The Coega Development Corporation has once again surpassed expectations and its forecast by achieving three years in a row double-digit of new investments in the Coega SEZ.
The Coega Development Corporation (CDC) today announced its year-end unaudited performance results for the Financial Year (FY) 2016/17, which, it says, exceeded expectations. The organisation achieved double-digit growth in new investments in the Coega SEZ for the third consecutive year.
The organisation achieved double-digit growth in new investments in the Coega SEZ for the third consecutive year.
This follows the CDC’s recent announcement that more than R1-billion of newly signed investments in the Coega SEZ are ready for implementation, including:
- An R650-million manufacturing cement grinding plant,
- An R71-million ready mix concrete plant, and
- An R350-million gas cylinder plant.
Highlights for the 2016/17 FY unaudited performance results:
- New investors signed: 16
- Value of new investment signed: R11.69-billion
- Jobs created: 16,500
– The SEZ has now reached 7,170 operational jobs
– 9,330 new construction jobs both in the IDZ and new infrastructure projects
- Training achieved: 5886
- SMME spend achieved: 36%
Furthermore, SMME spent in 2016/17FY amounted to R776 000 000 (2015/16FY: R 1.013 billion), more local SMEs are benefiting from the CDC’s projects.
For example, the BAIC project has seen 11 Nelson Mandela Bay Municipality SMMEs (including two females-owned companies), given work packages valued at more than R17 million to clear the BAIC site, prepare a platform for BAIC SA, and for plant & equipment hire.
“The CDC, for the first time in 17 years, has hit a half-a-billion rand in revenue generated, achieving R532,77 million against a budget of R451,2 million,” said Lionel Billings, CDC chief financial officer.
He adds that operational investors have increased from 36 to 40 (11%) within one year, a significant milestone given the tough current economic environment in South Africa. The cumulative value of private sector investments already on the ground and operating is R6,996 billion with a further R1 billion having commenced implementation and the first R5 billion of the BAIC investment having hit the ground in earnest.
The cumulative value of private sector investments already on the ground and operating is R6,996-billion with a further R1-billion having commenced implementation and the first R5-billion of the BAIC investment having hit the ground in earnest.
Of particular significance, in line with CDC’s vision of being a catalyst for championing of the socio-economic development in the Eastern Cape and South Africa, is the number of jobs created during the 2016/17FY.
For the first time in the history of the CDC, the organisation has surpassed the 100 000 jobs created milestone during 2016/17FY.
The cumulative number of jobs created since inception 17 years ago increased from 94,732 to 102,794 (8,5%). This includes the 16,500 jobs that were created in the 2016/17FY (7 170 Operational jobs against a target of 7,115 and 9,330 construction jobs), said the CFO.
In addition, training and development are critical to the economy of the province in providing the much-needed skills, especially to the youth. As such, the CDC has trained 5,886 people in the period under review.
“This has the potential to reduce skills flight to other provinces and contribute to the development of the Eastern Cape economy,” added Billings.
According to Dr Ayanda Vilakazi, CDC’s Head of Marketing, the aforementioned results show that the CDC continues to be a pillar of hope in the Eastern Cape, and through its projects countrywide the impact has reached more than six million people (or 11% of the population).
A recent report by Muffin Consulting confirmed this, by showing, among others, that:
- 84% of the companies invested in the Coega SEZ reported an increase in profitability,
- 85% of investors have increased their workforce since opening in the Coega SEZ, thus reducing the scourge of unemployment in the province,
- 62% have expanded their factories, this includes PE Cold Storage, Coega Dairy, to name but a few,
- More than 90% of operational investors described the Coega SEZ and its logistics park where VWSA is located as the ideal location for industries wishing to grow, and
- Over 50% of companies surveyed sourcing more than 78% of their inputs locally, thus boosting the local economy.