Name of the Project
Coega special economic zone (SEZ).

Location
Nelson Mandela Bay metropolitan municipality, Eastern Cape, South Africa.
 

Project Owner/s
Coega Development Corporation (CDC).

Project Description
The project is a multibillion-rand initiative, comprising an SEZ and a deep-water port at Port Elizabeth. It will offer tax incentives, rebates and a duty-free zone.

The initiative aims to position South Africa as a platform for global manufacturing and export through foreign and local investments.

Potential Job Creation
Based on the new investments signed in the 2018/19 financial year, the CDC’s conservative estimations are that more than 2 073 jobs will be created, in addition to the 7815 people who are already working at the Coega SEZ.

Capital Expenditure
Not stated.

Planned Start/End Date
Phased development of about 30 to 50 years.

Latest Developments
The CDC secured an additional 18 new investors in the 2018/19 financial year to the value of R2.6-billion, against a target of R693-million.  

The largest share of the investments were in Coega’s aquaculture development zone, which totalled R848-million and represents almost one-third of the R2.6-billion investments secured.  

The private-sector aquaculture investment projects include an abalone farm and a land-based aquaculture farming facility.

In the metals sector, investments with a combined value of R760-million were signed, which represented one-third of the total investments secured by CDC in the past financial year.  

The investments were for a copper smelting plant and a heavy engineering plant for steel rail wheels. 

An investment of R362-million was secured from a Chinese firm involved in the manufacturing of solar photovoltaic cells for the energy sector.

The remaining investments were secured for automotive, chemical engineering, food and beverages, manufacturing and recycling industries, with a total combined investment value of R580-million. 

In the 2018/19 financial year, 18% of new investments originated from China while the remaining investments emanated from South African firms.

Meanwhile, the Coega SEZ aquaculture development zone has received Phase 1 funding for earthworks to develop road and basic infrastructure for its aquaculture development zone, which is under way.  

A feasibility study is also being undertaken for the cultivation of Atlantic Salmon – a popular species for commercial fishing.

Current tenants involved in processing are undertaking several expansions. The CDC has said that it remains committed  to investigating programmes and solutions to expand value chains for agroprocessing sectors within a 120 km radius of the Coega SEZ.  

The CDC is also investigating the cultivation and processing of high-value products from cannabis for pharmaceutical industries. 

Key Contracts and Suppliers
Operational investors at the Coega IDZ:
Bosun Bricks, Dynamic Commodities, UTI Couriers, Cerebos, PE Cold Storage, Digistics, Electrawinds, General Motors Part and Accessories Distribution Centre, Cape Concentrates, Coega Dairy/Coega Cheese, APM Terminals, Discovery Holdings, Famous Brands, National Tooling Initiative, DCD Wind Towers and Agni Steels.

Nelson Mandela Bay Logistics Park:
Faurecia, Rehau, Grupo Antolin, Benteler, Inergy, Hella, MSC (SA) and QPlas.

On Budget and on Time?
Not stated.

Contact Details for Project Information
CDC head of marketing and communications Ayanda Vilakazi, tel +27 41 403 0400, fax +27 41 403 0401 or email Ayanda.Vilakazi@coega.co.za.