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Gqeberha, South Africa, 1 November 2023 – Africa’s leading Special Economic Zone (SEZ), owned and operated by the Coega Development Corporation, has caught the attention of global investors from the automotive and energy sectors due to its excellent infrastructure and services that enable the advancement of project development and growth for tenants and clients. Supported by a competitive and strategic location, international brand recognition, awards of excellence, well-maintained modern infrastructure, one-stop-shop services, and a business-friendly environment establishing green hydrogen and ammonia production facilities, the Coega SEZ is fast becoming a hub for cutting-edge catalytic industrial projects in the automotive and energy industries, says, Dr. Ayanda Vilakazi, Coega’s Unit Head of Marketing, Brand and Communications.

The automotive industry has a long-standing presence in the Coega SEZ, with leading global manufacturers choosing to invest their world-class facilities and equipment in the Zone, employing thousands of workers. Companies benefit from the SEZ’s access to reliable road, air, and sea transportation networks, including the deepwater port of Ngqura, Port of Port Elizabeth for containers and vehicles, respectively, and an international airport. Linking east and west international trade routes, Coega’s strategic location allows for seamless exports and imports as a gateway to African and world markets, and an ideal industrial business environment for automotive enterprises looking to expand their operations to the African continent, South Africa, in particular.

Located in the Eastern Cape Province of South Africa, positioned as the home of legends, Coega is one of the largest and most well-established SEZs in Southern Africa, with robust infrastructure, attractive incentives for investors, efficient logistical networks, and a complete value chain service offering. The Coega SEZ provides businesses of all sizes and sectors with the essential prerequisites for growth and success. Notably, recent investment activity in the automotive and energy sectors highlight the Coega SEZ as a prime investment location with massive growth potential in terms of business expansion, sector growth, and the development of local value chains.

Feedback from the 2021 Coega SEZ Investor Survey indicates that 91.7% of operational investors stated that their business key performance indicators improved since locating at the Coega SEZ, 92% of operational investors agree that Coega has met its obligations to tenants since locating in the Coega SEZ, and 91.6% of operational investors would encourage other businesses to locate at the Coega SEZ. Additionally, Statistics South Africa (Stats SA), is one of the entities that has continued to measure the economic activity of Coega SEZ investors. Stats SA and Coega have had a partnership since 2017 for the statistical agency to measure investors’ economic activities. Stats SA has produced three reports to-date on the Coega SEZ. The latest report is comprised of the assessment of the economic activities of investors in the Coega SEZ for the financial year 1 July 2020 to 30 June 2021. This report measured income, employment, capital expenditure, and value of imports and exports in the SEZ. The highlights indicated that the Coega SEZ investors made R 14,3 billion in income.

The total income reflected an annualised increase of 9,0% compared to the income reported in the corresponding survey of 2018 (R11,0 billion). In addition, the total Coega SEZ expenditure in 2021 was R13,5 billion compared to R10,8 billion in 2018 (an annualised increase of 7,5%). The largest contributors to the total expenditure were ‘purchases’ (R8,3 billion or 61,9%), and ‘salaries and wages’ (R1,6 billion or 11,9), to name a few, making a significant impact on the local economy. The total number of persons employed in the Coega SEZ as at the end of June 2021 was 8 046 (798 more employees compared to 2018), and the latest 2023 audited results indicate that 9 378 people were employed in the SEZ during the 2022/23 financial year.

In terms of energy, since establishment the Coega SEZ has successfully attracted over R4 billion worth of energy projects that are operational and has also implemented numerous energy projects, including the progressive and innovative Coega Solar Rooftop Project, discussed below. The Coega SEZ is an ideal investment location for green hydrogen projects and has serviced developable land available that is suitable for greenfield projects.

The Coega Solar Rooftop Project, in its initial phase, will fit five buildings within Coega SEZ and the Nelson Mandela Bay Logistics Park (also operated by the Coega Development Corporation) with cumulatively 4.5MW solar PV panels. So far, the first building has been fitted, and the roof assessments and designs have been approved for the remaining four buildings.

Power cuts, or load shedding, has increased in South Africa during the year, posing significant challenges to small businesses – which account for a third of the country’s gross domestic product. However, the recent noticeable improvements on loadshedding have been welcomed.

The Coega SEZ Energy Strategy identifies approaches to managing the energy supply, demand, efficient usage, and investment in current and new energy technologies in a manner that is environmentally friendly, institutionally sound, socially acceptable and cost-effective utilising the best mix of energy supply and demand options.

