Guest

Mr. Idriss Mouchili, Director of the Coega Africa Programme (CAP) at the Coega Development Corporation (Coega), recently shared insights during a panel discussion on De-risking Africa’s Infrastructural Investment in a Changing World at the Infrastructure Africa Conference in Cape Town. Emphasising the significance of the African Continental Free Trade Area (AfCFTA) agreement in achieving this objective, Mr. Mouchili underscored the pivotal role of the AfCFTA in driving South Africa’s economic growth following its ratification by the South African Parliament.

The AfCFTA stands as a pivotal tool poised to unlock export markets for manufactured capital goods, technology, and services, fostering continental integration through the establishment of strategic trade and logistics corridors. However, Mr. Mouchili points out that a notable impediment to progress lies in the prevailing one-size-fits-all approach to risk assessment across Africa.

Despite the continent’s rich diversity in geography, culture, and language, the current practice of assigning project risks uniformly across entire regions poses challenges. This standardised approach can unjustly penalise countries situated far from the source of risk, even when located thousands of kilometres away. To harness Africa’s full potential, a more nuanced and tailored approach to risk assessment is imperative.

Developing a robust de-risking strategy for Africa’s infrastructure investment hinges on two fundamental steps. Firstly, it involves the segregation of risks into country-specific and project-specific categories. Secondly, it necessitates the allocation of these risks at the appropriate level for effective management.

Country risks encompass the uncertainties associated with investing in a particular nation, including factors like political instability, customs delays, complex tariff structures, challenges related to capital repatriation, and property rights issues, among others.

Viewed through the lens of the Capital Asset Pricing Model (CAPM), country risks should be addressed through bilateral or multilateral engagements between African countries or international organisations. Leveraging existing frameworks or forging new agreements can help mitigate and resolve these risks effectively, fostering a conducive environment for sustainable infrastructure development and investment across the continent.

This increased investor confidence translates directly into a greater need for experienced partners. With 25 years’ expertise and capabilities in infrastructure development, engineering, procurement, project management, construction and facilities management, and industrial parks development, Coega is committed to being the leading catalyst for inclusive economic development in line with the broader African regional developmental agenda and economic imperatives.

In conclusion, de-risking Africa’s investment requires a collaborative effort to address country-specific challenges and enhance project-level risk management. By adopting a more nuanced approach, Africa can unlock its immense economic potential, and Coega is positioned to play a pivotal role in this transformative process.

The Coega Development Corporation (Coega) is proud to announce that the organisation received the Community Builder of the Year Award at the 20th annual Black Business Quarterly (BBQ) Awards Ceremony, which took place at the Emperor’s Palace in Kempton Park on Friday, 26 July 2024. The Award was received by Coega Board Members, Ms. Ziyanda Potelwa and Mr. Sibusiso Nduna, demonstrating the importance of the award category in alignment with Coega’s socioeconomic development focus.

The BBQ Community Builder Award category recognises an organisation’s commitment to community development through innovation, creativity, integrity, a proven record of achievement, and leadership. Coega’s recognition as the winner in this category emphasises the Corporation’s commitment to community development through job creation, skills and training, and social infrastructure development, amongst others. For the past 19 years, the BBQ Awards have celebrated exceptional businesses that are driving positive change in South Africa. The Awards encourage and promote sustainable black business and transformation through the recognition of good corporate governance, leadership, and achievement.

Dr. Ayanda Vilakazi, Coega’s Unit Head of Marketing, Brand and Communication said: “We are honoured to be recognised for creating a more inclusive and prosperous future for all. This award serves as a powerful testament to Coega’s achievements. I have no doubt that it will encourage our employees and stakeholders to support Coega’s vision to be a leading catalyst for the championing of socio-economic development in line with the National Development Plan, Vision 2030.

“This recognition underscores Coega’s 25 years of unwavering commitment to driving positive change and fostering sustainable growth. In the last financial year alone, subject to final audited results by the Auditor-General of South Africa, Coega created 10,154 cumulative operational jobs and 4,126 construction jobs, trained 4,374 people, and directed R1,027bn in procurement spend to small, medium, and micro enterprises (SMMEs) which amounted to 69,41%,” concluded Dr. Vilakazi.

The Coega Development Corporation (Coega) hosted a group of Maritime Management Masters students and faculty members from the Nelson Mandela University Business School (NMU Business School) for a comprehensive tour of the 9003-hectare Coega Special Economic Zone (SEZ) on Wednesday, 24 July 2024. The purpose of the tour was to offer students firsthand insight into the diverse array of industries thriving within the SEZ, spanning automotive, agroprocessing, energy, and logistics sectors, as highlighted by Dr. Ayanda Vilakazi, Coega’s Unit Head of Marketing, Brand, and Communication.

Dr. Nomtha Hadi, NMU Lecturer and Master of Maritime Management Coordinator, elaborated on the objectives of the visit, stating, “Our goal was to gain a holistic understanding of the Coega SEZ, its role in driving economic growth, particularly in the maritime sector. Additionally, we aimed to delve into the progress made in attracting investments and positioning South Africa and the SEZ as a pivotal investment and logistics hub. Lastly, we sought to identify challenges encountered by the port and the SEZ, pinpoint potential research opportunities, and foster collaboration between our masters students, their affiliated organisations, and the Coega SEZ.”

