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2024 Exporter of the Year Awards officially launched

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Since the sweet success of Cadbury’s winning the very first Exporter of the Year Award in 1995 at City Hall, many more captains of industry have had the privilege to be awarded this prestigious title.

Now in its 30 th year, Exporters Eastern Cape’s 2024 Exporter of the Year Awards was launched in Gqeberha on Thursday [18 April] at the Tramways Building, which will be the new venue for the gala event taking place on October 11.

“The Exporter of the Year Awards has been hosted since 1995 to acknowledge the achievements of the province’s exporters and related industries. Despite the economic climate, it offers us an opportunity to celebrate our export victories and encourage others in the industry to keep going,” said Exporters Eastern Cape Chairman Quintin Levey.

During the launch event, which was attended by strategic partners from the Border-Kei Chamber of Business Executive Director Lizelle Maurice and the Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen, Levey also shared the new strategic direction of Exporters Eastern Cape with a sectoral focus on the automotive, wool and mohair, citrus, logistics, maritime and emerging industries. The revised strategy is aimed at maximising the value proposition for members and sponsors, through facilitating conversations, growing the number of exporters in the Eastern Cape, and assisting exporters become globally competitive.

On the judging panel for the 2024 Awards is the IDC’s Regional Manager Kingsley Dell-Robertson, who said the Exporter of the Year Awards offers the opportunity for customers to see the performance of the exporters and “to stay with you because you are a winner”.

Another one of the judges, Managing Director of Randall Jonas Consulting (Pty), Dr Randall Jonas, said sifting through each entry can take between 5 to 6 hours individually before deliberating as a group of judges until the category winners are decided. Key focus areas that he looks at for entries are innovation and sustainability.

Winning the coveted title of Exporter of the Year three times – including 2023 – is an incredible feeling that never gets old, according to S4 Marketing Manager Gideon Smith.

“It is one of the best feelings in the world to walk up to the stage and collect the award. It is the validation and recognition of countless hours of work. The boost in the staff morale is fantastic, as well as all the exposure and publicity you get from the award. There is so much credibility and merit behind this award, especially to be recognised by industry,” said Smith.

Standard Bank will be the Platinum Sponsor for the awards evening and was also a sponsor of the launch event, along with other sponsors on the night being The Herald, SJM Flex, BLG Logistics, LX Events, and S4.

There are several categories in which companies can enter in 2024. These include: SJM Flex Environmental Award; SJM Flex Environmental Practice Award; IDC Job Creation Award; Best Provider of Services to Exporters; Emerging Exporter Award; Best Exporter: Small Business; Best Exporter: Medium Enterprises; Best Exporter: Corporate Category; and Best Exporter: OEM. The Overall Exporter of the Year for 2024 will be chosen from the category winners.

The winner of the Emerging Exporter Award will this year also battle it out with other entrants during a ‘Dragon’s Den’ with guest “dragons”.

The closing date to enter the 2024 Exporters of the Year Awards is 19 July 2024. For more information on how to enter or to attend the event, please contact Exporters EC Branch Manager, Suzanne Loubser at info@exportersec.co.za or Exporters Chairman, Quintin Levey at quintin.levey@kpmg.co.za

2024 Exporter of the Year Launch
Pictured during the launch of the Exporter of the Year 2024 Awards were from left Quintin Levey (Exporters Eastern Cape Chairman), Leigh-Anne de Witt (Standard Bank Eastern Cape Head of Client Coverage, Business Clients), Deon Joubert (Exporters Eastern Cape Vice-Chair) and Nyameko Lusu (Standard Bank Eastern Cape Corporate and Investment Banking, Global Markets Regional Sales Manager).

Help support IRONMAN 4 The Kidz Charity through the 1% Challenge

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GQEBERHA – ISUZU Motors South Africa, as the title sponsor of IRONMAN South Africa, takes immense pride in championing a diverse and accomplished assembly of athletes and individuals participating in the forthcoming IRONMAN event on 19 November.

The Nelson Mandela Bay leg of the competition kicks off a rigorous series of IRONMAN challenges to be held in Durban and Mossel Bay during the year.

Ziphindiwe Ngcobo, Department Executive: Marketing at ISUZU, conveyed her excitement about the brand’s participation in the 2024 IRONMAN African Championships: “Having maintained this partnership for the past 16 years, we are thrilled to be part of this exciting event, which is on our home turf. Both the IRONMAN and ISUZU brands embody the spirit of being BOLD BEYOND HUMAN, recognising the resilience of everyday individuals who courageously push their limits to tackle such a significant physical and mental challenge.”

