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Coega SEZ well-placed for new investments


The Coega Development Corporation says the Special Economic Zone is well-placed to receive investments that are expected to flow from President Cyril Ramaphosa’s R1.2 trillion investment drive.

In a statement on Thursday, CDC’s Head of Marketing, Dr Ayanda Vilikazi, said that “foreign investors will put down roots in South Africa where there is appropriate infrastructure, support and incentives.”

He said the Coega Special Economic Zone (SEZ), which is managed and marketed by the CDC, is one of the most successful investment zones in Africa.

“Fortunately, the Coega story is well known to at least two of President Ramaphosa’s ‘special envoys on investment.  Both former minister of finance Trevor Manuel and former deputy minister of finance Mcebisi Jonas were instrumental in setting up the IDZ,” said Vilakazi.

“Coega gives President Ramaphosa’s team a strong case to make to potential investors wanting to establish themselves in the African market, in particular – although we are fully connected to the rest of the world as well.

Dr Vilikazi said that despite the advances being made in improving port and other logistics and manufacturing-related infrastructure in a number of other African countries, South Africa remains a preferred investment destination.

He said Coega “has set a global benchmark for well-designed and logistically fully integrated ‘plug and play’ SEZs.”

Vilikazi said that it is not enough to have serviced and zoned land, ample power and data, and direct access to road, rail and shipping links.

“Investment decisions are also influenced by the support available to the families of very skilled management and staff. South Africa as a whole, and Nelson Mandela Bay in particular offer a lifestyle, schools and medical support that is unmatched on the rest of the continent.

“Highly mobile individuals are happy to come to Nelson Mandela Bay because they can safely bring their families with them. Very few SEZs in the world offer that additional incentive.

“Coega has proven that if the right infrastructure is in place, and there is support to help investors cut through red tape then investors will heed the call of President Ramaphosa.”

“With the incentives announced under the Special Economic Zone (SEZ) programme Coega is even more competitive globally,” Vilikazi said.

He said over the past 18 years the Coega SEZ has attracted 42 operational investors worth a combined investment value of R7 billion and created 100 000 jobs.

Vilikazi said in 2018 alone, projects worth nearly R12 billion are expected to come on stream and they include Osho Cement’s R600m investment, Beijing Automobile International Corporation of R11bn, Hella R53.3m and MM Engineering with a R350 million injection into the SEZ.

He said over 300 new jobs are being created in the process.

“The BAIC automotive plant is the largest single investment in South Africa in the past 40 years,” Vilikazi added.