Coega has implemented short-term interventions including exemption from loadshedding up to stage 4, uninterrupted power supply at its Business Process Outsourcing Park, and a 24-hour load curtailment schedule. Long-term interventions include the development of solar farms in the Coega SEZ, due to land availability, electrical distribution networks, ability to transmit electricity to external customers via a wheeling agreement, and excellent solar and wind resources.

Regarding the auto manufacturing industry, it is one of the strongest sectors of South Africa’s economy, and the country wants to produce 1% of the world’s automobiles. As cities encourage greater use of public transportation to limit emissions from personal vehicles, automobiles will play a large role in how humans move around for the foreseeable future, whether they’re traditional internal combustion engine (ICE) motors or new energy vehicles (NEVs) which are gradually becoming more common and affordable.

The Coega SEZ recently welcomed The Stellantis Group (Middle East and Africa) announcement to locate their R3bn state-of-the-art CKD auto manufacturing plant in the Coega SEZ, in partnership with the Industrial Development Corporation (IDC). This bold initiative reinforces Stellantis MEA Region’s Dare Forward 2030 ambition to sell one million vehicles by 2030 with 70% regional production autonomy.

The Coega SEZ is currently home to various automakers including China’s BAIC and FAW Trucks and component suppliers, including Grupo Antolin, Faurecia Interior Systems, Hella, VSL Manufacturing Benteler Automotive, Inergy Automotive Systems, Rehau Automotive, Q-Plas Automotive, MICB Automotive and Schenellecke Automotive. The Coega SEZ’s offering to the automotive investors includes cost effective comprehensive manufacturing solutions in Zone 1 and 2 of the Coega SEZ and in the Nelson Mandela Bay (Automotive) Logistics Park in Kariega. Plans of developing an automotive components supplier’s park in the Coega SEZ are also underway.

Coega aims to support automotive investors, assemblers, and component suppliers alike with a diverse range of services to allow companies to focus on the core business of manufacturing and distribution. Investors in the Zone will also be linked to government supported initiatives, including the Automotive Production and Development Programme – Phase 2 (APDP – 2); dtic’s corporate tax reduction, the Eastern Cape Tooling Initiative and others supported by Provincial and National Government.

The Coega SEZ leverages innovation, business ecosystems and strategic collaboration to enhance competitiveness and attractiveness, as an investor location of choice for automotive and energy projects, while ensuring that Coega remains relevant to the developmental trajectory of Southern Africa. In our current economic climate, Coega’s accomplishments are noteworthy, and reflect significant growth momentum. Despite various challenges, Coega has successfully attracted investment into the region, demonstrating its potential as a crucial driver of economic development, job creation, and overall economic growth.

The automotive and energy sectors have contributed to the overall performance of the Coega SEZ. As per the recently published Integrated Annual Report in October 2023, the reported number of operational investors stood at 58, including FAW SA, Benteler Automotive and Dedisa Peaking Power Plant, to name a few, concludes Dr. Vilakazi.

The global shift towards clean and renewable energy sources has created a growing demand for sustainable fuel alternatives. Green hydrogen and ammonia are two such alternatives; having gained significant attention in recent years.

Vuyokazi Gwabeni, a Business Development Manager for the Coega Development Corporation, shares her views on establishing green hydrogen and ammonia production facilities, highlighting the potential benefits, and providing examples of the Coega Development Corporation’s initiatives in this field.

Green hydrogen is produced through electrolysis, a process that splits water molecules into hydrogen and oxygen using electricity generated from renewable sources. This form of hydrogen has immense potential as a clean energy carrier since it can be produced with zero carbon emissions. Ammonia, on the other hand, is a hydrogen carrier that can be produced by combining hydrogen with nitrogen, making it a versatile fuel alternative for various industries such as transportation and power generation.

Establishing green hydrogen and ammonia production facilities holds numerous benefits for both the environment and the economy. Firstly, it provides a sustainable solution to reduce carbon emissions, thereby mitigating the impacts of climate change. The utilisation of renewable energy sources for hydrogen and ammonia production ensures that these fuels have a minimal carbon footprint throughout their lifecycle. By adopting these alternatives, countries can significantly reduce their dependence on fossil fuels, and transition to a green and sustainable energy system.

Moreover, this shift towards green hydrogen and ammonia production can also create a plethora of economic opportunities. The establishment of these facilities would lead to job creation, attracting investments, and driving economic growth in the regions where the projects are implemented. In this regard, Coega has a vital role to play in fostering a green hydrogen and ammonia industry in South Africa.

The Coega Special Economic Zone (SEZ) offers several advantages that make it an ideal location for the establishment of green hydrogen and ammonia production facilities including abundant renewable energy resources such as wind and solar, which are vital to produce green hydrogen and ammonia.