1% Challenge

At this year’s African Championships, ISUZU and the ISUZU Foundation are calling all of Mzansi to help raise R15,800 through its 1% Challenge.

Anyone can participate by taking on the challenge either at home, in the gym, or online by completing a 38-meter swim, a 1.8-kilometer static Watt bike ride, followed by a 422-meter treadmill run.

To participate, follow ISUZU Motors South Africa on its social media pages, record your participation in the 1% Challenge, post it on social media using the following hashtags to help give back:

#ISUZUIM703NelsonMandelaBay and
#BoldBeyondHuman
#GoXTRA

Spectators at the event can also enter and do their bit for the 1% Challenge at the event by visiting Boardwalk Mall between 18-20 April.

ISUZU is calling on a total of 1, 580 participants who will complete the challenge either at the activation stand, at the gym or at home.

“As a brand dedicated to the communities we serve, ISUZU is committed to giving back and making a difference. The IRONMAN African Championships competition serves as an excellent platform to engage with the local community and inspire individuals to embrace a healthier and more active lifestyle,” says Ngcobo.

Monies raised through the ISUZU 1% Challenge will benefit IRONMAN 4 The Kidz charity, a registered non-profit organisation helping over 20 children’s charities throughout South Africa.

Bold Humans

Among its sponsored participants are a mixture of ISUZU dealers, loyal customers, and esteemed athletes, including South Africa’s renowned triathlon and multisport athletes club, ATC Multisport, led by Head Coach Steve Atwell.

Steve Atwell is a certified Level 2 Triathlon coach accredited by TSA and ASA. He is the Chairman of ATC Multisport, South Africa’s largest multisport club known for nurturing beginners and elite athletes alike. He founded ‘Embark Tri’ in 2010 to mentor novice athletes.

“Our diverse sponsorship lineup exemplifies ISUZU’s commitment to supporting both professional athletes and local heroes as they take on the ultimate test of endurance. We believe that these participants embody the enduring spirit of ISUZU and the indomitable strength it represents,” ends Ngcobo.

Minister Patel welcomes VW’s R4 billion investment in SA

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Volkswagen Group Africa’s (VGA) investment of R4 billion in their assembly plant in Kariega, in the Eastern Cape, has been welcomed by Trade, Industry and Competition Minister, Ebrahim Patel.

The investment will introduce a new SUV model built on the Polo platform.

The move also positions the facility as the sole manufacturer of the Polo brand globally and the new SUV model will be exported to global markets.

Patel addressed the public announcement on Wednesday held at VWSA’s facility in Kariega.

He said the investment was a testament to the country’s industrial policy, and it will not only strengthen the assembly plant but also secure the livelihoods of approximately 3 500 people who are directly employed by VWSA.

“Moreover, this investment has rippled through this part of the Eastern Cape, fostering an ecosystem of prosperity and industrialisation, supporting an estimated 50 000 indirect jobs and livelihoods.”

In the last five years, the department said government has undertaken significant work to bolster automotive production in South Africa.

Patel highlighted 10 actions, which have been taken in the sixth administration to support the industry:

  • New Automotive Masterplan crafted together with the industry was implemented in July 2021, setting the policy framework for the next decade.
  • The African Continental Free Trade Agreement (AfCFTA) has concluded modalities, including rules of origin for a first list of auto products, opening up a vast market.
  • A free-trade agreement with the United Kingdom after Brexit was concluded and implemented, which enabled South Africa to retain access to preferential terms in the United Kingdom market.
  • The establishment of the R6 billion Auto Industry Transformation Fund, which VWSA and other Original Equipment Manufacturers (OEMs) contribute to bringing Black component manufacturers into the supply chain.
  • A major agreement with tier 1 auto component manufacturers has been concluded that will ensure greater opportunities for Black manufacturers in tier 2 or tier 3 levels.
  • R50 billion in investment commitments in the auto sector have been secured.
  • A landmark agreement with Stellantis for the construction of a new R3 billion plant in the Coega Special Economic Zone has been reached.
  • Semi-knocked down (SKD) production by BAIC, also in the Coega Special Economic Zone, has commenced as a first phase toward more value-additive complete knocked down (CKD) production.
  • A new Tshwane Automotive Special Economic Zone has been established, with 10 factories for Ford suppliers already built by March 2024, employing 3 300 workers.
  • The Electric Vehicle Policy was finalised by the Department of Trade, Industry and Competition (dtic), and a new incentive package to assist the transition was announced by the Minister of Finance in the 2024 Budget.

