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“The Coega Development Corporation (Coega), developer of the 9003ha Coega Special Economic Zone (SEZ) and trusted infrastructure Implementing Agent of Choice in South Africa, with a footprint beyond the borders of the country, is pleased to announce that it received an award of excellence, the prestigious Transformation Entity of the Year Award, at the 5th annual Construction Industry Development Board’s (CIDB) Empowerment and Recognition of Women in Construction Awards, held on Thursday, 22 August 2024, in Sandton, Johannesburg,” says Dr. Ayanda Vilakazi, Coega’s Head of Marketing, Brand and Communications.

In the 2023/24 financial year, Coega achieved a remarkable R1.027bn in SMME procurement spend, with over R460m allocated to black women- and youth-owned SMMEs. This translates to a 69.41% achievement of SMME procurement expenditure targets, of which 36% was directed towards women-owned businesses.

Coega has facilitated CIDB upgrades for 81 SMMEs, enabling them to secure larger contracts and expand their operations. The organisation’s exemplary achievement of a level 1 Broad-Based Black Economic Empowerment (B-BBEE) rating, coupled with the successful implementation of the BEE Scorecard Improvement Programme, have empowered 600 black-owned companies to enhance their B-BBEE status.

The Deputy Minister of Public Works and Infrastructure, Honourable Sihle Zikalala, said: “We are here to highlight and celebrate the success stories of women in this maledominated construction industry and recognise the commitment amongst stakeholders to support women in their professional growth and development.

The National Development Plan views the construction industry as an engine for job creation and inclusive economic growth, with infrastructure development described as a flywheel of the South Africa Economy,” continued Honourable Zikalala.

The Transformation Entity of the Year category recognises organisations that champion gender equality and foster the growth of women-led businesses within the construction sector. As an Infrastructure Implementing Agent of Choice, the award was received by Coega’s SMME Development Project Coordinator, Ms. Nazlie Allie, highlighting the alignment of the award category with Coega’s broader socio-economic development mandate as a public entity.

Coega’s recognition as the Transformation Entity of the Year is a testament to its impactful work in driving positive change and empowering women. The organisation’s dedication to creating a supportive environment for women entrepreneurs in the SMME arena has been instrumental in its success.

Ms. Unathi Maholwana, Coega’s SMME Development Programme Manager, expressed pride in the achievement: “This award is a testament to the hard work and dedication of our team in empowering SMMEs. Our comprehensive SMME Development Programme, which includes BBBEE compliance, training, mentorship, and CIDB grading support, has been instrumental in fostering the growth and sustainability of these businesses, and in turn, Coega’s success in this sphere of socio-economic development.”

In conclusion, Coega’s win as the CIDB ERWIC Transformation Entity of the Year is a resounding affirmation of Coega’s position as a leader in socio-economic development and as a designated Implementing Agent of Choice for certain key projects in the South African Economic Reconstruction and Recovery Plan aligned to the National Development Plan Vision 2030 and the National Infrastructure Plan 2050. The award follows Coega’s Infrastructure Development Award at the Africa Career Summit 2024 and Community Builder Award at the Black Business Quarterly Awards 2024, demonstrating an unwavering commitment to inclusive socio-economic development.

The Coega Development Corporation (Coega), recently, welcomed a delegation from the High Commission of Namibia and the Namibia Investment Promotion and Development Board (NIPDB) for a significant benchmarking visit to the Coega Special Economic Zone (SEZ), says Dr. Ayanda Vilakazi, Coega’s Head of Marketing, Brand and Communications. This initiative underscores Coega’s commitment to enhancing investment prospects across Southern Africa. The visit focused on highlighting Coega’s automotive investment strengths and identifying potential partnerships to advance the Southern African automotive industry.

Ms. Denise van Huyssteen, Chief Executive Officer of the Nelson Mandela Bay Business Chamber, emphasised the importance of fostering mutually beneficial trade relations with neighbouring countries.

“It is vital that as we position the Bay as the diverse manufacturing imports and exports based on the African continent, that we develop strong trading relationships with bordering countries such as Namibia.

“Through strengthened ties and collaboration, as well as the exchange of technical expertise, we believe that there are various trade opportunities which can be unlocked not only in the automotive sector, but also in the hydrogen and tourism sectors,” said van Huyssteen.