When Coega’s business development team began looking into the opportunity of green hydrogen, which was not included in our initial master plan four years ago, we were coincidently working on our re-imagined strategy. Sustainability became the forefront of that Strategy, and the opportunity presented itself when an investor approached us, sparking an interest in our region’s potential as a hub for exporting green ammonia.

We realised that our existing assets and infrastructure, tailored for becoming a transshipment and export hub, could be harnessed to facilitate the green energy revolution for the country as well as for Africa. This was in line with our vision as laid out in the SEZ Act. We were able to identify that the Eastern Cape is an ideal location with the elements required for green hydrogen production. It was a learning curve for us in a sense that we had to work with our partners to enable this opportunity.

Our first task was to assess whether the assets we have could provide the necessary resources for green hydrogen production. The journey started with a feasibility study. We delved into electrolysing technology, understanding the essential elements that would make green hydrogen production feasible in our region. It was not just about the renewable energy resources; it was also about water availability as a critical input. At the time, this took place in the context of a regional drought crisis. Fortunately, the potential for a desalination plant project, a dual-purpose initiative to secure water supply for our SEZ and support the development of the aquaculture development zone was already being investigated. This presented an additional opportunity to leverage the synergies around a salt manufacturing plant that produces a lot of wastewater, which could be cleaned and diverted in the electrolyser.

Our connection to the deepwater Port of Ngqura is a key enabler to ensure that the product reaches its intended market, and the availability of sufficient storage capacity and export infrastructure was a plus for us.

Over and above the physical infrastructure, benefits provided by the SEZ include assistance with incentives and advice on the required Environmental Impact Assessments (EIAs). Our aim was to create an environment that attracts, and facilitates the growth of, green energy projects.

With these pieces in place, the Coega SEZ serves as a crucial export hub for green hydrogen and ammonia in the region. What began as a humble reimagining of our strategy, transformed into a beacon of green energy innovation in the Eastern Cape.
The development of the Eastern Cape Green Hydrogen Strategy will further enhance the opportunity for the region to become an export hub and look at how the localisation of the industry could be achieved for the benefit of economic growth.

The Coega SEZ is a tool to create sustainable and inclusive economic benefits by attracting investments in various sectors, focusing on the localisation of the renewable energy value chain. The Corporation’s commitment to renewable energy is evident in its initiatives, with a recently approved Coega SEZ Energy Strategy that seeks to develop of solar parks and other forms of alternative energy generation methods.

The Coega Development Corporation recognises green hydrogen and ammonia as a promising sector for investment and growth. The Corporation is actively engaging with potential investors and stakeholders to develop projects related to these fuels.

By leveraging its strengths, including its supportive regulatory environment, skilled workforce, and existing infrastructure, the Coega Development Corporation aims to attract partnerships and investments to establish green hydrogen and ammonia production facilities. The Corporation’s strategic location and focus on sustainability make it an ideal partner for companies looking to tap into the green energy market.

Stakeholders in attendance included Theatricks, Reonet Resources by Nature, Canzibe Primary School, the South African National Biodiversity Institute, Standard Bank, the Nelson Mandela Bay Municipality, Department of Public Works and Infrastructure, and the Coega Wellness Centre, to showcase their work across environmental, social, and governance sustainability pillars.

Gqeberha, South Africa, 26 October 2023 – In celebration of Sustainability Day 2023, the Coega Development Corporation (Coega) partnered with like-minded organisations to host its first-ever Sustainability Day Fair. The event, held at the Coega Vulindlela Accommodation and Conference Centre (VACC), showcased Coega’s commitment to promoting sustainable development and advancing the United Nations Sustainable Development Goals (SDGs).

Themed “Driving Change Without Leaving a Negative Footprint,” the event aimed to raise awareness about the importance of sustainable practices and encourage collective action towards a more sustainable future. Led by the Corporation’s Sustainability Business Unit (SBU), the Fair emphasised the need for minimising carbon footprints, adopting zero- waste industrial practices, conserving biodiversity, enhancing climate resilience, and integrating sustainability into business strategies, operations, and infrastructure development.

The Sustainability Day Fair brought together various stakeholders, including industry experts, government representatives, and local communities, all working towards common sustainability goals. Attendees had the opportunity to network and engage in informative discussions to understand the practical aspects of sustainable development.

“The Coega Development Corporation is thrilled to have hosted its first Sustainability Day Fair. This event showcased our dedication to the long-term health and wellbeing of our communities, as well as the planet. It provided a platform for meaningful discussions, collaborations, and knowledge-sharing on sustainable practices, enabling us to better align our efforts with the global sustainability community,” said Ms. Telly Chauke, Coega’s Chief Sustainability Officer.

