Guest

The Coega Development Corporation (Coega), today, hosted a National Environment Month Hike celebration at the Clay Quarry within the Coega Special Economic Zone (SEZ). The event brought together employees, stakeholders and Maths and Science Programme (MSP) learners to commemorate National Environment Month and raise awareness about environmental issues.

National Environment Month aims to educate the public about critical environmental concerns such as ozone layer depletion, greenhouse gas emissions, land degradation, and species endangerment. In line with this objective, the Coega Environmental Month Hike 2024 was themed, “In their footsteps, stepping forward in nature and back in time,” with a focus on promoting awareness of local trail systems and encouraging outdoor exploration as well as an appreciation of the SEZ’s rich cultural and paleontological heritage.

The hike underscored Coega’s dedication to advancing Sustainable Development Goals (SDGs) 9, 12, 13, 14, and 15, which emphasise economic growth, sustainable development, and environmental conservation. The SDGs serve as a global framework for fostering prosperity while safeguarding the planet. Coega’s approach to the SDGs involves categorizing them into three interconnected pillars – the Economic Pillar, Social Pillar, and Environmental Pillar – to highlight the intricate relationships between the goals and their outcomes.

Mr. Sisa Xabanisa, Coega Environmental Manager, shared insights about the purpose of this year’s environmental hike, stating: “The 2024 environmental hike merges physical activity with environmental education to inspire participants to make informed decisions that support conservation and sustainability. By fostering a deeper appreciation for the natural world, we aim to encourage participants to become stewards of the environment.”

Through this hike, we sought to cultivate a deeper appreciation and respect for the natural world, encouraging participants to become stewards of the environment.

Participants had the opportunity to observe wildlife in their natural habitats, learning about species behaviour and the Coega’s conservation efforts. They gained insights into the interconnectedness of species and habitats within the Coega SEZ.”

Coega maintains biodiversity conservation through the preparation and maintenance of an Open Space Management Plan for the Coega SEZ in respect of the mandatory requirements and legislative frameworks applicable to the area. The Clay Quarry trail boasts ecological and biological diversity, making it an ideal location for the hike.

Ms. Sylvia Graham, Coega’s Corporate Social Investment (CSI) Manager said: “The collaboration between Coega’s Sustainability Business Unit and the Coega Maths and Science Programme for the National Month Hike 2024 was driven by our commitment to the Scince, Technology, Engineering, and Mathematics (STEM) Agenda. We aimed to provide the MSP learners with hands-on experience and exposure to practical applications, recognising the importance of extending learning beyond the classroom and incorporating physical activity.”

Coega’s approach to industrial development prioritises the natural environment and is a critical element to the attractiveness and value of investment locations. To this end, the sustainable development of land within the SEZ is central to Coega’s vision of championing socio-economic development through investment attraction and job creation. Coega subscribes to the SDGs as well as the to the United Nations Convention on Biological Diversity, to cultivate the SEZ’s symbiotic existence with the natural environment and promote environmental stewardship.

One of the MSP learners, Usikelelwe Zozi (19) from Motherwell, expressed her heartful gratitude, said: “Through the Coega Maths and science Programme, we are not only taught about the Maths and Science at Coega , but we are exposed to several sectors at Coega Special Economic Zone, as well. This is important to me, as someone who is interested in studying Occupational Therapy in university, a science related field. I found this experience truly informative and wish to extend a heartfelt gratitude to Coega for prioritising us and valuing our growth.”

Coega’s Young Professional from Trade Facilitation Unit, Luyolo Nkomana, said: “As we celebrate the culmination of Youth Month and National Environment Month, I’m filled with gratitude towards Coega for their unwavering commitment to employee growth and engagement. Today’s hike was a remarkable success, pushing us beyond our comfort zones and into the stunning natural beauty of the SEZ. We gained valuable insights into the historical significance of various sites within the zone, making this a truly enriching experience.”

Coega remains committed to promoting environmental awareness, sustainability, and responsible stewardship of natural resources through initiatives like the National Environment Month Hike. The organisation continues to champion initiatives that align with its mission of driving economic growth while preserving the environment for future generations.

