The Coega Development Corporation (Coega) is a shining example of how a government-driven initiative can effectively accelerate sustainable socio-economic development in a region. Located in Gqeberha, in the Eastern Cape Province of South Africa, Coega has demonstrated a steadfast commitment to driving investment, infrastructure projects, skills development and business solutions, that not only benefit surrounding communities, but also help contribute to the overall development of the region and country, and thus, strives to reduce unemployment and poverty, aligned to the National Development Plan, Vision 2030, writes Dr. Ayanda Vilakazi, Coega’s Head of Marketing, Brand and Communications.
Coega was established in 1999 by the visionaries of the time, who should continue to be celebrated by the organisation and stakeholders, with the aim of creating an industrial development zone that would attract and support foreign and domestic investment, promote inclusive economic growth, provide skills training, and create sustainable jobs, in line with its mandate and vision. In pursuit of its bold mandate, Coega has evolved into multi-faceted business by diversifying its service offering to bolster its impact on the social and economic upliftment of the communities in its areas of operation. This diversification strategy is underpinned by the extension of in-house expertise and services to external institutions and consumers.
For example, Coega enables infrastructure development across the country and the African continent as an Infrastructure Implementing Agent of Choice and through its flagship Coega Africa Programme (CAP), which offers facilities maintenance, technical advisory, and the co-development of SEZs, industrial parks, dry ports, and public infrastructure in several African countries. Other commercial services offered to the public by Coega, include Coega Technologies and Consulting, Coega Travel Agency, the 4-Star Bluewater Bay Sunrise Hotel, the 3-Star Coega Vulindlela Accommodation and Conference Centre, and the Coega Customs Depot, to name a few.
Further, Coega has been instrumental in driving infrastructure projects that have had a positive impact on the development of the Eastern Cape Province based on 24 years’ expertise in infrastructure delivery and maintenance informed by the National Infrastructure Development Plan 2050. As an Infrastructure Implementing Agent of choice, during the 2022/23FY, Coega managed a growing client portfolio in excess of R5bn, and implements small-scale and mega infrastructure projects, across South Africa and the continent. Notable achievements include the almost R1 billion investment by the Eastern Cape Department of Health (ECDoH) in the Cecilia Makiwane Hospital precinct. More than 3000 jobs were created in the project and a further 29 emerging Small Micro Medium Enterprises (SMMEs) contractors benefited from the largest medical infrastructure development project in the Eastern Cape. Notable past projects include the Anton Lembede Maths, Science and Technology Academy, Pholela Special School for Learners with Special Educational Needs, Sipetu District Hospital and YWCA Special School.
Moreover, Coega’s role as an implementing agent provides opportunities through the inclusion and development of SMME work packages for infrastructure project delivery. Often, the SMMEs are led by entrepreneurs from local communities who have honed their artisanal skills to launch their own businesses and provide employment within their communities.
In terms of SMME development and support, Coega’s policy on SMME procurement spend is to ensure 33% SMME involvement in all infrastructure projects. During the 2022/23 financial year (FY), Coega surpassed this target by achieving an impressive 47.93% procurement spend on SMMEs, shining a spotlight on the value of skilled labour. In addition, Coega has achieved a Level 1 B-BBBEE Certificate, improving from Level 3, last year.
Coega’s commitment to social development is also evident in its various community initiatives, such as skills development programmes, education and healthcare support, and enterprise development projects. Investment attraction and infrastructure delivery both necessitate a diverse pool of skilled labour to achieve success.
Coega has responded to this need through its Skills Development Centre. The Coega Skills Development Centre plays a pivotal role in empowering individuals through skills development and ancillary services. The Centre facilitates needs-driven training, including short courses, learnerships, and apprenticeships, that speak to lifelong learning, employability, and entrepreneurship. Audited reports from the 2022/23 FY show that Coega provided training to over 3,932 individuals during the 12-month period.
One of Coega’s most significant achievements, however, remains the outstanding success of the Coega SEZ, which has become a hub for major investments in various sectors, including automotive, agro-processing, energy, business process outsourcing, and logistics, to name a few. This has not only created thousands of direct and indirect job opportunities but has also initiated ripple effects with a reach extending to the entire Eastern Cape Province and beyond to the rest of the country in terms of benefits. Coega’s commitment to driving investment has, in fact, resulted in billions of rands into the economy, leading to increased economic activity and a rise in living standards for many in the region. The recent Coega SEZ Census Report by Statistics South Africa outlines the Coega SEZ’s contribution to the region’s gross domestic product, exports, wages and salaries, etcetera.
The Coega SEZ is home to the world-class deepwater Port of Ngqura, which has bolstered the region’s logistical capabilities and has the potential to become a key gateway for trade in the Southern African region. Additionally, Coega has spearheaded various renewable energy projects in its SEZ, contributing to the country’s goal of diversifying its energy mix and reducing its carbon footprint. Coega SEZ energy investors include the R3.5-billion 342MW Dedisa Peaking Power Plant and the R105 billion Hive Hydrogen green ammonia project, with gas-to-power as well as green energy projects underway.
Currently, the Coega SEZ is home to 58 operational investors (and growing) across various sectors of industry with about 31% of its investments being FDI. Two of the largest employers within the SEZ, employing 2,277 and 1,032 respectively, are in the agroprocessing and business process outsourcing sectors. Many employed by these companies at Coega constitute youth and people from surrounding areas.
Coega’s commitment to socio-economic development is evident in all aspects of its operations, devised to create meaningful change in communities. The organisation’s multi-faceted approach, from skills development and training to SMME development, is testament to its vision to be a leading catalyst for the championing of socio-economic development. The Coega Development Corporation serves as an inspiration for sustainable socio-economic development in the Eastern Cape Province, and its impact extends beyond its immediate surroundings. It is a model that other regions and countries can look to for inspiration and guidance in their own development endeavours.
