Investment translating into jobs in the Coega IDZ - published 7 Feb 2017
EMPLOYMENT CREATOR –WNS call centre an example of the many investors in the Coega Industrial Development Zone (IDZ) which employs over 800 youth from within and around the Nelson Mandela Bay. The Coega IDZ currently hosts over 36 operational investors who have contributed R6.4 billion in the value of investment in the Coega IDZ.
Investment translating into jobs in the Coega IDZ
Over 80% of companies which have invested in the Coega Industrial Development Zone (IDZ) have seen an increase in their profits since starting operations in the zone, with the benefits being felt throughout the Nelson Mandela Metro and the rest of the province, according to research conducted by Muffin Consulting.
According to Dr Ayanda Vilakazi, Coega Development Corporation (CDC) unit head marketing, brand and corporate communications, the Coega IDZ has benefited, and continues to do so, the local economy of the Nelson Mandela Bay Municipality and Eastern Cape at large.
“We are pleased by the findings of the report, which states that benefits from investment in the Coega IDZ can be felt at household level,” says Vilakazi.
He adds that the Coega IDZ has over 36 operational investors with a combined investment value of over R6.4 billion. In addition there are six investors currently busy with construction, five of which are due to complete construction in 2017. These are amongst the 17 investors whom the CDC has signed in the 2015/16 financial year.
The report shows that 84% of the companies invested in the Coega IDZ reported an increase in profitability. In addition, over 85% of investors have increased their workforce since opening in the IDZ, and 62% have expanded their factories. More than 90% of operational investors described the IDZ and its logistics park as the ideal location for industries.
“This very high satisfaction level of investors in the Coega IDZ affirms Coega as an ideal location for businesses from around the Globe,” says Vilakazi. He further adds that investors have ploughed their own money into the IDZ, with 45% of projects being self-funded.
Moreover, the report shows that the total private sector investment in the Coega IDZ accounts for approximately 70% of the total investment value at Coega, with government agencies, such as IDC and others providing the balance.
Government incentives are also contributing to the success of the companies in the IDZ, with the 77% companies surveyed either having accessed or being in the process of accessing incentives.
“Incentives do work. The report found that sector-specific incentives were the most accessed by investors, followed by the benefits of operating in a customs- controlled area and tax incentives,” says Vilakazi.
He adds that the spin-off from the investments at Coega has been an increase in the demand for local goods and services in Eastern Cape, with over 50% of companies surveyed sourcing more than 78% of their inputs locally.