Coega

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.

Gqeberha, South Africa, 19 October 2023 – As African countries pursue sustainable opportunities for economic development and job creation, importance is placed on maximising local resources and industrial strengths. Recently, the City of Bulawayo, Zimbabwe’s second largest city and once an industrial powerhouse, visited the Coega Special Economic Zone (SEZ) as part of a week-long benchmarking tour to South Africa’s most reputable industrial and economic zones. The visit was organised through the department of trade, industry, and competition (the dtic).

“As a designated SEZ in Zimbabwe, the City of Bulawayo travelled to South Africa, to learn from successful SEZs as part of preparations for the development our own SEZ. Our visit was facilitated by SEZ Africa,” said City of Bulawayo Town Clerk, Mr. Christopher Dube.

The visit included a detailed presentation of Coega’s development and performance since inception in 1999, its expansion strategy, and a guided tour through the fourteen (14) Coega SEZ clusters.

“The tour exceeded our expectations. It has been a fruitful day. We are trying not to reinvent the wheel but to learn from those who are ahead of us. Thank you for the exposure – we have learnt a lot,” said Mr. Dube.

Programme Director for Client Solutions, Dr. Siyabonga Simayi, emphasised the value of cross-sector engagements between like-minded organisations. “At Coega, we believe in the power of collaboration, knowledge-sharing, and learning, to build strong and prosperous communities and the Continent. The objective of this engagement was to foster mutually beneficial partnerships and explore potential synergies by sharing valuable knowledge and experiences in economic development.”

The Coega SEZ’s remarkable success stands as a testament to what visionary planning, strategic positioning, and unwavering commitment can achieve, providing a blueprint for the development of SEZs across the African continent.

Mr. Idriss Mouchili, Director of the Coega Africa Programme, shared: “The establishment of special economic zones is a critical catalyst for economic growth, industrialisation, and development. The knowledge shared and the strategies discussed during this visit will play a pivotal role in shaping the future of the City of Bulawayo.”

The Coega SEZ’s robust infrastructure, competent personnel, commitment to good governance, and effective partnerships are a few of the qualities that have led to its success. By drawing upon these lessons, others can unlock their own SEZ potential, driving economic growth and job creation.

Mr. Mmeli Mdluli, Managing Director of SEZ Africa, stated the overarching aim of the visit: “We want to ask questions, find relevant solutions, get down to work, and implement. We are here as students, to learn, explore synergies, become partners. At SEZ Africa, we are committed to transforming the city into a vibrant SEZ, and this visit has been an invaluable step in that direction.”

Through the flagship Coega Africa Programme, Coega has expanded its non-SEZ services to African markets including Zimbabwe, Nigeria, Cameroon, Central African Republic, and Senegal. “In the pursuit for economic transformation and sustainable growth, the Coega SEZ stands as a beacon of hope and a model for development not only in South Africa but also across the African continent, in support of the African Continental Free Trade Area (AfCFTA),” concluded Simayi.

Gqeberha, South Africa, 11 October 2023 – The Coega Development Corporation (Coega) welcomes the report of the Auditor-General of South Africa (AGSA) included in its Integrated Annual Report for the 2022/2023 Financial Year (FY), in which the organisation received a Clean Audit Report for the fourth consecutive year, says Mr. Rodger Hill, Coega’s Chief Financial Officer.

This report signifies that Coega’s financial management practices adhere to the highest standards of transparency and accountability, reassuring tenants, stakeholders, partners, and clients, and boosting public confidence in general. Such recognition reflects the concerted efforts made by Coega’s finance team, management, and employees to maintain strict compliance with applicable legislation and financial regulations, as well as the optimal use of resources. By attaining yet another clean audit, Coega has reinforced its reputation as a reliable and trustworthy entity, positioning itself as an attractive partner for local and global investors and stakeholders.

The Clean Audit Report follows good performance by the organisation. During the year, Coega secured nine (9) new investors, with a combined investment value of R1.224 billion, underscoring the Coega Special Economic Zone (SEZ) as a preferred investment destination, and leader in African SEZ operations and development. These investments span various sectors, including logistics, agro-processing, chemical, and general manufacturing clusters. Additionally, Coega has made a substantial contribution to job creation during the financial year, contributing a total of 15 222 jobs created (5 844 construction and 9 378 accumulative operational jobs). Furthermore, the organisation trained over 3 932 people.

