion in the Eastern Cape GDP and
- Over sixty nine percent (69%) of the companies source seventy percent (70%) or more of their inputs locally.
We wish to thank all our 41 investors in the SEZ, the CDC Staff, Stakeholders, and the management of the CDC for a good performance year-to-date, despite going against a heavy economic tide locally and globally.
The CDC will officially be closed for business from 18 December 2017 and will re-open on 2 January 2018. We wish all of you a joyous and safe festive season.
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