According to the department, the automotive industry plays a crucial role in our economy, contributing significantly to gross domestic product (GDP) and employment.

The manufacturing component of the auto industry contributed 2.9% of South Africa’s GDP in 2022.

With over 115 000 direct employees and an additional 240 000 indirect jobs, the department said the auto industry remains a cornerstone of South Africa’s manufacturing sector.

“Despite global challenges such as the COVID-19 pandemic and supply chain disruptions, South Africa’s automotive industry has continued to grow.”

Over the past five calendar years, South African OEMs produced 2.7 million vehicles and exported 1.7 million vehicles.

In 2023, South Africa exported a record 399 594 vehicles, a milestone for its industrial resilience and global competitiveness.

Notably, last year, South Africa exported its six millionth vehicle since the start of the democratic era. – SAnews.gov.za

Premier and MEC Open R106 Million Tyali Senior Secondary School in the Eastern Cape

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On Thursday, 18 April 2024, the Coega Development Corporation (Coega) joined the Honourable Premier Lubabalo Oscar Mabuyane and the Honourable MEC for Education, Mr. Fundile Gade, for the official handover of the R106 million Tyali Senior Secondary School (SSS) in KwaMaxhama, Kentani, in the Eastern Cape Province.

Honourable Premier Mabuyane described the school as a prime example of community development: “The construction of the school gave builders an opportunity to showcase their skills. Tyali is a good example of a school that does things the right way. Educated people can find good jobs and ensure brighter futures.”

The Tyali SSS, which falls under the Eastern Cape Province Department’s School Building Programme, underscores Coega’s commitment to advancing educational infrastructure within the Amathole District Municipality and beyond.

The Eastern Cape MEC for Education, Honourable Fundile Gade, emphasised the vital role that educational facilities continue to play in shaping the future of communities. Coega serves as an Implementing Agent (IA) of Choice on an assortment of school projects, including new schools, improvements, and additions to existing schools, as well as repairs and renovations to various schools, in alignment with the United Nations Sustainable Development (SDG) Goal 4, the National Development Plan Vision 2030 and the National Infrastructure Plan 2050.

Tyali SSS Principal, Mr. Phakamile Sondawo, expressed his pride in the school’s vision of providing students with opportunities to become productive, responsible, and competitive citizens through an inclusive, quality basic education system.
The project stands as a testament to Coega’s commitment to advancing education infrastructure across the region. The completed Tyali SSS project encompasses a comprehensive array of facilities, including an administrative block, a dining and nutrition centre, science and computer labs, and a variety of classrooms. Other additions to the school include multi-purpose classrooms, new toilet blocks, fencing and gate house, and various environmental features.

The construction of the school significantly contributed to the growth of local small, medium, and micro-sized enterprises (SMMEs), creating 84 jobs and 24.60% of the project’s funding directed towards SMMEs. This exemplifies Coega’s commitment to holistic educational development, focusing on socio-economic upliftment and job creation.

In addition, the project entails essential electrical installations and associated site works, such as rainwater tanks, water, sewerage, and stormwater reticulation. The demolition of existing timber structures further underscores the commitment to modernising educational infrastructure, eradicating structures built of inappropriate material in line with the applicable norms and standards and contemporary practices.

Coega Executive Manager for Infrastructure Planning and Development, Dr. Mpumi Mabula shared Coega’s role as IA on infrastructure projects: “Coega takes immense pride in the impactful work we undertake as the trusted implementing agent, enriching the lives of learners and contributing to the broader landscape of access to quality education. This project stands as a testament to our commitment to advancing educational infrastructure and cultivating environments conducive to learning in line with Coega’s vision of being a leading catalyst for championing of socio-economic development.

“The execution framework, including initiation, planning, execution, monitoring, and control, reflects our dedication to excellence in various aspects of project management. We ensure that every project we embark upon leaves a lasting and positive impact on the communities we serve,” added Mabula.

The opening of the school marks a significant milestone in Coega’s ongoing collaboration with the Eastern Cape Department of Education. By providing state-of-the-art educational facilities, Coega continues to play a pivotal role in driving socio-economic development and building a more prosperous future for South Africa.

