MyPE

Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

A springboard to the rest of Africa

By

With Asia being the largest recipient of Foreign Direct Investment (FDI) flows in the world, Africa has also seen a significant growth in FDI inflows. United Nations Investment Trends Monitor (UNCTAD) demonstrates a resilient FDI flow to developing economies. The report highlights a 3% increase in FDI flow to developing economies, with Africa having registered modest increase of 6% in 2018 (US$40 billion, up from revised US$38 billion in 2017).

The report further tracks South Africa steep fall in FDI inflows since 2014, comparing it to the registered strong recovery demonstrated by South Africa, with inflows amounting to US$7.1 billion in 2018 compared to US$1.3 billion in 2017. Such was driven by large investments in mining; petroleum refining; food processing; information & communication technologies and renewable energy.

In an effort to encourage growth in FDI flows for the Sub Saharan region, the Coega Special Economic Zone (SEZ) has dedicated much of its long-term strategy to focus on investment opportunities, which will secure a firm position for Africa globally. As a result, Coega SEZ recognised as the leading SEZ in Africa and a gateway to world markets.

The SEZ’s strategic location and adjacency to the deep water Port of Ngqura has seen it become a springboard to investors looking to explore the greater African market. “Our location is unique; it provides an opportunity for potential investors to penetrate the African market,” says Dr Ayanda Vilakazi, CDC unit head brand, marketing & communications.

This has led to the Coega SEZ becoming home to various leading Fortune 500 companies seeking access to a wider market. The CDC, currently home to forty-three (43) operational investors with an investment portfolio in excess of R7-billion boasts a number of investors playing in the African market.

“The story of First Automotive Works (FAW) SA is one we are very proud of. We celebrate the success they have had in the African market with some of their trucks proving to be customer favourites in Tanzania and the wider SADAC market,” highlights Dr Vilakazi.

The FAW mega project located at the Coega SEZ in Zone 2 has seen rev up to become the SA’s second biggest truck exporter.

At the back of this, the Coega SEZ has also seen the latest inclusion of another Fortune 500 company seeking to penetrate the African market, BAIC SA. The investment valued at R11 billion, once operational will enhance the diverse portfolio of export orientated investors at the Coega SEZ

The BAIC plant located in zone 1 of the Coega SEZ is currently under commissioning phase.

Late last year, the Coega SEZ announced the recent inclusion of HELLA – a Germany-based lighting and electronics specialist. HELLA announced its intentions to embark on a strategic decision with their operations in Sub-Saharan Africa that will enable them to serve as the gateway into Africa. The R30 million investment is set to start operating out of their new facility middle of this year.

The HELLA facility will become the base for the African market.

The following two tabs change content below.
My Twitter profileMy Facebook profileMy Google+ profileMy LinkedIn profileMy Flickr profileMy Pinterest profile

Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.