The benchmarking visit between Coega and the NIPDB marked a significant step towards strengthening economic ties and fostering industrial growth in Southern Africa. By sharing knowledge and exploring collaborative opportunities, both parties have demonstrated a commitment to developing the automotive sector and creating a more competitive investment landscape in the region. The visit lays the groundwork for future partnerships that will drive sustainable economic development and job creation.

Mr. Francois van Schalkwyk, the Executive Director for Investment at the NIPDB explained that the Eastern Cape Province is a light tower in the automotive sector: “As a delegation, the purpose of our visit to Coega is to learn more about the opportunities in the auto industry and explore the depth of these opportunities, especially, in terms of in auto manufacturing. A primary focus for us is how we can substitute imports with local products to further develop the Southern African economy.”

As Namibia’s foremost investment agency, the NIPDB is dedicated to fostering a conducive environment for investment. Dr. Vilakazi remarked: “This exchange, facilitated by the Nelson Mandela Bay Business Chamber, aligns with our ongoing efforts to promote knowledge sharing among development partners and to reinforce Coega SEZ’s reputation as a leading investment hub in Africa.”

This visit marks a crucial step in fostering regional partnerships and enhancing the investment landscape in Southern Africa.

Over the past 30 years, South Africa’s economic growth has been severely impacted by three major global crises, including the 1997/98 Asian financial crisis, the 2008/09 global financial crisis, and the economic aftermath 2020 Covid-19 health pandemic. These events spurred unprecedented macroeconomic instability, leaving the country particularly vulnerable. Despite these obstacles, the South African economy has shown resilience and has made some progress in development, although at a slower pace than expected. Dr. Nicolene Hamman, Economist at the Coega Development Corporation (Coega), writes that the country has faced and overcome numerous economic challenges, demonstrating its ability to adapt and persevere.

As democracy took root in South Africa, the government implemented various policies, which are a combination of fiscal and monetary measures enacted to both strengthen and create a more inclusive South African economy. Despite these efforts, economic growth has been highly volatile. During the first 15 years of democratic rule, real Gross Domestic Product (GDP) growth averaged 3.6%, with a peak of 5.6% in 2005. However, this positive trajectory was disrupted by the 2008/09 global financial crisis and the 2020 Covid-19 pandemic, leading to sustained weakness in real output growth.

During this period, productive sectors such as manufacturing, mining, and construction struggled to maintain their growth momentum, while the private service, agriculture, and public service sectors experienced more robust expansion. This essentially serves as an indication that the structure of the economy shifted from being “supply-centered” to being more “demand-centered”. In other words, consumption is outpacing production. This also completely nullifies Say’s law of markets theory in a South African context that “supply creates its own demand”.

A decline in efficiency, marked by low global competitiveness, rampant corruption, and deteriorating infrastructure, has stifled economic progress. Additionally, the economy has struggled to create enough jobs for its growing workforce. These challenges have collectively hampered investment, job creation, and overall economic growth.

Statistics South Africa (Stats SA), recently, revealed that household spending contributed to over 60% of GDP in 2023, emphasising the pivotal role of consumers in the South African economy. In addition, it underscores the critical link between consumer spending, economic prosperity, and social stability. On the other hand, this finding raises several pertinent questions. Considering the current economic landscape characterised by high unemployment, escalating living costs, constrained financial conditions, and elevated debt levels, what are the prospects for economic growth? How can job creation be stimulated in a predominantly demand-driven economy? Could this consumer-centric economic structure explain the persistent challenge of achieving satisfactory employment rates over the past three decades?

To stimulate job creation, South Africa must prioritise investment in labour-intensive sectors such as agriculture, agro-processing, manufacturing, construction, logistics, and renewable energy, alongside robust support for small businesses. This should form the cornerstone of the country’s industrial policy to reinvigorate economic growth. However, the question remains whether a clear industrial policy currently exists, given the recent inauguration of the 7th Administration and the dawn of a new era under a Government of National Unity (GNU).

Notwithstanding, the broader economic landscape remains challenging. South Africa’s deep integration into the global economy renders it susceptible to external shocks, while domestic headwinds such as social ills, high crime rates, and the sluggish pace of economic reforms further impede growth prospects. The country’s economy has also demonstrated limited resilience to recent extreme weather events, exacerbating its challenges. Recent World Bank Global Economic Prospects forecasts indicate that the South African economy is expected to experience modest growth, with real GDP projected to increase to 1.2% in 2024, 1.3% in 2025, and 1.5% in 2026.

