It’s onwards and upwards for the Coega Development Corporation as it welcomed four investors with a combined investment value of over R385.2 million to the Coega Special Economic Zone (SEZ) during the first quarter of the 2023/24 financial year.
Reflecting on the Q1 performance, Coega's Head of Research and Senior Economist, Semiyou Rafiou said: “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 first investment came from MEC Commercial Trailers, with an estimated total investment of R370mn. This project aims to manufacture heavy-duty commercial trailers; creating about 150 operational jobs and around 200 construction jobs during the construction and commissioning phases.
The second investment is from Atlantic Glass, a fabricator of architectural aluminium products. This investment amounts to R13mn and is anticipated to create 20 operational jobs. Romark Logistics, with a R2.2mn investment, and CNSA Investment further concluded lease agreements to occupy existing facilities of 889m2 and 452m2, respectively, at the multi-user building.
Romark Logistics will use the space for the warehousing and distribution of fast-moving consumer goods with a specialised cold chain distribution, and is projected to generate 14 operational jobs. CNSA Investment - a Chinese investor - will be storing solar panels and related goods; thus supporting energy-related solutions required by South African consumers.
“The secured investment commitments further solidify Coega's competitive advantage as a preferred investment destination; positioning it as a prominent SEZ in Africa and a gateway to international markets,” remarked Asanda Xawuka, Coega’s executive manager for Business Development (SEZ Services).
Feedback from the 2021 Coega SEZ Investor Survey indicated that 91.7% of respondents stated that their business key performance indicators improved since locating at the Coega SEZ. Some 92% of respondents agreed that the Coega SEZ had met its obligations to tenants since locating in the Coega SEZ; and 91.6% of respondents would encourage other businesses to locate at the Coega SEZ.
Statistics South Africa has continued to measure the economic activity of Coega SEZ investors. The latest report, which comprises an assessment of the financial year July 1, 2020 to June 30, 2021, indicated that Coega SEZ investors generated R14.3 billion in income. The total income reflected an annualised increase of 9% compared to the corresponding survey of 2018 (R11bn).
Benefits
Benefits of locating in the Coega Special Economic Zone include:
- Good brand reputation among global investors.
- World-class infrastructure which includes roads, bulk water and sewer networks, secure telecommunication sleeve networks, electrical substations (HV and MV), and overhead power lines (HV and MV) – everything investors are looking for and more in a world-class industrial development zone.
- Access to export markets via the deepwater Port of Ngqura, the Port of Port Elizabeth, and the Chief Dawid Stuurman International Airport.
- Serviced land and buildings for short and long-term lease.
- 24-hour security, providing a safe trading environment.
- Exemption from load shedding up to stage four.
- Access to investor support and incentives from national, provincial and local governments.
- Customs Controlled Area offering duty and VAT suspension.
- A basket of investor-related services to address your needs.
- Skills development systems are in place to assist investors with skills development.
- Focus on environment, sustainability and governance (ESG).
Locate your business at Coega and take up space as a business with a global perspective: invest@coega.co.za.