Coega Receives Clean Audit Report from the AGSA for the Fourth Consecutive Year

Coega Development Corporation Chief Financial Officer, Mr. Rodger Hill

Highlights:

• The Coega Development Corporation is committed to excellence, including sustained clean audit outcomes.
• Coega continues to be committed to Good Governance and has adopted controls and systems that clients and partners can rely on.
• A clean audit report signifies credible financial statements fully aligned to international financial reporting standards.
• There were no areas of noncompliance or findings on the reported performance identified by the Auditor-General of South Africa.

Gqeberha, South Africa, 11 October 2023 – The Coega Development Corporation (Coega) welcomes the report of the Auditor-General of South Africa (AGSA) included in its Integrated Annual Report for the 2022/2023 Financial Year (FY), in which the organisation received a Clean Audit Report for the fourth consecutive year, says Mr. Rodger Hill, Coega’s Chief Financial Officer.

This report signifies that Coega’s financial management practices adhere to the highest standards of transparency and accountability, reassuring tenants, stakeholders, partners, and clients, and boosting public confidence in general. Such recognition reflects the concerted efforts made by Coega’s finance team, management, and employees to maintain strict compliance with applicable legislation and financial regulations, as well as the optimal use of resources. By attaining yet another clean audit, Coega has reinforced its reputation as a reliable and trustworthy entity, positioning itself as an attractive partner for local and global investors and stakeholders.

The Clean Audit Report follows good performance by the organisation. During the year, Coega secured nine (9) new investors, with a combined investment value of R1.224 billion, underscoring the Coega Special Economic Zone (SEZ) as a preferred investment destination, and leader in African SEZ operations and development. These investments span various sectors, including logistics, agro-processing, chemical, and general manufacturing clusters. Additionally, Coega has made a substantial contribution to job creation during the financial year, contributing a total of 15 222 jobs created (5 844 construction and 9 378 accumulative operational jobs). Furthermore, the organisation trained over 3 932 people. In terms of both SEZ and non-SEZ programmes, the organisation generated an impressive overall revenue of R609.3 million. To-date, Coega is home to 58 operational investors across diverse sectors (and growing), with a combined investment value of R11.96 billion. Notably, the Coega SEZ stands out as a preferred investment destination, with approximately 31% of investments being Foreign Direct Investment (FDI), ranging from small, medium, and micro enterprises (SMMEs) to large global exporters. Coega has also excelled in SMME procurement spend, achieving a remarkable 47.93% for the 2022/23 FY, in line with its vision to be a leading catalyst for the championing of socio-economic development. In addition, Coega has achieved a Level 1 B-BBEE certificate, improving from Level 3, last year.

The Corporation’s good performance is a result of its position as a plug and play investment destination, diversification strategy in terms of revenue generation, market development into the African continent, and its reputable global brand image. The Corporation’s focus is centered on achieving impact and outcome statements, namely, financial sustainability, increased strategic economic advantage for targeted industries, and economic opportunities for the marginalised.

Looking ahead, Mr. Rodger Hill expressed confidence about the current financial year’s performance: “Coega has already signed four (4) new investors with an investment value of R385 million in the first quarter (April to June 2023), while in September the Stellantis Group confirmed a R3 billion investment set to be operational in early 2026 in line with the Group’s Dare Forward Strategy. The CKD plant is earmarked to manufacture 50 000 vehicles, with capacity to achieve 90 000.

Coega is optimistic about its forecasted performance for the remaining six months of the financial year to March 2024, as the organisation continues to be engaged in various government infrastructure development and maintenance projects throughout South Africa, and other projects throughout the continent as an Implementing Agent of Choice.”

Sustaining a clean audit signifies that Coega has maintained the financial controls and systems, whilst reducing the likelihood of financial irregularities, fraud, and mismanagement. By upholding financial discipline, Coega not only mitigates financial risks but also aligns with international best practices, establishing a solid foundation to stimulate sustainable economic growth and development. This creates an opportunity for the organisation to assist other state-owned entities and government departments to achieve the same.

Coega remains steadfast in the implementation of its Five-year Strategic Plan 2020/21 – 2024/2025, endorsed by its shareholder and Board of Directors, and supported by partners and stakeholders, concludes Hill.

Audio Clip: Coega Clean Audit - Audio Clip by Coega Development Corporation CFO Rodger Hill.mp4

Additional Images: ?Coega - Media Folder - Credit to Coega Development Corporation