Coega Geared Up for the Eastern Cape Investment Conference 2023

Following the most recent investment announcement by the Stellantis Group to develop a R3bn state-of-the-art CKD automotive plant in the Coega Special Economic Zone (SEZ), Coega hosted the Stellantis Group’s Technical Team for introductions and alignment to safeguard the successful implementation of the project.

Gqeberha, South Africa, 27 September 2023 – With a few days to go before the commencement of the Annual Eastern Cape Investment Conference at the East London International Convention Centre on 29 September, the Coega Development Corporation (Coega) looks forward to being part of the Conference to share progress achieved within the first six months of this year.

Since April 2023, Coega has announced five (5) new investors set to take up space in the safe and secure 9003-hectare Special Economic Zone (SEZ), with a combined investment value pledged of R385m (Q1/2023/24FY) and 384 expected jobs. This is in addition to further investment pledges made at the South African Investment Conference earlier this year. Investments announced since April 2023, include, amongst others, MEC Commercial Trailers, with an estimated investment value pledged of R370 million, expected to create approximately 150 operational jobs and 200 construction jobs; Atlantic Glass, with an estimated investment value pledged of R13 million, and expected to create 20 operational jobs; and Romark Logistics, with a R2.2 million investment value pledged, and expected to create 14 operational jobs. This month, Coega welcomed the announcement of a R3bn investment by the Stellantis Group for a CKD automotive manufacturing plant in the Coega SEZ. Direct employment to support the first capacity step is expected at 1 000 jobs, with around 2 097 jobs anticipated for the Eastern Cape (EC) Province. The Stellantis investment will make the EC Province home to five global automotive manufacturers.

“These secured investments are a story of good progress and testament to the attractiveness of the Coega brand in global markets, its good reputation and the competitiveness of its SEZ, that is an investment destination of choice amongst local and global corporations; and it already hosts several global and regional brands across various sectors,” says Mr. Thandile Jack, Coega Senior Business Development Manager.

Based on feedback from the 2021 Coega SEZ Investor Satisfaction Survey, 86% of respondents indicated their satisfaction with Coega SEZ as their investment destination, while 91.6% would recommend the Coega SEZ as an ideal business location to other businesses, and 91,7% indicated that their business key performance indicators have improved since locating at the Coega SEZ. The recent investor survey published by Stats SA (Coega SEZ Census Report), indicated that Coega SEZ investors generated a collective income of R14,3 billion. The total income reflected an annualised increase of 9,0% compared to the income reported in the corresponding survey of 2018 (R11,0 billion).

“With new investments spanning the automotive, energy, manufacturing, and logistics sectors, the Coega SEZ is the continent’s example of what fit-for-purpose locations, synergistic planning, and a client-centric approach to business can achieve,” added Jack.

In a bid to attract further investment, Coega also recently formed part of a delegation accompanying the EC Premier, Honourable Oscar Mabuyane, on an official visit to Tunisia where MOUs and partnership agreements were signed between the EC Province and Tunisia.

Since inception, Coega has played a pivotal role in driving inclusive growth and socio-economic transformation, not only in South Africa, but also across the African continent in areas where the organisation operates. One of Coega’s most remarkable achievements has been its role in the creation of employment opportunities. Last year (2022/23 financial year), Coega generated 15,222 direct and indirect jobs, empowering individuals, and communities alike. By harnessing its regional strength in terms of strategic location and existing industrial activity, Coega has not only stimulated inclusive economic growth but has also nurtured a skilled workforce to foster inclusive development. Coega has become a beacon of hope and a catalyst for change.

The organisation looks forward to the Eastern Cape Investment Conference 2023 as a crucial platform to attract and facilitate foreign and domestic investments, and what the next six months have in store for advancing economic growth and development.