Fikile Majola’s visit to Coega SEZ to Assess Progress on the Orion Engineered Carbons (OEC) Tank Farm Project

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Economic Development, Environmental Affairs and Tourism, Honourable Mlungisi Mvoko, visited the Coega Development Corporation (Coega) in Gqeberha yesterday. The purpose of their visit was to assess the progress and readiness of the Orion Engineered Carbons (OEC) Tank Farm Project in Zone 7 of the Coega Special Economic Zone (SEZ). The site visit included a tour of the Coega SEZ Aquaculture Development Zone (ADZ) in Zone 10.

The OEC Oil Tank Farm Project 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. In addition, 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. An oil ship carrying 26,000 tons of black oil, equivalent to 26 million litres, arrived at the Port of Port Elizabeth last week, before proceeding to the Port of Ngqura for the hot commissioning of the OEC Tank Farm Project.

The OEC heavy fuel oil storage facility is nearing operationalisation. Because of OEC’s strategic position in the value chain, the project’s progress since its sod-turning on 22 April 2022, was closely inspected by the Honourable Deputy Minister of the dtic and the DEDEAT MEC, who were impressed by the progress that has been made so far. Had it not been for the interventions of the dtic, the Eastern Cape Provincial Government, and the collaboration and support of the parties involved, the region would have lost a project of economic value in 2022, leading to significant job losses. Coega, through support from the Department of Trade Industry and Competition, worked together with Orion Engineered Carbons South Africa (OEC SA) and Transnet National Ports Authority (TNPA) to provide OEC SA with a solution that was meant to keep its business sustainable. The solution saved approximately 7000 jobs in the automotive and tyre manufacturing industry. Moreover, saving the OEC in the province aligned very well with Coega’s vision of being the leading catalyst for championing of the socio-economic development, and broader government objectives as set out in the Economic Reconstruction and Recovery Plan (ERRP) and other government Policy Prescripts.

Deputy Minister Majola said “the project is very critical in the automotive sector, since OEC plays a vital role in the value chain.” That is why it was important for the dtic to fund the project to the tune of approximately R272 million. To date, 267 jobs have been created since construction started.

“The choice to move the OEC tanks and activities to the Coega SEZ precinct makes it abundantly evident how important SEZs are to the development of global value chains, especially in the manufacturing and automotive industries. The SEZ Programme is still a crucial component of the South African government’s efforts to draw in strategic direct investments that could provide the economy the boost it needs to resume sustained growth and development,” added Majola.

MEC Mvoko expressed his satisfaction with the development of both the OEC Tank Farm and the ADZ: “The ADZ infrastructure development was completed within budget and now the site is ready. Furthermore, when the dtic assisted with the OEC Project, we were thankful. We are hopeful that the OEC Project will live up to the gesture made by the dtic.”

These state-of-the-art OEC tanks were specifically designed to store carbon black feedstock oil, which is a crucial ingredient in the production of tyres and various high- performance applications. “Once operational, the OEC Oil Tank Farm Project will stimulate the entire value chain of the automotive sector,” said Coega Programme Manager, Ms. Maria van Zyl. OEC is a leading worldwide supplier of carbon black, which is a material with many industrial applications including the production of rubber tyres, inks, dyes, coatings, batteries, plastics, paints, and other applications. OEC imports raw materials from the United States of America, conducts high-value manufacturing in Nelson Mandela Bay, and exports high-grade carbon black.

Ms. Nomfundo Faltein, OEC Managing Director, expressed the company’s appreciation with the project’s progress and support from stakeholders involved. “On behalf of Orion, we would like to thank Coega through the support of the dtic and everyone involved in this project. The continued existence of Orion in South Africa supplying the rubber industries with carbon black, as well as maintaining the jobs in the supply chain, depend on this project,” said Faltein.

Furthermore, the visit by the Honourable Deputy Minister Majola also provided an opportunity to showcase the Coega ADZ, which received a substantial investment of R206 million from the Eastern Cape Provincial Economic Stimulus Fund for the development of enabling infrastructure, including road networks, stormwater and water reticulation systems, and electrical networks. As a result, the Coega ADZ has become an extremely attractive investment location for potential stakeholders.

During the site tour, Honourable Deputy Minister Majola and Honourable MEC Mvoko had the opportunity to witness the immense potential for growth and economic development in both the OEC Tank Farm Project and the Coega ADZ. Their visit underscored government’s steadfast commitment to supporting these ventures, which are vital for job creation, innovation, and prosperity in the Eastern Cape.

