WORKING TOGETHER TO SUCCEED
WRITTEN BY JACK SLATER
In a relatively short time, the CDC, as custodians of a major development project, has managed to build on significant achievements year-on-year. There are now a number of noteworthy investors â€“ including major foreign direct investors â€“ moving into the Coega IDZ, a purpose-built industrial area equipped with world-class infrastructure to attract and retain local and international investment.
COEGA DEV CORP
Currently, the Coega IDZ is home to 22 operational investors. A further R7.5-billion in investment is in the implementation stage. Projects in the negotiation stage are valued at R8.1-billion and those under feasibility account for R116.3-billion. Four investors are currently in the construction phase and it is likely that, by the end of 2014, the Coega IDZ will boast 27 operational investors with a number of additional investors under construction by that time.
n terms of timelines, from 1999 to 2002 the IDZ underwent a
the future and plan an industrial future for the Nelson Mandela Bay
formalization process which included rezoning, EIA’s and meeting
Municipality. The CDC is already well on the way to achieving that
other regulatory requirements. At that point, what is now the
goal in the short time it has been operational.
IDZ was an expanse of land that was not particularly suitable for
The Coega IDZ is demarcated into 14 zones and is specifically
agricultural activity and fell outside of the old Nelson Mandela Bay
designed along the cluster model, linking related industries and their
[Port Elizabeth] municipal boundaries and, as such, did not have any
supply chains in close proximity to one another to maximise efficiency
municipal services in place. The construction phase ran from 2002-
and minimise turnaround times. The Coega IDZ boasts the following
2005 when the bulk municipal services were put in place.
The IDZ attracted its first investor (Dynamic Commodities) in
• Commercial and logistics;
2007 and another five investors that year. It is reasonable then, that
• Automotive and auto components;
the measurement of investment must be from the point of attraction
• Light industry;
of the first investor. Since then, 22 investors have become operational
in the IDZ and a growing number of investors are in the pipeline. This
• Metals and metallurgy;
is in spite of several challenges, including the European debt crisis
and electricity shortages, delaying committed projects in the wake of
funding scarcities and reduced commitments from power suppliers.
• Agro-processing (aquaculture, food packaging
The Coega IDZ’s development trajectory should not be evaluated
and food processing);
against the short time it has been operational, it should be measured
• Mari-culture and coastal; and
in decades, which was the instruction from the national department
• Airport and air logistics.
of trade and industry (the dti) at the onset – to look 50-75 years into
The IDZ attracted its first investor (Dynamic Commodities) in 2007 and another five investors that year.
Endeavour Magazine | 63
COEGA DEV CORP
The Coega IDZ has world-class, purpose-built infrastructure to
and Health in the Eastern Cape
suit every investor’s needs. When the IDZ was built, it was established
and the Department of Education
on the plug-and-play model to cut out long construction periods
in KwaZulu-Natal, where it is able
and connectivity issues. As a result, once the investor has finished
to put specialist skills – and the
staff training and development
construction of its own building, it’s all systems go.
experience of establishing the
IDZ – into action across the two
provinces to ensure that critical
infrastructure is delivered to
to develop its talent pool to
meet the required critical skills
Principle Business Activities The CDC’s principal mandate is to attract and retain investment
in an effort to both share its knowledge capital and drive socioeconomic development in the Eastern Cape, while simultaneously
and leadership competencies
in the Coega IDZ but the CDC expanded its service offering in 2009 to a number of public sector clients, mainly government departments,
to carry out and deliver the
strategy of the organisation.
The CDC is a knowledgebased
Training programmes supported
include the development of
This was possible since the CDC boasts one of the highest
organisation with its competitive
core technical skills, as well as
concentrations of highly qualified and experienced staff in the
advantage dependent on the
province and arguably ranks favourably with the best of the best in its
dynamic capabilities of its human
skills. In addition to individual
class nationally including a range of engineering professionals, project
study programmes, the CDC
managers and quantity surveyors. The Coega project was founded by
management is the primary focus
coordinates corporate employee
and continues to be managed by these specialists. The wealth of in-
of its human capital strategy
house skills has resulted in it managing major infrastructure projects
hence the competency model
project management (PMBoK
on behalf of the Departments of Roads and Public Works, Education
focuses on critical organisational
and Prince 2). This enables staff
diversifying income streams through project management fees.
and interns to attain their and targeted high potential employees to participate in targeted executive training programmes. The CDC also has a thriving intern programme which continues to contribute positively towards skills development and employment creation for unemployed talented graduates of the Eastern Cape, thereby improving their chances of attaining employment in the highly competitive labour market. The CDC has built up a thriving corporate social investment (CSI) programme dedicated to pursuing socio-economic transformation, cognisant of the provincial and societal challenges which hamper real development in the Eastern Cape. As a result, the CDC’s CSI initiatives are geared to meet certain strategic shortfalls by focusing on education, training and human development specifically.