In terms of both SEZ and non-SEZ programmes, the organisation generated an impressive overall revenue of R609.3 million. To-date, Coega is home to 58 operational investors across diverse sectors (and growing), with a combined investment value of R11.96 billion. Notably, the Coega SEZ stands out as a preferred investment destination, with approximately 31% of investments being Foreign Direct Investment (FDI), ranging from small, medium, and micro enterprises (SMMEs) to large global exporters. Coega has also excelled in SMME procurement spend, achieving a remarkable 47.93% for the 2022/23 FY, in line with its vision to be a leading catalyst for the championing of socio-economic development. In addition, Coega has achieved a Level 1 B-BBEE certificate, improving from Level 3, last year.

The Corporation’s good performance is a result of its position as a plug and play investment destination, diversification strategy in terms of revenue generation, market development into the African continent, and its reputable global brand image. The Corporation’s focus is centered on achieving impact and outcome statements, namely, financial sustainability, increased strategic economic advantage for targeted industries, and economic opportunities for the marginalised.

Looking ahead, Mr. Rodger Hill expressed confidence about the current financial year’s performance: “Coega has already signed four (4) new investors with an investment value of R385 million in the first quarter (April to June 2023), while in September the Stellantis Group confirmed a R3 billion investment set to be operational in early 2026 in line with the Group’s Dare Forward Strategy. The CKD plant is earmarked to manufacture 50 000 vehicles, with capacity to achieve 90 000.

Coega is optimistic about its forecasted performance for the remaining six months of the financial year to March 2024, as the organisation continues to be engaged in various government infrastructure development and maintenance projects throughout South Africa, and other projects throughout the continent as an Implementing Agent of Choice.”

Sustaining a clean audit signifies that Coega has maintained the financial controls and systems, whilst reducing the likelihood of financial irregularities, fraud, and mismanagement. By upholding financial discipline, Coega not only mitigates financial risks but also aligns with international best practices, establishing a solid foundation to stimulate sustainable economic growth and development. This creates an opportunity for the organisation to assist other state-owned entities and government departments to achieve the same.

Coega remains steadfast in the implementation of its Five-year Strategic Plan 2020/21 – 2024/2025, endorsed by its shareholder and Board of Directors, and supported by partners and stakeholders, concludes Hill.

The Coega Development Corporation (Coega) continues to play a pivotal role in advancing infrastructure development as a key priority of the South African Economic Reconstruction and Recovery Plan. Based on 24 years’ expertise in infrastructure delivery, and with projects underway across the country and into Africa, Coega has demonstrated remarkable success spearheading infrastructure development and maintenance projects for public health, education, and other programmes by virtue of its vision and competence. A significant achievement lies in Coega’s ability to integrate economic opportunities within the execution of these projects, thereby fostering growth and prosperity in local communities.

Coega’s Infrastructure Programme, which includes the Department of Health (DoH) Infrastructure Portfolio, has to date, been involved in the delivery of more than 60 health- related infrastructure projects to an approximate value of R7bn. More than 10 000 jobs have been created on the Portfolio. The DoH Infrastructure Portfolio plays a critical role in enhancing public spaces to promote inclusive socio-economic development and related outcomes, and is informed by the National Development Plan Vision 2030 and the National Infrastructure Plan 2050.

In the socio-economic context, development refers to the improvement of lifestyles through employment, skills development, education, and income amongst other factors. Through effective project management, Coega has revolutionised the way projects are executed, impacting communities in terms of benefit realisation. The R680-million Sipetu District Hospital, for example, is one of the three recently opened healthcare facilities, with the Coega Development Corporation fulfilling its role as Trusted Implementing Agent of Choice, alongside the Khotsong TB Hospital and Meje Community Health Centre.

Collectively, the three facilities awarded SMMEs contracts to the value of no less than R275m.

As a public entity and an Implementing Agent of Choice, Coega holds itself to strict account when placing socio-economic development and inclusive growth at the forefront of infrastructure development, and the DoH Portfolio is no exception. The participation of SMMEs is a standard imperative, with opportunities earmarked for local entrepreneurs by way of designated target areas. The Coega SMME Programme facilitates the growth of small to medium size businesses during the construction process while artisans are recruited and upskilled through the Coega Skills Development Centre.

Since the inclusion of the SMME Programme in the DoH Portfolio in 2007, Coega has seen hundreds of SMMEs benefit from large infrastructure projects. The experience that local SMMEs gain from these projects equips them with the expertise required to provide specialist maintenance services for healthcare and other state-owned facilities in the future.