The visit served as a valuable affirmation of the progress made by Coega and its commitment to fostering economic growth. Moreover, Coega’s achievements signifies that the SEZ programme is delivering on its objectives of socio-economic development.

Boardwalk and EC Gambling Board join forces to guide learners on career paths

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In a display of community collaboration, almost 1 000 learners from 19 schools in Nelson Mandela Bay were this week provided with invaluable insights into their futures thanks to the Boardwalk Hotel and Casino Career Expo.

The event, in partnership with the Eastern Cape Gambling Board, served as an opportunity for Grade 11 and 12 learners from underprivileged backgrounds to be exposed to a diverse array of career options, and afforded the chance to connect with 25 exhibitors, from prospective sponsors, employers, educational institutions, to professionals from various industries such as hospitality, banking, retail and healthcare.

Boardwalk’s General Manager, Tati Tsunke emphasised the broader spectrum of career opportunities available within Sun International, extending beyond traditional roles in hospitality to areas such as HR, legal, IT, gaming/casino management, and finance. “Our aim is to not only educate and support youth as they embark on their career journeys, but also to highlight the various job possibilities within the economy,” .

The event’s keynote speaker, Senior Director: Supply Chain Management at the Nelson Mandela Bay Municipality, Dr Ntomboxolo Ngxesha, inspired learners with a powerful message of self-discovery and ambition. “I see myself in each of you, having once walked the same halls and faced similar challenges. If I could achieve my dreams, so can you,” she affirmed, encouraging learners to embrace their potential.

Beyond enriching sessions and networking, learners were given gifts and vouchers from generous exhibitors including Woolworths and Nyosi Wildlife Reserve. “These tokens will not only provide valuable experiences but also afford glimpses into the diverse career landscapes awaiting exploration,” said Boardwalk HR Manager, Nopinkie Timba.

In a digital age fraught with challenges, over 950 learners pledged to safeguard their online presence under the guidance of Nelson Mandela University Professor Noluxolo Gcaza, and founder of the Cyberculture Foundation. Addressing the importance of maintaining a positive digital footprint, Gcaza emphasised that “the internet never forgets”.

Recognising the formidable obstacles faced by today’s youth, Boardwalk remains steadfast in its commitment to effecting positive social and economic change. “Supporting education is one of Sun International’s socio-economic development focus areas, and through events such as the Career Expo, Boardwalk reaffirms our dedication to fostering a brighter future for all,” Tsunke said.

Boardwalk Career Expo
Learners Sesihle Adonis, Alexis Rowe, Nopinkie Timba (Boardwalk HR Manager), Likhona Byumani and Obumnandi Screech.

Historic MOU to Advance and Support the Bay’s Components Industry

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The Nelson Mandela Bay Business Chamber and NAACAM have signed a historic memorandum of understanding (MOU) to advance and support the automotive components industry in Nelson Mandela Bay, through advocacy and lobbying initiatives, and to develop initiatives that support their respective member’s mandates and strategic objectives. 

Both parties have agreed to collaborate on key projects and initiatives focusing on logistics; electricity reliability, critical infrastructure, information sharing, South Africa’s transition to new energy vehicles (NEVs) and stakeholder management.

NAACAM will participate in the Chamber’s Local Economy Reinvention Think Tank to collaborate with various engineers and innovators from a range of different companies and stakeholders. These efforts are directed at identifying opportunities across six different workstreams to retain and grow investment and employment within the local manufacturing sector.  

The focus on logistics will see both parties jointly work in building a stronger component industry participation in developing and supporting initiatives to improve port, rail and road infrastructure and efficiencies across key logistics nodes. This will also involve promoting the revival of the North-South Rail Corridor in order to improve logistics efficiencies in ferrying cargo between the Bay’s two ports and Gauteng.

They will also collaborate and work jointly to support initiatives on future growth trends impacting the automotive sector including those of new energy vehicles and green-hydrogen based applications.  

A key component involves deep information sharing between the parties to ensure a flow of information and relevant data that can be utilised and leveraged in the best interests of the automotive component industry, including appraising one another of developments impacting upon the sector, NAACAM chief executive officer Renai Moothilal said.

“With the automotive manufacturing sector globally now focused on transitioning to new energy vehicle production, the partnership seeks to jointly promote and advocate for a sustainable transition to NEVs production whilst ensuring producers who have typically been anchored in internal combustion type products are supported with a clear, decisive and a predictable policy environment which prioritises the value coming out of automotive components manufacturers,” Moothilal said. 