“Coega’s Sustainability Business Unit is dedicated to promoting a culture of sustainability and environmental responsibility, aligning with the organisation’s values and vision. By supporting green practices and social programmes, Coega strives to make a positive impact on the environment and society, ultimately contributing to socio-economic development, “concluded Mr. Xabanisa.

The Coega Development Corporation (Coega) has once again showcased its unwavering commitment to socio-economic development, as it reflects on a few of its achievements in the 2023/24 Financial Year. “As the developer and operator of Africa’s leading Special Economic Zone (SEZ), Coega is pleased to announce a total of 60 operational Coega SEZ investors, [up from 58 last year] solidifying our position as a key driver of economic growth and job creation in the country,” says Dr. Ayanda Vilakazi, Coega’s Unit Head of Marketing, Brand and Communications.

Vilakazi explains that Coega has made significant strides in securing both local and foreign investments across various sectors, including automotive, agroprocessing and energy, amongst others: “These achievements underscore the pivotal role that Coega plays in advancing sustainable economic development and fostering a conducive environment for business growth and innovation. Coega has succeeded in attracting new strategic investments into the region year-on-year, with investors such Dynamic Commodities, Dairy Group, Benteler, Discovery, and others, opting to expand their operations in the SEZ.”

Coega Special Economic Zone’s 60 Investors

Recent notable Coega SEZ projects include the R3bn Stellantis Middle East and Africa Manufacturing Plant, the completion of the R60m Orion Engineered Carbons (OEC) Oil Tank Project, the development of the R1bn Coega SEZ Biofibre Hub Project, the R105bn Hive Hydrogen Green Ammonia Project, and the roll out of the Coega SEZ’s Solar Rooftop Project, to name a few.

Considering the turbulent economic environment that has impacted businesses internationally and in Africa, it is pleasing that Coega achieved eleven (11) investors, against a target of ten (10), signalling a positive trend and strong unique value proposition which continues to propel the Coega SEZ as leader in the country and on the African Continent. This year, automotive, manufacturing, agro-processing, logistics and business process outsourcing were the largest contributors to the growth of investors. Furthermore, as a story of good progress, through its SEZ investment and other business activities, Coega created a total of 13,649 job opportunities in the economy, thus contributing to the reduction of unemployment and furthering the goals and objectives of the National Development Plan (NDP, Vision 2030).

AUTOMOTIVE SECTOR DEVELOPMENT AND PLANNED SUPPLIER PARK

The 2023 announcement by the Stellantis Group to locate its state-of-the-art manufacturing plant in the Coega SEZ was a definitive display of Coega’s position as a preferred investment location in South Africa. The impending construction of the facility in Zone 2 of the Coega SEZ is forging ahead with fortitude and speed.

“The pace and efficiency at which the Stellantis project has been developed, against the headwinds of tough economic conditions, bears testimony to Coega’s expertise when it comes to unlocking investments in the region. Coega is fully committed to delivering the finest plant for Stellantis, reinforcing the Coega SEZ as an automotive hub in the country,” says Vilakazi.

The Stellantis investment is expected to facilitate the creation of massive employment opportunities in the Eastern Cape. The project is anticipated to directly create 1 000 new jobs, with thousands of hours invested in training local teams.

In line with the Auto Industry Master Plan, which supports local production for both South Africa and export markets, Coega is actively stimulating the automotive sector through high-profile projects, including an Automotive Supplier Park, a Multi-Model Automotive Processing Terminal, and the development of its very own racetrack in partnership with the Scribante, to breathe life and excitement into the region’s automotive sector.

PROGRESS ON THE ORION ENGINEERED CARBONS TANK FARM PROJECT

Another project with strong links to the automotive sector, is the Orion Engineered Carbons (OEC) Oil Tank Farm Project. The OEC Oil Tank Farm Project, which concluded hot commissioning in May 2024, entailed the development of two 18,000 m3 (cubic metre) tanks for the storage of carbon black feedstock oil, which is used in the manufacturing of tyres, amongst other high-performance applications.

Each tank compromises 80 shell plates, totalling 19,2 metres in height and weighing a total mass of 289 tons per tank. A 5,4-kilometre pipeline from the Coega harbour to the new storage facility was constructed to facilitate the transportation of the heavy fuel oil from cargo vessels docked in the Port of Ngqura. The official facility handover is scheduled to take place in August 2024.

