Investments in the Coega Industrial Development Zone (IDZ) now amount to about R12-billion, with about 14 investments signed on and a potential 28 in the pipeline.

CEO Pepi Sillinga said on Tuesday that the R12-billion figure included the latest additions to Coega, such as an Absa call centre which employs about 90 staff, which could be upscaled to 600 employees, as well as the recently announced R1,5-billion soyabean biofuels project and two investors involved in the production of automotive components for Volkswagen - an investment valued at some R400-million.

The R12-billion total, however, excluded the R18,5-billion Alcan smelter. This electricity intensive project was reportedly delayed, because of South Africa's power crunch.

Spokesperson Ongama Mtimka explained that there were currently about eight investors conducting feasibility studies and carrying out "serious negotiations" with a view to establishing operations in the Coega IDZ.

He added that about 20 more investors were at the prefeasibility stage and were making decisions as to whether they would invest in the zone.

The timing of these investments coming to fruition would depend on the nature of the investment and the period required to finalise the necessary studies.

Mtimka explained that since the 2005/6 financial year the Coega Development Corporation had set itself targets in terms of the number of investors it was looking to attract each year. It came in just under the 2006/7 target of ten investors, securing nine for the year.

With regard to long-term milestones to be attained, Mtimka noted that the corporation was currently in the process of determining its goals for investments, and would also finalise its 2008/9 investment targets in the "next few days".

The sectors of focus for investment would be logistics, automotive, chemicals, metals, services - business process outsourcing - petrochemicals and mariculture.

Sillinga highlighted some of the elements that he believed makes Coega a "very attractive" investment proposition. These included its deep-water port, which would be operational by the second quarter of 2009, the human capital element, which was provided for through skills development (a new skills centre which has recently been approved), and its recruitment, placement and labour management services.

He added that as Coega was a greenfields development it was able to offer customised solutions and respond to investors' precise needs.

Responding to investors' needs would involve ensuring a stable power supply, and Sillinga said that Coega would work to address investors' concerns and meet their energy requirements. He explained that the IDZ would get a new open cycle gas turbine, which independent power producer AES would build, and a 1 600-MW closed-cycle gas turbine which London-listed Ipsa was developing. He also said that a cogeneration project was being investigated.
Coega IDZ investments reach R12bn, more in pipeline

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