The partnership will place a strong emphasis on stakeholder engagement by developing a robust engagement strategy to lobby and drive public advocacy and strengthen partnerships with key stakeholders, including collaborating and supporting thought leadership platforms or events that showcase and celebrate the automotive component industry in South Africa.

Business Chamber Chief Executive Denise van Huyssteen said that almost half of the country’s automotive supply chain production emanated from the Eastern Cape, and most of is located in Nelson Mandela Bay, making the Metro a strategic automotive hub in the country. As such, most businesses in the region whether directly automotive related or not, benefit directly or indirectly from the automotive sector. 

“The signing of this MOU underpins the importance of collaboration between both parties to advance our goal of providing a strategic direction in furthering the growth of the components sector in order to position it for the major changes being introduced from global markets in order to project jobs and retain investment. This is critically important as our metro’s economy is centered around manufacturing, and the logistics sector which represents one of the highest cost areas for business,” Van Huyssteen said.  

The Eastern Cape accounts for more than 53% of South African produced vehicles which are exported globally. This makes the region a major player in the vehicle manufacturing sector and as such, this partnership will help solidify its position through targeted and strategic interventions towards positively impacting the localisation, transformation and supplier development environment in South Africa, in tandem with its support for future investments in the local economy. 

“By working together the Chamber and Nacaam will leverage their strengths in support of a unified vision. It becomes more important for all relevant stakeholders to collaborate in decision making especially in the current economic environment to find suitable solutions to protect investments and jobs. Furthermore, this also allows for all concerned to find innovative ways of repositioning the sector to become more agile and competitive,” Van Huyssteen said. 

MOU signing between Chamber and Naacam
Renai Moothilal (NAACAM chief executive officer) and Denise van Huyssteen (Chamber chief executive officer) have signed an MOU to advance and support Bay’s components Industry.

VWGA Affirms Commitment to Kariega with R4 Billion Investment

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Kariega – Today, Volkswagen Group Africa announced a R4 billion investment in its manufacturing plant in Kariega.

The investment will be used to upgrade facilities in various areas in preparation for the addition of a third model to its production line-up from 2027.

Most of the R4 billion investment will be allocated to capital expenditure for production facilities, manufacturing tooling, local content tooling and quality assurance. Nearly R877 million will be spent to enhance automation in the Body Shop. In the Press Shop, an estimated R418 million will be utilised to procure new press tooling. The first phase of the plant facility upgrade will begin at the end of 2024 during the plant shutdown.

Martina Biene, Chairperson and Managing Director of Volkswagen Group Africa, said the investment announcement reaffirms Volkswagen Group’s commitment to South Africa, where it has been manufacturing vehicles for nearly 73 years.

“Plant Kariega is an important manufacturing plant within the Volkswagen Group production network. Since 2011, Volkswagen has invested R10,28 billion in production facilities, manufacturing equipment, local content tooling and training of people. The new investment is a vote of confidence in the future of the plant. It also futureproofs jobs, not only for our people but also those employed in our supplier network,” explained Biene.

The third model, which will be a SUV, will be manufactured on the same production line as the Polo and Polo Vivo. The Polo and Vivo models are currently the top selling passenger models for the Volkswagen Passenger Cars Brand in South Africa.

The changes being made in preparation for the production of the new SUV also affords training and upskilling opportunities for Volkswagen Group Africa’s production employees.

Localisation remains a key priority for Volkswagen Group Africa. Polo and Vivo currently have 46% and 58% local content levels respectively. The trend is set to continue with the new model, which aims to achieve approximately 40% local content through a R1,2 billion investment.

Volkswagen Brazil is leading the design and development of the new SUV. Volkswagen Group Africa’s Engineering team has collaborated with Volkswagen Brazil for the adaptation of the new model to the local and continental requirements, that for example includes the development of a right-hand drive version.

Biene added: “South Africa is an important market for the Volkswagen Group, particularly in terms of our long-term goal to establish our footprint on the African continent, which is seen as the last frontier for automotive development. As such, we have recently renamed our local company to Volkswagen Group Africa, to represent our steering responsibilities and ambitions to grow the Volkswagen brand on the continent. The new model has the potential to be sold in other African markets where Volkswagen has a presence.”

Biene further added: “As most global vehicle markets transition to electric vehicles, African markets like South Africa will continue manufacturing and selling vehicles with internal combustion engines (ICEs) for the foreseeable future, owing to customer demand for ICEs and slow introduction of electric vehicles in these markets. However, for the Volkswagen Brand the electrification journey begins this year with the introduction of our ID.4 test fleet in South Africa and Rwanda.”