COEGA SEZ BIOFIBRE HUB DEVELOPMENT

Leveraging on the Eastern Cape’s strengths in terms of manufacturing, Coega and its research and development partner, the Council for Scientific and Industrial Research (CSIR) established the Coega SEZ Biofibre Hub Project.

The Project involves the development of viable industrial applications for plant-based fibres to support the global competitiveness of the automotive sector, promote the greening of manufacturing chains, and foster the creation of sustainable jobs in rural areas.

In the automotive sector, bast fibres such as flax, hemp and kenaf, are used to manufacture woven and non-woven composites for auto components such as parcel trays, interior door linings, and automotive panels.

Leaf fibre, which the project will derive from the pineapples that already come into the Coega SEZ for food manufacturing by Dynamic Commodities, as well as cactus species from the nearby Karoo area, will be used to create a plant leather for high-end vehicles.

Further to this, in May 2024, Coega welcomed the R80m Medigrow facility in Zone 3 of the SEZ, which will be used for hemp and indoor medicinal cannabis strains, inclusive of processing and packaging for domestic and export markets.

COEGA SEZ ENERGY PROJECTS INCLUDING GREEN AMMONIA AND SOLAR
ROOFTOP

The Coega SEZ is home to the largest green hydrogen investment of its kind by Hive Hydrogen. The project aims to contribute substantively to energy decarbonisation, with an annual production of +/-900 000 tons of green ammonia providing clean energy for diverse applications, with green hydrogen and ammonia particularly for the decarbonisation of heavy industries and transportation industries.

The signing of the memorandum of cooperation between Hive Hydrogen and Itochu Corporation of Japan, in December 2023, marked a pivotal step in identifying key areas for collaboration, including project financing and off-take for green ammonia.

In partnership with Hive Hydrogen as an investor, Coega is dedicated to exploring and implementing innovative solutions to deliver the project as per targeted timeframes, and contributing to building a greener, more sustainable future for South Africa.

The Coega SEZ’s incentives assist in ensuring that business is established in a customs controlled environment to produce inputs in the green hydrogen production value chain.

In terms of its SEZ Energy Strategy, Coega is implementing the Coega Solar Rooftop Project (CSRP). The CSRP is accelerating Coega’s vision of greening its SEZ and Nelson Mandela Bay Logistics Park (NMBLP) buildings. The initial phase will see the implementation of 4.5MW PV systems on rooftops in five buildings of the Coega SEZ and NMBLP.

The first building, the Coega Business Process Outsourcing (BPO) Park, has been fitted and commissioned, while the roof assessments and designs have been approved for the remaining four buildings.

COEGA AQUACULTURE DEVELOPMENT ZONE

Another milestone for Coega is the development of the Aquaculture Development Zone (ADZ) in Zone 10 of the Coega SEZ. Coega received R206m funding support by the Department of Economic Development, Environment Affairs and Tourism to establish enabling infrastructure (i.e., roads, electrical, potable and storm water infrastructure, etc.) in the SEZ’s ADZ following environmental authorisation.

The infrastructure has created an investment ready platform for aquaculture investors, including abalone and finfish farms. The development is in line with the province’s focus on the Oceans Economy Master Plan. The infrastructure development investment by the province created 500 construction jobs and 900 operational jobs.

COEGA SEZ WATER PROJECTS

The Coega SEZ is recognised by existing and prospective investors for its plug and play infrastructure and its focus on sustainable development. The SEZ recently benefited from a R1.8 bn budget allocation for the Coega Return Effluent (RE) Scheme, an innovative water sustainability initiative.

The construction of the RE Scheme includes infrastructure upgrades in Zones 3, 4, 5 and 6 of the Coega SEZ for wastewater conveyance within, and the construction of a pipeline to convey treated effluent or industrial-quality water from the Fishwater Flats Wastewater Treatment Works to the Coega SEZ.

