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More than 7,000 jobs to be created by Coega

The Coega Development Corporation (CDC) announced that more than an estimated 7,000 jobs will be created from the latest investor signings. This, based on CDC’s latest projections on foreign and domestic direct investment flows to the Coega Industrial Development Zone (IDZ) in South Africa over a 12 month period from April 2014 to March 2015.

“The 18 new investors that have signed new investment agreements or those in the stages of finalising the agreements with CDC will possibly add an additional 7,745 jobs to the economy of Nelson Mandela Bay,” said Christopher Mashigo, CDC Business Development Executive Manager.

The majority of the jobs to be created will be in the agro-processing estimated to be more than 2,608 jobs; the metallurgical sector will create about 1,397 jobs; and more than 2,530 jobs are expected to be created in the automotive sector; 450 created at the BPO, 100 jobs to be created through the chemicals sector, 565 jobs via the Logistics sector and 95 jobs through the Renewable energy sector.

The countries most interested in investing in the Eastern Cape were from the Far East or Europe, according to Mashigo.

“Malaysia is currently investing in metals and chemical projects, Germany has expressed interest for the automotive industry and Italian companies are investing in the logistics and energy projects in the Coega IDZ.”

“The highest value of investments occurred in Coega’s metallurgical sector which represented R1,1bn or nearly half of investment in the past 12 months,” Mashigo said.

This was followed by investments worth R170m in Coega IDZ’s agro-processing sector, the automotive sector (R120m) and also the renewable energy sector (R80m). Land earmarked for the industrial activity of these new projects falls on 24 hectares within the Coega IDZ.
According to Mashigo, three factors are driving foreign and domestic direct investment in the Coega IDZ.

“These include strategic location and competitive land rates, a host of new incentives from Department of Trade and Industry and finally the suspension of import duties and other major tax incentives to be offered by CDC’s customs controlled areas.”

He said major and catalytic mega projects are also progressing well. These include Coega’s aquaculture farming facility, the multi-OEM complex and the recently announced aeronautical and aerospace manufacturing cluster.

Mashigo also said other major construction activities worth more than R4bn are currently undertaken in the Coega IDZ.

Current construction projects underway within the IDZ and expected to be completed this year are the R130m Vector Logistics; Afrox’s air separation unit (R300m;) the R3.5bn Dedisa Peaking Power Plant; the R53m construction of ID Logistics and Digistics Logistics expansion, costing R32m.

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