The Coega Development Corporation (CDC) announced that the first six months of the 2017/18 financial year have been challenging with the country plunging into a recession in the first quarter yet the organisation still managed to swim against the tide to meet and exceed its half-yearly performance targets.
The CDC, which released its mid-year investment performance report today, highlighted it has signed eight (8) new investors (target = 3) exceeding its mid-year performance target by 167%. Last year, the CDC signed 16 new investors (target = 7) exceeding its annual target by 129%.
The 8 new investors would be contributing over R343, 4 million into the regional economy.
Such an achievement by CDC would certainly bring the much needed jobs for the region given the scourge of high expanded unemployment rate of 44.5% (Q2/2017).
Furthermore, investors operating in the Coega SEZ increased their workforce by 69% in the last financial year contributing to reducing unemployment.
Total investment contribution by 16 new investors signed last year was R11, 685 billion contributing approximately 0.23% to the Province Gross Value added (GVA).
The new investors form part of the CDC’s core targeted areas and are derived from a hybrid of sectors which include Logistics, Agro Progressing, Metals and Chemicals. The names of the 8 new investors signed would be released soon. “We are keeping our cards close to our chests, with an announcement on the names of the investors to be made soon,” says Dr Ayanda Vilakazi, CDC’s Head of Marketing, Brand and Corporate Communications.
According to the Rand Merchant Bank/Bureau Economic Research Business Confidence Index (BCI) released in September 2017, after plunging from 40 to 29 in the second quarter, the RMB/BER BCI rose by six points to a still low 35 in the third quarter. Following a collapse in the second quarter, at least business activity in general did not deteriorate further. We are also glad that the country has come out of a recession, achieving a 2.5% quarter-on-quarter (Q2/2017) economic growth.
According to the International Monetary Fund (IMF), even though much of the outlook for Sub-Saharan Africa (SSA) remains challenging, growth is projected to rise this year and in 2018.
Therefore, “the CDC is continuously encouraged by positive sentiments in the market, more so by the ever hard working men and women who, every day of their lives, dedicate their time and skills to see the Coega SEZ achieves great strides in attracting new investors into the region,” says Dr Vilakazi.
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