Sharing the rationale behind the Fair, Ms. Chauke said: “Sustainable development is central to the way we do business. We wanted a day where we could interact with our tenants, partners and stakeholders celebrating what is globally recognised as a drive to develop without leaving a negative footprint. Coega applies a view on the SDGs that clusters them into three pillars, including the economic pillar, social pillar, and environmental pillar. This clustering intimates the relationship between each of the goals and the net result of their targets and environmental impacts.

We aspire to encourage the adoption of environmentally responsible practices and empower all involved to actively contribute to the realisation of a more sustainable and eco-conscious future,” added Chauke.

Ms. Sibahle Gumede, Seed Conservation Technician at SANBI, welcomed the initiative and said: “As SANBI employees, we endorse these types of events. They offer a unique opportunity to educate people about biodiversity and the environment. Coega has granted SANBI permits to collect seeds of indigenous plant species through the Millennium Seed Banking Partnership (MSBP), which is dedicated to conserving South Africa’s diverse flora through seed banking. The seeds collected from Coega are safeguarded in our seed bank, serving as an insurance policy for potential future disasters. If the need arises to restore, rehabilitate, or reintroduce species that were once found in Coega, this partnership between Coega and SANBI will play a crucial role in bringing the land back to life.”

Through this initiative, Coega aims to position itself as a leader in sustainable development, both locally and internationally. By promoting sustainability as a core principle, the Corporation is committed to creating a greener future, while contributing to economic growth and social wellbeing.

Additionally, the Coega Sustainability Day Fair embodied the spirit of giving back in support of SDG 1; No Poverty and SDG 2; Zero Hunger by collecting donations in the form of clothing, blankets, school shoes, sanitary towels, toiletries, and non-perishable food for local communities.

Coega’s approach to industrial development is anchored in a view that the natural environment 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, among other key organisational outcomes. The Coega SBU has articulated a comprehensive set of sustainability objectives including climate resilient infrastructure, low carbon emissions, green and circular economies, global citizenship, thriving communities, ESG advisory, ecological footprint minimisation, social justice, inclusive economy, quality and records management, ISO compliance, and business continuity.

“Coega is committed to driving change through environmental stewardship and sustainable development. Sustainability promotes balance in the way we coexist with the living world,” concluded Ms. Chauke.

Gqeberha, South Africa, 25 October 2023 – For the past 15 years, the Coega Development Corporation’s (Coega) Flagship Internship Programme has propelled hundreds of young people to achieve success. This year, 14 graduate interns were offered permanent employment opportunities in various Coega Business Units.

The primary objective of the Coega Internship Programme is to empower emerging professionals, equipping them with essential skills and exposure to help improve their employability. For the current financial year 2023/2024, the Programme has offered internship opportunities to over 110 young people as interns across its business units.

Recently, recruitment drives for six additional internship opportunity have commenced, including Marketing and Communications, Business Development, Operations, and Internal Audit.

Ms. Azia Nxumalo, Unit Head of the Coega Development Corporation Human Resources said: “The Coega Internship Programme stands as a beacon of hope for aspiring young individuals. It serves as a guiding light, illuminating the path to professional growth and development, offering a nurturing environment where talents are honed, skills are sharpened, and futures are shaped.

While the Programme cannot guarantee permanent employment for all, it is an opportunity to refine and prove capabilities and make your mark in a corporate environment. Through this Programme, we are not only investing in the future of these aspiring professionals but enriching Coega with fresh perspectives, and a diverse pool of talent.”

Owing to its diverse business strategy, Coega offers exposure to a wide range of career fields, including hospitality, marketing, finance, information technology, and infrastructure project management, amongst others.

One of the recent interns who had been offered a permanent position, Zikhona Mgolombane, Coega Technical Administrator, who recommends the Programme to ambitious graduates: “Coega’s Internship Programme provides people with a rare and invaluable opportunity. This transformative journey has taught me that determination, dedication and perseverance are the keys to unlocking one’s true potential and realising one’s most cherished dreams.”

The growth of the Programme has contributed positively to skills development for talented, unemployed graduates, improving their chances of securing gainful employment in the competitive labour market.

Masixole Gwentshu, Business Development Intern expressed his gratitude for being offered this opportunity: “I am filled with gratitude and happiness, and I am grateful to Coega for not only providing me with this opportunity but also for believing in my potential. I am excited for the future, and I look forward to continuing to contribute my best to this Internship Programme.”

Coega remains committed to nurturing the lives of young people and has significantly expanded its footprint, benefitting the province’s youth and shaping its workforce through the organisation’s expanding footprint.