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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 – including major foreign direct investors – moving into the Coega IDZ, a purpose-built industrial area equipped with world-class infrastructure to attract and retain local and international investment.


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

• Training/academic;

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

• Chemicals;

and electricity shortages, delaying committed projects in the wake of

• Energy;

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


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

performance excellence.

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



aside is



for for







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

The Staff

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.


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

These include:

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


value thus



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.




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