The Coega Industrial Development Zone (Coega IDZ), located close to the bustling Nelson Mandela Bay Metropolitan Municipality, is South Africa’s foremost investment hotspot for industries with a global perspective.
Developed and managed by the Coega Development Corporation (CDC), this pioneering multi-billion Rand project aims to drive local and foreign direct investments in export-oriented industries - positioning South Africa as the hub for Southern African trade.
The Coega IDZ, while offering global competitiveness through world-class infrastructure, tax incentives, rebates and a duty-free zone, is purpose-built for manufacturing including beneficiation of export goods, investment and local socio-economic growth - skills development and job creation.
Adjoining this, the largest IDZ in the Southern Hemisphere, is the Port of Ngqura - a modern multi-user deepwater harbour developed by the National Ports Authority of SA as a gateway to global markets.
The Coega IDZ and the deepwater Port of Ngqura will remain catalysts for investment and local development.
Coega focuses on offering the best solutions to prospective investors by assisting them every step of the way to ensure projects move from concept to completion. Coega has successfully attracted a health mix of both local and international investors; and moved from the initial anchor tenant approach to focusing on strategically attracting a range of medium, large and mega projects to diversify and strengthen the industrial base.
The achievements and successes of the Coega IDZ over the past couple of years have proven that a mixed approach to attracting investors is working. That said, however, a number of catalytic big projects valued at over R75-billion, are on the horizon and include PetroSA’s Project Mthombo which will enhance the attractiveness of the Coega IDZ as an investment destination and therefore future investment trends.
The Coega IDZ is inherently an attractive place for investors wanting to establish operations in South Africa. The IDZ offers the following key features:
• Clustering for synergy and supply chain integration
• Facilitation of access to government incentives (local, provincial and national). The suite of incentives includes and is not limited to one-time and/ or recurring grants for:
o Skills development
o Export marketing (new market development)
o Job creation (the national and provincial grants can be accessed concurrently)
o Foreign investment (compensated for the qualifying costs of moving new machinery and equipment [excluding vehicles] from abroad)
o Investing/re-investing in productive assets
o Black business development
• Customized solutions for investors e.g. serviced sites, fit-for purpose buildings
• The IDZ is served by two ports, and characterised by close distance to the deep water Port of Ngqura, which is in Zone 1 of the Coega IDZ. The Port of Port Elizabeth is 20kms away from the 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
• ICT services base infrastructure: infrastructure which allows for the connectivity of
voice /data/internet and video services up to the tenant premise edge. These services are described in Level One. Provision of shared broadband Internet connectivity by Coega Communication. Primary (disk) and Secondary (backup) file based storage provision
• Support with Safety, Health, Environment and Quality services, for example EIA process.
Top reasons to invest in Coega IDZ are:
Global competitiveness through incentives
Tax incentives, rebates and customs controlled areas.
Built for business
Business location purpose-built for manufacturing including beneficiation of export goods, investment and local socio-economic growth - skills development and job creation.
Ease of doing business
South Africa is a low-cost and top location for ease of doing business. The general ease of doing business is enhanced by the IDZ advantages and incentives.
South Africa is among the top ten globally for securing investor protection and sound fiscal governance. South Africa has a stable economy and market-oriented business culture.
Strategic location at the crossroads of east- west trade routes globally and within Africa; presence of world’s major shipping and logistics companies; adjacent to a modern, deep-water port with container, bulk and break-bulk terminals.
Availability of land customised for heavy, medium and light industries, serviced sites and fast-track construction of factories, warehouses and office complexes on 11,500 hectares of land.
Special Customs Controlled Area (CCA)
Zones 1 and 2 have been designed as a CCA to comply with SARS requirements. The CCA status will benefit investors like FAW in the automotive sector.