Photo by: Creamer Media
CDC new investor pipeline “robust” despite technical recession and deteriorated global economic investment state
Coega leading South Africa’s oceans economy through land-based aquaculture - new investments close to R1 billion from private sector
New investments to create in excess of 2 000 jobs
Port Elizabeth, Thursday, July 25, 2019 -- The Coega Development Corporation (CDC), operator of the Coega Special Economic Zone (SEZ) in Nelson Mandela Bay, announced today that it has secured an additional 18 new investors in the 2018/19 financial year (FY).
The 18 new investors signed amounted to R2,6 billion in investments against a target of R693 million for the 2018/19 FY.
New signed investments committed to Coega’s aquaculture development zone represented the largest share of investments signed in the 2018/19 FY following an Environmental Impact Assessment (EIA) approval little over a year ago.
Investments for the CDC’s aquaculture development zone came in at R848 million and represented almost a third of the R2,6 billion investments secured.
The private sector aquaculture investment projects included 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 a 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.
The third top performing investment sector was energy where an investment of R362 million was secured from a Chinese firm involved in the manufacturing of solar photovoltaic cells.
The remaining investments were secured in automotive, chemical engineering, food and beverages, manufacturing and recycling industries with a total combined investment value of R580 million. The investments included:
· two (2) investments in agro-processing with combined investment value of R302 million respectively for a citrus cold storage warehouse, container depot and packhouse, and another investment focused on processing artichokes and other high-value crops;
· two (2) investments in the automotive sector, which included a commuter bus assembly plant (R130 million), and a power bike assembly facility (investment value: undisclosed);
· two (2) investments in chemical engineering, which included a manufacturing facility for biodegradable cleaning and related project (R40 million), and a biological active pharmaceutical ingredient manufacturing facility (R76 million);
· three (3) investment in the food and beverage manufacturing sector including a sugar-based confectionary production facility (R600 000), and two investments valued at R32,5 million by an existing CDC tenant operating in the retail salt market;
· an investment by a logistics sector firm involved in providing goods and services in the freight movement industry (financial value: undisclosed);
· two (2) investments for a fiber optic cabling manufacturing, and a PVC compound production facility (financial values: undisclosed), and
· A tyre recycling facility (financial value: undisclosed).
In the 2018/19 FY, 18% of new investments originated from China while the remaining investments emanated from South African firms.
“On an international level, the Coega SEZ remains a preferred investment destination for Chinese FDI flows and new greenfield investments in Africa. Coega will have three operational Chinese investors, including global Fortune 500 company BAIC, towards 2022,” said Dr. Ayanda Vilakazi, Head of CDC Marketing, Brand and Corporate Communications.
The new investments will certainly drive job creation in the Eastern Cape, economic growth, diversification of Nelson Mandela Bay’s economy, and provide many other socio-economic development spin-offs including empowerment, development and transformation in the broadest sense, amongst others, believes Dr. Vilakazi.
“Based on the new investments signed in the past financial year, our conservative estimations are that in excess of 2 073 jobs will be created,” he said.
This will add to the 7815 people who are already going to work at Coega SEZ on a daily basis.
Commenting on the establishment of the Coega SEZ aquaculture development zone, Dr. Vilakazi said the CDC has received Phase 1 funding for earthworks to develop road and basic infrastructure for its aquaculture development zone (ADZ), which is currently underway.
“In addition, we are undertaking a feasibility study for the cultivation of Atlantic Salmon a popular species for commercial fishing,” he said.
In relation to agro-processing, Dr. Vilakazi noted that current tenants were busy with several expansions, and that the CDC continues to remain committed to looking at programmes and solutions to expand value chains for agro-processing sectors within a 120-kilometer radius of the Coega SEZ.
“Another promising venture which we are busy investigating relates to the cultivation and processing of high-value products from Cannabis for pharmaceutical industries,” he said.
Issued on behalf of the Coega Development Corporation by Meropa Communications (Port Elizabeth)