With a keen focus on economic prospects within the maritime industry, Coega has been actively pursuing opportunities for development, paving the way for enhanced collaboration and growth within the sector.

NMU Maritime Masters student, Siyasanda Mdakane shared her perspective on the visit: “The visit to the Coega SEZ was incredibly refreshing, and it was amazing to witness how the economy is being unlocked by this institution. It was fascinating to see how the SEZ is a strong pillar of the maritime industry, especially with its close proximity to the Nelson Mandela Bay Ports. One of my key interests was understanding how the different companies operating in the Coega SEZ are addressing the high rate of unemployment locally, and it was reassuring to hear that a high percentage of the companies are employing locally.”

By providing students with the opportunity to visit Coega SEZ and learn about various industries, the initiative aligns well with Mandela’s vision of equal access to quality education for all, while also contributing to Sustainable Development Goal (SDG) 4, which focuses on ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all.

Dr. Hadi, expressing her sincere gratitude, shared: “The visit exceeded our expectations, and students found these visits incredibly insightful as they provided a broader understanding of the intelligence underpinning Coega’s strategic projects and its social responsibility, not only towards SMME development but also in training and skills development.

The visit also addressed issues around sustainability, demonstrating Coega’s commitment to sustainable development and the social and economic transformation achieved through the SEZ. The visit proved highly beneficial for our postgraduates, offering invaluable exposure, and I am particularly pleased with the warm welcome.”

Coega remains committed to creating jobs, developing skills, and empowering students to thrive in a dynamic world by providing unparalleled opportunities to expand their knowledge and enable them to make informed career choices. As a leading SEZ in Africa, Coega is dedicated to continuous learning, sustainable development, innovation and inspiring the next generation of changemakers to shape a better future,” concluded Dr. Vilakazi.

The Coega Development Corporation (Coega) speaks on the significant progress in the development of the Wild Coast Industrial Park, a pivotal project aimed at enhancing economic growth and industrialisation in the Eastern Cape Province.

Dr. Ayanda Vilakazi, Coega’s Unit Head of Marketing, Brand, and Communications, emphasising Coega’s 25 years of experience and International Organization for Standardization (ISO) certification, stated that Coega is spearheading the project’s implementation to enhance state capacity and service delivery, ensuring the realisation of the Wild Coast Industrial Park to drive economic transformation and uplift the region.

The Wild Coast Industrial Park was established to bolster the agro-processing sector, promote the beneficiation of agricultural resources, build manufacturing capabilities, and rejuvenate Mthatha and surrounding areas as a significant industrial hub. Aligned with the District Development Model, the project prioritises job creation, infrastructure development, and innovation in rural provinces and districts.

Spanning 226 hectares, the park boasts proximity to major transport routes, robust infrastructure development, and a strategic location central to three district municipalities. With signed investment commitments from sectors such as agroprocessing, beverage manufacturing, poultry processing, and starch manufacturing, the Park showcases its potential as a vital industrial hub.

During the 2022 State of the Province Address (SOPA), the Eastern Cape Premier, Honourable Lubabalo Mabuyane, declared that the “Wild Coast Industrial Park is no longer a dream, it is a reality.” Progress has been made, with the completion of phase 1 (fencing) and the rollout of bulk infrastructure, including sanitation, water, and electricity. The Department of Trade, Industry and Competition (the dtic) has invested R49.5 million in the project, expected for completion in November 2025.

According to the former Minister of Trade, Industry and Competition (the dtic), Honourable Ebrahim Patel, during the 2022 budget vote, “Transformation is about building an economy that works where our people are bringing development to rural provinces and districts. Our revised approach to spatial industrial policy, informed by the District Development Model, will see the dtic supporting projects that create jobs, infrastructure, and innovation in Districts across the country.”

The Wild Coast Industrial Park aligns with this approach, and the Eastern Cape Provincial Government is currently implementing the Wild Coast Industrial Park Strategy, driving its development forward.

One key contributor for successful establishment and operations of SEZs and Industrial Parks today is access to fast, reliable, and cost-effective telecommunications systems and services for investors located in the zone. Notably, in 2022/23 financial year (FY), significant progress was made in information and communication technology, including the completion of a market study on telecommunication services, finalising fibre infrastructure and connectivity designs, completing data centre designs, and initiating the appointment of an internet service provider and data centre construction, to name a few.

In the 2024/25 FY, the planned economic research for the Wild Coast Industrial Park will focus on several key areas, including the agroprocessing incubator, logistics hub feasibility study, abattoir operational model analysis, blue ocean market study, digital hub feasibility, and hospitality industry. Moreover, social facilitation and stakeholder engagements will continue, and Small, Medium, and Micro Enterprise (SMME) training will be provided to ensure that targets are achieved.

“As the Implementing Agent of Choice, Coega is committed to ensuring that the Wild Coast Industrial Park becomes a success story, driving inclusive economic growth, job creation, and fostering innovative solutions in the Eastern Cape Province. With its 25-year expertise and experience in the development of mega infrastructure projects and industrial parks throughout the African continent, Coega is confident that the project will achieve its objectives and become a key industrial hub in the region,” concluded Dr. Vilakazi.