SKILLS DEVELOPMENT, TRAINING AND YOUTH EMPLOYMENT

Coega remains the only SEZ developer in Africa that has devoted resources to the pursuit of Science, Technology, Engineering and Mathematics (STEM) careers. The Coega Maths and Science Programme is one of Coega’s catalytic Corporate Social Investment (CSI) Programmes, which was established to help matriculants improve their Mathematics and Physical Science results at no cost to learners. The Programme achieved a remarkable 100% pass rate in 2023, following a 100% pass rate in 2022.

The latest Coega SEZ Survey Report published by Statistics South Africa in April 2024, reflected increase in the employment of youth across the SEZ. During the 2023/24 FY, Coega realised positive performance for the number of people trained. A total of 4 374 people were trained, improving their employability and entrepreneurial potential.

Further to this, Coega was also awarded a B-BBEE Level 1 Certificate, underscoring its strong commitment to transformation and empowerment within the South African business landscape. This certification highlights Coega’s ongoing efforts to drive meaningful change in line with the country’s economic empowerment objectives.

SMME DEVELOPMENT ACHIEVEMENT

Based on Coega’s diversification strategy, as an Implementing Agent of Choice in South Africa, Coega has a compulsory corporate target of 33% SMME involvement in all infrastructure projects. To date, Coega has enriched communities and economies through R48.3bn in infrastructure development in South Africa.

Coega’s dedicated SMME Development Programme achieved a total SMME procurement spend of over R1,0bn for 2023/24 FY, which equates to 69.42% of the total spend for the year. Over R500m was spent on black men-owned SMMEs, R364,5m was spent on black women-owned SMMEs, and over R97,9m was spent on black youth-owned SMMEs.

As part of its diversification strategy to generate alternative sources of revenue for sustainability, Coega’s Non-SEZ programme continued to perform well. For innovation and continuous improvement, Coega has continued its proactive development of new markets for growth and sustainability in the continent, as part of the Coega non-SEZ Programme. The Coega Africa Programme (CAP), which is in line with the AfCFTA programme to promote growth, development, and economic integration of the African continent, continues to seek new markets in the continent.

The growth of Coega’s Non-SEZ Programme has continued to surpass all expectations, exceeding an annual target of R3,5bn and achieving R15,5bn in terms of the infrastructure projects order book, mainly from the KwaZulu-Natal Department of Education, National Department of Public Works and Infrastructure, Eastern Cape Department of Health, the South African National Roads Agency (SANRAL) and the Tshwane Automotive SEZ (TASEZ). This was achieved despite the challenges of infrastructure project delays and budget cuts. Coega’s programme has played an important role in deepening state capacity to deliver multibillion-rand infrastructure programmes, as part of the South African Economic Reconstruction and Recovery Plan, South Africa’s National Infrastructure Plan 2050, and National Development Plan (NDP) Vision 2030.

In conclusion, Coega’s strategic approach to development will continue to have a positive effect on the socio-economic development of the region and beyond. The organisation has noted the need for stakeholder collaboration in the provinces where it operates, particularly between various role players in the automotive sector, such as the Automotive Industry Development Centre (AIDC) Eastern Cape and Eastern Cape Development Corporation (ECDC) to attract new Original Equipment Manufacturers (OEMs), especially OEMs that are producing electric vehicles (NEVs).

Supported by government and bolstered by a well-established brand, the Coega SEZ offers a combination of favourable investment conditions, strategic location, and supportive infrastructure, making it an attractive destination for foreign direct investment.

By leveraging the Eastern Cape’s economic strengths in terms of automotive sector concentration, manufacturing, agriculture, and the absorption of local labour, Coega’s investments impact entire value chains and have significant implications for economic growth and job creation in South Africa.

The Coega Development Corporation’s SMME Development Project Co-Ordinator, Ms. Nazlie Allie, writes that in the pursuit of economic development, the empowerment of Small, Micro and Medium Enterprises (SMMEs) stands as a cornerstone for fostering growth, innovation, and sustainability within communities. The Coega Development Corporation (Coega), through its dedicated SMME Development Programme, is emerging as a shining example of success in nurturing and uplifting budding entrepreneurs. With a focus on skills development, capacity building, and fostering business growth, the programme has yielded remarkable achievements that warrant recognition and applause, and is in line with Coega’s vision as a catalyst for championing the socio-economic development.