However, these projections are subject to considerable upside and downside risks due to uncertainty as the global economy navigates multiple geopolitical tensions, major elections in advanced economy group, as well as policy adoption following an inauguration of a new government domestically.

Despite navigating numerous economic challenges over the past three decades, the South African economy has demonstrated resilience, with some development progress achieved, at far lower levels than anticipated. Several groundbreaking projects and initiatives have been implemented to stimulate growth, such as the Growth, Employment and Redistribution (GEAR) policy, Accelerated and Shared Growth Initiative for South Africa (ASGISA), the New Growth Path, various trade policies, black industrialist programmes, as well as the development of industrial parks and special economic zones (SEZs).

In fact, the Coega Special Economic Zone (SEZ) stands out as a successful example of an industrial policy intervention aimed at job creation and economic development in the Eastern Cape. Since its establishment in 1999, the Coega SEZ has consistently contributed to the province’s development and has demonstrated sustained growth in manufacturing income as a percentage of the Eastern Cape’s manufacturing Gross Value Added (GVA) over the last five years. According to the latest Coega SEZ Census 2023 published by Stats SA in 2023, the Coega SEZ contributed significantly to Nelson Mandela Bay’s economy, accounting for 64.2% of the metro’s manufacturing GVA. These figures underscore the pivotal role of industrial parks and SEZs in driving industrialisation and job creation, particularly during economic downturns.

The government has implemented various structural reforms and programmes aimed at promoting economic growth and development in the country and at a provincial level.

The 7th Administration has demonstrated a continued commitment to these efforts, with a particular focus on fostering an inclusive economy and securing a prosperous future.

Recent advancements in addressing loadshedding and port-related challenges have positively impacted growth prospects. These improvements signal the government’s determination to address critical challenges and inspire confidence among investors and citizens alike. The government’s dedication to reform and programme implementation is a crucial step towards fostering economic growth and development.

On Monday, 12 August, the Coega Development Corporation (Coega), in collaboration with the Nelson Mandela University, orchestrated an admissions and career counselling workshop for the Coega Maths and Science Programme (MSP), Class of 2024. The engaging session, hosted by the Coega Human Capital Solutions in Gqeberha, provided life lessons and guidance to the MSP graduates on university course options and the application process for Science, Technology, Engineering, and Mathematics (STEM) fields in 2025.

Nelson Mandela University Marketing Events Specialist, Ms. Nosithembele Mrara said that the workshop aligned with the university’s ‘Leave No Learner Behind’ philosophy. “These students have already completed Grade 12 and are embarking on a journey to pursue a career in their chosen field. We wish them well and confident that they will make us proud,” said Mrara.

The Coega MSP is a fully funded Corporate Social Investment (CSI) initiative that enables learners to pursue careers in STEM by improving their matric results in Mathematics and Physical Science. This is in line with Coega’s vision of being a leading catalyst for championing of the socio-economic development.

Coega’s Corporate Social Investment (CSI) Manager, Ms. Sylvia Graham urged the learners to choose wisely and to follow through with their ambitions after graduating from the programme at the end of this year. “As Coega, our investment seeks to give the learners tools they need to progress to the next level. We understand that there are difficult hurdles ahead on the journey to becoming professionals, and that is one of the reasons Coega has designed programmes like this,” said Graham.

Over the past decade, the Coega MSP has benefited over 1,000 learners, providing them with necessary skills and knowledge to pursue STEM related qualifications at tertiary institutions. The MSP Class of 2023 produced 10 distinctions in Mathematics. Thirty-three learners excelled with above 70% in Mathematics, and 11 achieved above 70% in Physical Science.

“Today taught me that reading and comprehending information are extremely important. After completing the MSP, I hope to follow a career in Finance or Health Sciences,” said Ms. Nikita Magwanya (19), from the MSP Class of 2024.

In conclusion, the collaborative effort between Coega and the Nelson Mandela University is testament to a shared commitment to nurturing future leaders in STEM and enabling them with the tools and knowledge to succeed.