The Customers The Coega IDZ already offers the best of the best and is South Africa’s premier investment destination. This is built into the IDZ offering, which is uniquely geared to ensure competitiveness and quality – not only in terms of services but also infrastructure and spatial planning to enhance IDZ investors’ competitiveness and supply chain linkages and integration, while lowering the costs of doing business and maximizing incentive support.
A significant budget for staff training and development is set aside annually. The purpose is to ensure that the organisation continues to develop its talent pool to meet the required critical skills and leadership competencies to carry out and deliver the strategy of the organisation.
COEGA DEV CORP
The IDZ offers these key features: • Clustering for synergy and supply chain integration; • Facilitation of access to government incentives (local, provincial and national). The suite of incentives includes but is not limited to one-time and/ or recurring grants for:
o Skills development;
o Export marketing (new market development);
o Job creation (national and provincial grants can be accessed concurrently);
o Foreign investment (compensated for the qualifying costs of moving new
o Investing/re-investing in productive assets; and
o Black business development.
machinery and equipment (excluding vehicles) from abroad);
• Customized solutions for investors, e.g. serviced sites, fit-for purpose buildings; • The IDZ is served by two ports, and characterised by a close distance to the deep water Port of Ngqura, which is in Zone 1 of the Coega IDZ; • Facilities for skills development (with personnel to provide customised solutions); • Custom-controlled areas; • Environmental assistance (where applicable); • Advanced infrastructure; • Plug and play approach; • Marketing and other value-added services; and • ICT services base infrastructure: infrastructure which allows for the connectivity of voice /data/ internet and video services up to the tenants’ premises. Provision of shared broadband Internet connectivity by Coega Communication. Primary (disk) and Secondary (backup) file based storage provision.
2013/2014 And Beyond
with the inclusion of the direct,
wind towers per year.
indirect and induced impact.
The developmental impacts
The impact on the Eastern Cape
can be viewed in the context
Also, lobbying for key priority projects remains an active part
Provincial GDP is 0.16 per cent
of the enabling infrastructure
of the CDC’s goals to attract major investment into the Coega IDZ.
with the total number of jobs
that unlocks the wind tower
created during the construction
A number of investors are being courted in pursuit of the annual target of signing eight new investors.
An oil refinery, Project Mthombo, led by PetroSA;
and operational phases sitting
is pivotal, particularly for the
Renewable energy projects; and
at 1951, of which 23 per cent
Coega IDZ and the integrated
Combined Cycle Gas Turbine power station.
will be as a result of operational
activity. The benefits to the local
deep-water port, logistics, and
economy will penetrate beyond
freight transport solutions) that
the local skilled jobs and training
links to downstream industry
to include logistics opportunities
creation for enterprises and
service providers. The CDC
When Will The Current DCD Wind Tower Factory Project Be Completed? The wind tower manufacturing facility is a joint initiative between
the DCD Group, the Industrial Development Corporation (IDC) and
believes that DCD’s investment
the CDC. DCD Wind Towers officially started construction work
a new industry in the Eastern
will assist in complementing the
on its R300-million, 23 000m2 wind tower manufacturing facility in
Cape. The facility is expected
overall strategy of the national
March 2013. The macro-economic impact of the total investment
to create close to 200 jobs, and
within IDZ will be R239-million for construction and operation,
produce between 110 and 120
primary energy sources.
The Coega IDZ already offers the best of the best and is South Africa’s premier investment destination. This is built into the IDZ offering, which is uniquely geared to ensure competitiveness and quality – not only in terms of services but also infrastructure and spatial planning to enhance IDZ investors’ competitiveness and supply chain linkages and integration, while lowering the costs of doing business and maximizing incentive support.
COEGA DEV CORP 0027 41 403 0400 WWW.COEGA.CO.ZA