SMMEs play a crucial role in generating employment opportunities and enhancing livelihoods, particularly among marginalised groups such as the working poor, women, youth, and individuals living with disabilities. As the backbone of local economies, SMMEs drive innovation and economic growth, contributing to reduced income inequality and promoting social cohesion.

The Coega SMME Development Programme has implemented various initiatives to support SMMEs, including the Construction Contracting Skills Programme, which has provided Sector Education and Training Authority (SETA) Accredited Training to 26 individuals and delivered Non-Accredited Training to 124 participants, culminating in a total of 150 skilled individuals entering the construction industry. This investment in training not only enhances the capabilities of aspiring contractors but also contributes to the overall quality and professionalism of the construction sector.

The programme’s emphasis on supporting SMMEs in successfully completing projects is evident in the statistics that 80% of SMMEs awarded contracts have effectively delivered on their work packages. This track record underscores the programme’s commitment to ensuring that SMMEs not only secure opportunities but also excel in executing projects, thereby enhancing their credibility, and fostering long-term sustainability.

Furthermore, the programme has facilitated CIDB upgrades for 81 SMMEs, guiding and supporting these enterprises through the CIDB upgrading process, the programme has empowered them to access higher-value contracts, expand their business operations, and position themselves for growth and success within the construction industry.

To illustrate the transformative impact of the Coega SMME Development Programme, we turn to the inspiring journey of Mantishe Construction, a recipient of the programme in 2009. Under the mentorship and training provided by Coega, Tando Mhlobiso, the owner and manager of Mantishe Construction, steered the company towards sustainability and growth. Over the span of 16 years, Mhlobiso expanded his business empire to establish five sister companies under the Mhlobiso Group umbrella, creating employment opportunities for 150 individuals.

In a remarkable progression, Mhlobiso Concrete, a subsidiary of Mhlobiso Group, became an investor in Zone 5 of the Coega Special Economic Zone (SEZ) in 2022, thus contributing to the economic vibrancy of the region. By creating 15 permanent jobs and expressing intentions for future expansion, Mhlobiso Concrete exemplifies the transformative power of SMME development initiatives in driving economic progress and creating sustainable livelihoods.

The success story of Mantishe Construction and the impactful outcomes achieved through the Coega SMME Development Programme underscore the vital importance of investing in the growth and empowerment of small businesses. As we celebrate these achievements, it is imperative to continue supporting and nurturing SMMEs, as they represent the bedrock of economic development and prosperity for communities and nations at large.

Coega’s commitment to transformation has also seen the launch and execution of Coega’s BEE Scorecard Improvement Programme (BEESIP), which assists 100% black-owned and black women-owned enterprises to improve their B-BBEE status levels. Over the past two years, 600 black companies have benefitted from this Programme, enabling the SMMEs to compete against bigger, better resourced, and more established companies when bidding for public and private sector contracts, boosting their chances of getting work.

As we celebrate International SMME Day, Coega reaffirms its dedication to empowering SMMEs, recognising their pivotal role in driving economic growth, innovation, and sustainability. By continuing to support and nurture small businesses, we can collectively create a more prosperous and inclusive economic future.

As we commemorate Youth Month in South Africa, Ms. Phozisa Manakaza, a young professional from the Coega Development Corporation’s (Coega) Sustainability Business Unit, writes that it is imperative to highlight the crucial role that young individuals play in propelling innovation and sustainable development within the realm of the Just Energy Transition (JET). Nationally, the transition is anchored in South Africa’s commitment to contributing to global climate change mitigation goals and is framed by the country’s Cabinet-endorsed JET Framework and Investment Plan that is driven by the Presidential Climate Change Commission.

The JET represents a multifaceted economic metamorphosis that necessitates flexible mindsets, technological advancements, and the empowerment of youth. By engaging young professionals in decision-making processes and fostering skills development initiatives, we can unleash their potential to shape a sustainable future.

The success of the JET hinges on progressing towards technological innovation and initiatives. To ensure the sustainability of this transition, it is essential to focus on empowering, upskilling, and capacitating South Africa’s youth. Young professionals bring fresh perspectives to decision-making and strategic planning, exploring alternative technologies that hold promise for a greener tomorrow. Involving the youth in the energy transition is synonymous with crafting a sustainable legacy for forthcoming generations.

