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.
