Coega welcomes Budget speech - published 23 Feb 2017
PRESENTING BUDGET SPEECH: Minister Pravin Gordhan – Minister of Finance presenting the Budget Speech.
Coega welcomes Budget speech
Encouraged by the R4.2 billion for industrial infrastructure in special economic zones and industrial parks
“The Coega Development Corporation (CDC) welcomes the Honourable Minister of Finance Pravin Gordhan, Budget speech delivered this afternoon,” said Dr Ayanda Vilakazi, CDC Head of Marketing and Communications.
In support of the government’s approach towards industrialisation, economic transformation, and inclusive growth, the CDC has continued to ensure that it demonstrates its commitment towards its vision to be the leading catalyst for championing of the socio-economic growth in the Eastern Cape and South Africa at large.
The CDC welcomes the Minister’s comments on:
· Continuing with the independent power producer programme, both in renewables and to take advantage of gas investment opportunities given the CDC’s strategy to be aligned with the government strategy on the energy programme.
· Further strengthening of economic regulatory functions and streamlining investment approval processes.
In addition, the CDC is pleased that:
· The 2017 budget allocates funds over the MTEF period to support economic growth in various programmes:
o R4.2 billion for industrial infrastructure in special economic zones and industrial parks
The CDC through its Industrial Development Zone is a leader in investment attraction and has in the last 5 years managed to sign investment deals with 61 new investors, with a combined investment value of R35.8 billion.
The Coega IDZ, as a Foreign Direct Investment destination of choice in Africa, is excited by the ample opportunities that could emanate from the SEZ incentives and the integrated approach to investment promotion.
Small Micro Medium Enterprises (SMME)
SMMEs are recognised as important contributors to job creation and stimulators of economic growth. The CDC continues to be trend setter and has achieved 37.2% in 2015/2016 FY in procurement spend translating to over 128 SMMEs benefiting from CDC’s contracts with an estimated contract value of R180-million. The CDC welcomes the Minister comments allocation of R3.9 billion is provided for small, medium and micro enterprises and cooperatives, as the allocation will go a long in growing the economy of the country and the creation of much needed jobs.
Further highlights from the CDC in the FY2015/16
· Beijing Automobile International Corporation (R11.5 billion) - automotive plant where the clearing of bushes has already created 63 localised construction jobs. BAIC is expected to create 2,500 operational jobs;
· Dynamic Commodities (R11.5 million) – food processing and manufacturer of frozen fruits - 62 localised construction jobs;
· General Warehouse (R19-million) - Manufacturing warehouse - 236 localised jobs
· Q-Plas (R32-million) – Automotive Component Manufacturing - 76 localised jobs
· Redisa (R41-million) – Tyre Testing Facility – 188 localised jobs
· Corro-master (R90-million) – Packaging Manufactures – 76 localised jobs
· Lension (R16.5 million) – Plastic bags Manufacturing. – 90 localised jobs