Traditionally, young people have often been sidelined from decision-making arenas within the energy sector, despite their active engagement within their communities and their drive to advance the 2030 Agenda. The Just Energy Transition Skills Development Programme serves as a conduit to bridge the skills gap, offering the opportunity to introduce “green” jobs in the energy sphere. This programme transcends mere awarenessraising; it empowers young individuals to wield a substantial influence and drive change.

Embracing diverse voices and perspectives is paramount in decolonizing knowledge and fostering inclusivity.

Women, as visionaries and nurturers, play a pivotal role in the JET. Shifting from conventional leadership paradigms to more inclusive and innovative styles is crucial for the successful implementation of the JET. Women bring forth leadership approaches that prioritise capacity building, talent identification, empowerment, and support – all of which are indispensable for realising the objectives of the transition.

JET Skills Development programmes establish Think Tanks that convene experts from various political, economic, and technological backgrounds to foster collaboration, creativity, and knowledge-sharing. These platforms serve as incubators for novel ideas, solutions, and strategies that can accelerate the transition towards a sustainable energy landscape.

In conclusion, as we celebrate the energy, creativity, and potential of youth during Youth Month, let us underscore the pivotal role that young people play in driving the Just Energy Transition. Empowering youth, promoting inclusivity, and fostering innovation are fundamental pillars for steering our society towards a more sustainable and equitable future. By investing in the capabilities and aspirations of our youth, we are investing in a brighter tomorrow for all.

The Coega Development Corporation (Coega) wishes to extend a congratulatory message to Ms. Batandwa Damoyi, for her appointment as the Chief Financial Officer (CFO) of the Public Investment Corporation (PIC). As a qualified Chartered Accountant and an experienced business executive with 17 years’ experience post articles in corporate finance, she has demonstrated passion about corporate governance, unwavering commitment to ethics and integrity, and has provided oversight in the improvement of Coega’s financial controls, which has led to the organisation achieving a “Clean Audit” by the Auditor-General of South Africa (AGSA) for four consecutive years.

It is for this reason that Ms. Damoyi has regrettably decided to resign from the role of Coega Development Corporation Board Chairperson, and as a Member of the Board and the Board Sub-Committees, effective 13 June 2024. Ms. Damoyi has expressed her desire to focus on her new responsibilities at the PIC; however, she has committed to carry the Eastern Cape Provincial Government and Coega with great pride and will continue to be an advocate for growth and development for the province. Ms. Damoyi was appointed as a Non-Executive Director in 2019, as Board Chairperson in 2023, and celebrated as the first black female Chairperson since Coega’s establishment in 1999.

Coega wishes Ms. Damoyi the best on her new journey and looking forward to seeing her accomplishments at the PIC.

In the intervening period, Dr. Luvuyo Bono has been appointed as the Interim Chairperson of the Board of Directors. Dr. Bono was appointed by the shareholder, MEC for the Department of Economic Development, Environmental Affairs, and Tourism (DEDEAT), Honourable Mlungisi Mvoko, as the Coega Development Corporation Board member in March 2024, and as Interim Board Chairperson on 13 June 2024. Dr. Bono is an experienced advocate and fit for the role. He holds a Doctor of Laws degree from the Nelson Mandela University. He is currently in active practice as an admitted Advocate of the High Court registered with the Legal Practice Council. He is also an Associate of the Labour and Social Security Law Unit at the Nelson Mandela University (NMU), Labour Law Lecturer, and a part-time Senior Commissioner for the Commission for Conciliation, Mediation and Arbitration (CCMA). Dr. Bono was awarded the status of “Adjunct Professorship in Labour Law” by NMU. In 2023, Dr. Bono was appointed as a member of the Rules Board of the Labour Court and Labour Appeal Court.

The Coega Development Corporation has full confidence in the Interim Board Chairperson, Dr. Bono, as the organisation continues to operate and provide a quality service to its investors and clients, the achievement of its strategic objectives and targeted outcomes for the 2024/25 Financial Year and maintaining good governance.