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Coega is the Only True Gateway to Africa Markets and Hub for Major FDI Proj - published 30 May 2019



READY FOR ACTION: HELLA building located in Zone 2 of the Coega SEZ will be used to launch the company to the rest of Africa, showing that the Coega SEZ is truly the Gateway to African markets.

Coega is the Only True Gateway to African Markets and Hub for Major FDI Projects in Southern Africa  –  Coega SEZ spearheading Foreign Direct Investment in Southern Africa
 
The recently released fDi REPORT 2019 on Global Greenfield Investment Trends, highlighted significant flow in Foreign Direct Investment (FDI) in the Middle East and the rest of Africa.

The report reveals that FDI into the Middle East remained stable by number of projects with a 2% increase to 586, while capital investment increased 64% to $61.1bn. Africa on the other hand experienced an increase in the number of projects of 12% to 667 in 2018 but a 9% decline in capital investment to $74.2bn.

With a target to attract $100 billion in FDI by 2023, His Excellency President Ramaphosa has made a call to all SEZs in the country to roll-up their sleeves and get their hands dirty in order to assist realise the target.  The Coega SEZ is responding very well to this call by the President. 

“Since inception in 1999, the Coega SEZ has attracted 45 operational investors, who have invested over R7.979 billion.  It is projected that by year 2019/20, this number will soar to 50 with R8, 24 billion in Foreign Direct Investment (FDI), thus making the Coega SEZ the most successful and leading SEZ in Africa.

As the preferred destination for FDI in Africa, the Coega SEZ currently hosts the largest square mile of Chinese automotive investment, for example, the two automotive giants in First Automotive Works (FAW) & BAIC SA, have accumulatively invested R11.6 billion in FDI,” says Dr. Ayanda Vilakazi, CDC Head of Marketing, Brand & Communications.

First Automotive Works (FAW), situated in zone 2 of the SEZ is a R600 million truck assembly plant, and currently SA’s second biggest truck exporter. Recently, the company launched its 6. l30 FL medium truck, soon after releasing an 8. l40 heavy truck range, expanding their product line to serve the local and African markets, proving that Coega SEZ is truly the Gateway to African markets.

The other Chinese investor is a R11 billion BAIC SA plant, which is the single largest investment in the whole of Africa in 40 years, has already created over 1446 jobs during the construction phase. The plant is expected to start production towards the end of 2019.  Once operational, the plant is expected to have an annual production capacity of 100 000 passenger cars.

Another FDI project in the Energy sector is the Dedisa Power Peaking Plant, a 342MW Power Peaking Plant valued at R3.5 billion in Foreign Direct Investment. The project has created over 1490 jobs during its construction phase and has been supplying electricity to the national grid since 2015.

A more recent addition is HELLA – a German-based lighting and electronics specialist has invested a further R53 million into the Coega SEZ. HELLA announced its intentions to embark on a strategic decision with their operations in Sub-Saharan Africa that will enable them to serve as the gateway into Africa, cementing Coega’s position as a true Gateway to African markets, concludes Dr. Vilakazi.
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