Volkswagen Group Africa
Nelson Mandela Bay Mayor Gary van Niekerk; German Ambassador to South Africa Andreas Peschke; Minister of Trade, Industry and Competition Ebrahim Patel; Volkswagen Group Africa Chairperson and Managing Director Martina Biene; Eastern Cape Premier Lubabalo Mabuyane; Volkswagen Group Africa Production Director Ulrich Schwabe.

Seeking a Multi-user Facility with exemption from loadshedding up to Stage 4?

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Gqeberha, South Africa, 12 April 2024 – The Coega Development Corporation’s (Coega) expanding Multi-User Facility continues to serve as a prime location for small to large companies looking for ideal office space in a plug-and-play industrial zone. Strategically located in Zone 3 of the Coega Special Economic Zone (SEZ), Coega’s Multi-User Facility is home to an array of companies representing six of the SEZ’s 14 focus sectors, including logistics, energy, and automotive. “The Natural Fibre Hub has benefitted greatly from the factory-ready space of the Multi-User Facility. It has enabled us to move quickly to capture an opportunity when the equipment we needed became available at very short notice,” says tenant and Natural Fibre Hub Manager, Mr. Andy Radford.

The Multi-User Facility is currently home to an impressive array of tenants, with newly announced investor, Stellantis, set to occupy an office at the facility ahead of the construction of their R3bn Auto Manufacturing Plant in Zone 2 of the Coega SEZ. Multi- user tenants include African loop Solutions, Himoinsa SA, Ocean Legacy Marine, Chemchamp Africa (Akula Trading), VSL (auto components), Flow Cultivate, Romark Logistics, Natural Fibre Hub (joint venture between the CSIR/Coega Biofibre Hub), CNSA Investment (Chinese solar storage), and Vanguard Logistics. Collectively, the Multi-user Facility houses over 60 employees, representing operational jobs.

“The 6 000m2 Multi-user Facility offers cutting-edge ICT infrastructure and world-class boardrooms and offices, facilitating seamless plug-and-play environment experience for tenants. The facility ensures exemption from loadshedding up to stage 4, convenient access to major transport networks, a range of government incentives such as customs duties and VAT suspension, 24-hour security, and accessible business support through the Coega One-Stop-Shop located in Zone 1 of the SEZ,” says Mr. Mandla Maqanda, Coega Facilities Manager.

The Multi-user Facility is also currently the incubator for the biofibre development project between the Council for Scientific and Industrial Research (CSIR) and Coega. The project aims to develop industrial applications for plant-based fibres, supporting the competitiveness of the local automotive sector, and has recently partnered with a leading Italian plant-based leather manufacturer that provides products to leading European auto manufacturers, and to leading luxury fashion brands looking for sustainable leather alternatives.

The Facility also provides a range of invaluable resources and support to Small, Medium, and Micro-sized Enterprises (SMMEs). Through this facility, SMMEs gain cost-effective access to crucial resources, business support in a conducive industrial ecosystem.

With an established track record of facilitating successful ventures, the Multi-user Facility is expected to draw interest from a diverse range of industries and is well- positioned to accommodate the needs of prospective tenants, providing them with access to key markets and enabling them to thrive. Phases 1 and 2 of the Facility are currently occupied, testament to its ideal location and commercial appeal. . Phase 1 was completed in 2017, with Phase 2 reaching completion in May 2020.

“As the Facility continues to expand its offerings and foster collaboration among stakeholders, it will play a pivotal role in driving economic growth and job creation in the region. With four development phases set to create approximately 25,000m2 of space upon completion, the Multi-user Facility remains a driving force for companies seeking to expand their footprint,” concludes Mr. Maqanda.

Coega SEZ Survey Report: Investor Income Surges to R18,9 billion in 2023 from R14,3 billion in 2021

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Gqeberha, South Africa, 11 April 2024 – The Coega Development Corporation (Coega) is the developer and operator of the 9003-hectare Coega Special Economic Zone (SEZ), a preferred investment destination and a leading SEZ in Africa, located in Gqeberha, Eastern Cape province. The SEZ was designated in 2001 to become South Africa’s first industrial development zone. It currently operates in terms of the Special Economic Zone Act of 2014 (Act No. 16 of 2014).