The maintenance of infrastructure is also integral to achieving improved health outcomes, and thus quality of life, for communities.Coega’s DoH Infrastructure Portfolio is equipped with a highly skilled team that has acquired the experience needed to deliver contemporary facilities to enable the delivery of healthcare services to previously underserved communities.

Recent milestones include the official launch of the ultramodern 100 bedded Sipetu District Hospital in Ntabankulu, equipped with general wards, maternity wards, tuberculosis (TB) wards, and a paediatric ward; theopening of the Khotsong TB Hospital in Matatiele as a specialised centre for the diagnosis, treatment, and care of TB patients equipped with state-of-the-art medical facilities; and the opening of the Meje Community Health Centre in Bizana, all completed by providing local employment opportunities.

In response to the evolving socio-economic needs of South Africa, Coega has emerged as a trailblazer in infrastructure implementation and maintenance, complementing its role as Africa’s leading operator and developer of the 9003ha Coega SEZ, which is also a gateway to Africa and World markets. From project inception to completion, Coega remains steadfast in its vision to be a leading catalyst for the championing of socio-economic development.

Gqeberha, South Africa, 27 September 2023 – With a few days to go before the commencement of the Annual Eastern Cape Investment Conference at the East London International Convention Centre on 29 September, the Coega Development Corporation (Coega) looks forward to being a part of the Conference to share progress achieved within the first six months of this year.

Since April 2023, Coega has announced five (5) new investors set to take up space in the safe and secure 9003-hectare Special Economic Zone (SEZ), with a combined investment value pledged of R385m (Q1/2023/24FY) and 384 expected jobs. This is in addition to further investment pledges made at the South African Investment Conference earlier this year. Investments announced since April 2023, include, amongst others, MEC Commercial Trailers, with an estimated investment value pledged of R370 million, expected to create approximately 150 operational jobs and 200 construction jobs; Atlantic Glass, with an estimated investment value pledged of R13 million, and expected to create 20 operational jobs; and Romark Logistics, with a R2.2 million investment value pledged, and expected to create 14 operational jobs. This month, Coega welcomed the announcement of a R3bn investment by the Stellantis Group for a CKD automotive manufacturing plant in the Coega SEZ. Direct employment to support the first capacity step is expected at 1 000 jobs, with around 2 097 jobs anticipated for the Eastern Cape (EC) Province. The Stellantis investment will make the EC Province home to five global automotive manufacturers.

“These secured investments are a story of good progress and testament to the attractiveness of the Coega brand in global markets, its good reputation and the competitiveness of its SEZ, that is an investment destination of choice amongst local and global corporations; and it already hosts several global and regional brands across various sectors,” says Mr. Thandile Jack, Coega Senior Business Development Manager.

Based on feedback from the 2021 Coega SEZ Investor Satisfaction Survey, 86% of respondents indicated their satisfaction with the Coega SEZ as their investment destination, while 91.6% would recommend the Coega SEZ as an ideal business location to other businesses, and 91,7% indicated that their business key performance indicators have improved since locating at the Coega SEZ. The recent investor survey published by Statistics South Africa (Coega SEZ Census Report), indicated that Coega SEZ investors generated a collective income of R14,3 billion. The total income reflected an annualised increase of 9,0% compared to the income reported in the corresponding survey of 2018 (R11,0 billion).

“With new investments spanning the automotive, energy, manufacturing, and logistics sectors, the Coega SEZ is the continent’s example of what fit-for-purpose locations, synergistic planning, and a client-centric approach to business can achieve,” added Jack.

In a bid to attract further investment, Coega also recently formed part of a delegation accompanying the EC Premier, Honourable Oscar Mabuyane, on an official visit to Tunisia where MOUs and partnership agreements were signed between the EC Province and Tunisia.

Since inception, Coega has played a pivotal role in driving inclusive growth and socio-economic transformation, not only in South Africa, but also across the African continent in areas where the organisation operates. One of Coega’s most remarkable achievements has been its role in the creation of employment opportunities. Last year (2022/23 financial year), Coega generated 15,222 direct and indirect jobs, empowering individuals, and communities alike. By harnessing its regional strength in terms of strategic location and existing industrial activity, Coega has not only stimulated inclusive economic growth but has also nurtured a skilled workforce to foster inclusive development. Coega has become a beacon of hope and a catalyst for change.

The organisation looks forward to the Eastern Cape Investment Conference 2023 as a crucial platform to attract and facilitate foreign and domestic investments, and what the next six months have in store for advancing economic growth and development.