The latest Statistics South Africa (Stats SA) Coega SEZ Survey Report (2023) was released today, 11 April 2024, at the Coega Business Centre in Gqeberha, in the Eastern Cape. Ms. Magama Makgamatho, Coega Chief Knowledge and Digital Officer, accepted the Coega SEZ Report (2023) on behalf of the Coega Development Corporation. “The Coega SEZ Report provides invaluable insight on growth and development, and investor performance which should inform future strategies, operational efficiencies, and expansion plans. Moreover, we are especially pleased about this latest report and hope to continue this partnership and fulfil the terms of the Memorandum of Understanding with Stats SA.”

The Coega SEZ Report (2023) was handed over to Coega by Stats SA’s Deputy Director- General for Statistical Operations and Provincial Coordination, Mr. Ashwell Jenneker. Speaking at the handover ceremony at Coega, Mr. Jenneker was pleased with the investors 100% participation in the Coega SEZ Survey 2023. “We are very satisfied with the fact that all investors responded in this survey and what is clear is that the Coega SEZ project has immensely contributed to development, job creation, and economic growth in the region. He also said that “we too value this partnership, and we will continue using our statistical measurements to give evidenced-based information to support decision making.”

The Coega SEZ is showing consistent growth in both income and capital expenditure and employs more women and youth. The total Coega SEZ investor income was R18,9 billion in 2023 (up from R14,0 billion in 2021); and the total income had an annualised increase of 15,9% between 2021 and 2023, the survey found [manufacturing was R13,8 billion and non-manufacturing, R5,1 billion]. The total income in the Coega SEZ in 2023 was comprised mainly of the ‘sales of goods, services and other income.’ Furthermore, the total expenditure in the Coega SEZ in 2023 was R17,9 billion. The largest contributors to the total expenditure were ‘purchases’, ‘salaries and wages’, and ‘depreciation,’ among others.

The SEZ boast cutting-edge, world-class modern facilities, as part of its value proposition, for automotive metals/metallurgical, automotive, business process outsourcing (BPO), chemicals, agro-processing, logistics, trade solutions, energy, and maritime industries.

The total capital expenditure on new assets in 2023 was R558 million, as compared to R346 million the previous year. This surge translates to an impressive, annualised growth of 27,0%, underscoring the Zone’s robust expansion and commitment to infrastructure development. The largest categories of capital expenditure were ‘capital work in progress’ (R230 million or 41,2%) and ‘plant, machinery, and equipment (R228 million or 40,9%).

The SEZ, which had 43 active tenants in 2023, leverages public-sector investment to attract foreign and domestic direct investment in the manufacturing sector with an export orientation. As mentioned above, the income in the Coega SEZ in 2023 was comprised mainly of ‘sales of goods;’ however, between 2018 and 2023, ‘manufacturing’ contributed the biggest percentage share of income. The SEZ was growing as a manufacturing hub in the region with the survey showing that between 2018 and 2023, ‘manufacturing’ contributed the biggest percentage share of income. Manufacturing contributed 73,2% of the total income of the tenants in 2023, while their contribution to employment (excluding employees employed through labour brokers) was 58,4%. Non-manufacturing contributed 26,8% of total income and 41,6% of employment. This survey results showed that the Coega SEZ continued to demonstrate tangible impact on transformative socio- economic indicators.

Furthermore, in 2023, female representation in the workforce, excluding labour broker employees, stood at 38,4%, indicating significant strides towards gender inclusivity. Notably, the ‘non-manufacturing’ sector boasted the highest proportion of female employees, accounting for 51,6% of its workforce. Moreover, the youth played a substantial role in the Coega SEZ’s employment landscape, constituting 42,7% of the workforce (excluding labour broker employees) in 2023. Once again, the ‘non- manufacturing’ sector emerged as the primary employer of young individuals, showcasing its appeal and opportunities for career entry. These statistics underscore the SEZ’s commitment to fostering diverse and inclusive employment practices, essential for sustainable economic growth and development.

The Report indicates that total employment at the Coega SEZ in 2023 was 8577, up from 8029 in 2021, an annualised growth of 3,4%.

In 2023, the proportion of goods and services exported or sold to domestic exporters was 25,8% of total goods and services sold in the Coega SEZ.

The Coega SEZ Survey Report by Stats SA demonstrates that the country’s SEZ Programme is working.

The Coega SEZ leads and continues to position itself as a key contributor to economic development and growth engine towards government’s strategic objectives of industrialisation, regional development, and employment creation, concludes Dr. Ayanda Vilakazi, Coega’s Head of Marketing, Brand and Communications.