Coega on fire in 2014

DECEMBER 17, 2014

The CDC looks at the top eight peaks of progress this year

DESPITE global economic challenges and slower growth, the Coega Development Corporation (CDC) has had a “significant and good year,” the company said today.

In 2014, four major Coega IDZ investors completed construction of their new plants and became operational.  DCD Wind Towers launched its R300-million, 23 000m² wind tower manufacturing facility in March this year in Zone 3 while Agni Steels launched a R400-million smelter facility in May in Zone 6.

President Jacob Zuma attended the launch of FAW’s phase 1, R600-million truck assembly plant in July in Zone 2, celebrating with Coega an ongoing commitment to Chinese investment in the country.

Recently, Air Products South Africa launched its industrial gas air separation unit (ASU) in Zone 3 – providing a needed utility and stable supply of gas to the IDZ, Nelson Mandela Bay and Eastern Cape industrial clients.

Meanwhile several construction projects in the IDZ collectively worth R4-billion are currently taking and will reach completion next year.

Projects currently under construction in the Coega IDZ include the Dedisa Peaking Power Plant (R3.5-billion), the Digistics Logistics expansion (R32-million), ID Logistics (R53-million), the cold storage facility for Vector Logistics (R130-million), the UTi Distribution Centre (R30-million) and Afrox’s air separation unit (R300-million). 

Dr Ayanda Vilakazi, CDC head of marketing and communications said “the year has been tough but rewarding.”

“There were some major highlights this year and quite a lot of significant milestones, notwithstanding hard work and a number of challenges. The challenges we faced made us more innovative and dynamic. Despite the pressure on the local, regional and global economies, Coega continues to perform,” Dr Vilakazi said.

The CDC this week took a quick tour de force of the eight indicators of its organisational success in 2014.

1.            In May, the Coega IDZ announced it became the first IDZ on the African continent to attract double-digit investment in one financial year – a historic achievement for a South African IDZ. Ten investment projects worth R1,84 billion (US$164 million) were signed and secured for the Coega IDZ in FY 2013/2014.

2.            In July, leading Chinese automotive manufacturer FAW launched its Phase 1 of its R600-million assembly plant in Zone 2 of the IDZ and the plant was opened by South African President Jacob Zuma.

3.            In August, a current IDZ investor, Powerway Renewable Energy, a solar component manufacturer, signed an engineering procurement construction (EPC) solar power contract, valued at R1.5-million (144 000 USD), with Weihai China Glass Solar Company to build a small ground-mounted solar project on the site of the CDC headquarters. Once installed the mini-farm will have a capacity of approximately 48kW.

4.            In August, the CDC announced plans for the development of a R2-billion (US$ 200 million) aqua-farming facility on 300 hectares of land in Zone 10 of the IDZ. In September the CDC appointed an Environmental Assessment Practitioner (EAP) to conduct the Environmental Impact Assessment (EIA) which will take about 12 months to complete.

5.            The CDC – as an implementing agent for the Department of Education – announced in September that it delivered 75 construction and refurbishment projects, including emergency schools, early childhood centres, and technical workshops which it handed over to the Department of Basic Education and the Eastern Cape Department of Education.

6.            In October the CDC announced it will establish a Multi Original Equipment Manufacturers (OEM) complex for the automotive assembly and components manufacturing sectors in Zone 2 of the Coega IDZ.  The CDC has earmarked 306 hectares of land for automotive manufacturing industrial activity through its recently unveiled five year strategic plan, which will embrace an OEM industrial clustering approach. Since the announcement, the CDC is busy with negotiations with potential investors and also with requests for proposals for the shared services such as the Vehicle Consolidation and Distribution Centre.

7.            In November, the CDC handed over level 1 Black Economic Empowerment certificates to 500 small, micro and medium-sized enterprises (SMMEs) who took part in the Black Economic Empowerment Competitiveness Improvement Programme (BEECIP). A total of 200 SMME’s in Kwa-Zulu Natal, and 300 SMME’s in the Eastern Cape, where the CDC is an implementing agent for government departments in expediting service delivery, were awarded certificates.

8.            The CDC also won several awards this year:

  • In November the CDC won the prestigious National Business Award - Infrastructure Development and Top Performing Public Service awards – along with its head of marketing and communications, Dr Ayanda Vilakazi, who was named the country’s 2014/2015 Top Business Executive of the Year (under forty years).  
  • In November the CDC won a joint Gold Award with the Port of Ngqura for ‘a Medium Organisation with a High Environmental Impact’ in the acclaimed Top Green Organisation Awards ceremony. The awards were hosted by the Eastern Cape Development Corporation (ECDC), Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) in partnership with the Institute of Waste Management of Southern Africa (IWMSA).
  • In October the CDC took the Top Employers South Africa 2015 in Public Sector by the Top Employers Institute. The CDC has been awarded the exclusive Top Employers South Africa 2015 certification. The Top Employers Institute globally certifies excellence in the conditions that employers create for their people. It has just announced the results of this year’s research into the employee conditions of significant employers in South Africa.
  • In August the CDC won the Best Provider of Services in the annual Exporters Club Award. The Exporters Club awards were established to promote industry captains and recognize excellence within the industry.
  • In March the CDC won the Most Empowered Enterprise (SA Premier Business Awards, 2014). The award encourages and promotes compliance with Broad-Based Black Economic Empowerment (B-BBEE) and speaks to the development of small, micro and medium enterprises (SMMEs), promoting adherence to the codes of good practice, socio-economic development as well as adherence to procurement codes and policies.
  • In April it won the Job Creation Award at the 13th Annual Oliver Empowerment Awards. The CDC was also one of four recipients of a RAIZCORP bursary to the value of R250 000. The bursary is to be awarded to a black business owner from the CDC’s supply chain. The Oliver Empowerment Job Creation Award is given to an organisation that has contributed positively toward the alleviation of poverty in South Africa through the sustainable creation of meaningful employment.

Another highlight for CDC was when its CEO Mninawe ‘’Pepi’’ Silinga won the Nelson Mandela Metropolitan University’s Council Prestige Award.

INDELIBLE MARK IN EASTERN CAPE: The Coega Development Corporation (CDC) CEO Mninawe ‘’Pepi’’ Silinga, last week, was honoured for his formidable leadership in shaping the province’s economy with his vision of the Coega IDZ. This prestigious award, hosted by the Nelson Mandela Metropolitan University’s Council, recognises the commitment to pursue social equality and justice as well as for formidable leadership in igniting the vision of vibrant socio-economic growth in the province. The award is made to anyone who has rendered distinguished services that have made a significant impact on the wider local community in any field which supports the social and/or educational mission of the university. Over the past 15 years Silinga has steadfastly guided Coega through the good times and the bad. Silinga is a rigid leader in his beliefs but flexible in his execution, an approach that has seen him become one of the longest serving chief executives of a state-owned enterprise.

“Silinga is dedicated to seeing Coega come to life. He has the understanding of history and original vision to keep the course and to ensure the legacy of projects of this nature,” Dr Vilakazi said.

The CDC also received an unqualified audit from the auditor general (AG) which mean the AG was satisfied with the controls and processes of the organisation as well as the governance, which complies with the Public Finance Management Act (PFMA) and other legislation on financial management and governance.

“All things considered, we had a good reason to celebrate this year. Of course, we thank our investors, staff, stakeholders and partners who made these achievements possible and look forward to another successful year as we approach the end of the financial year on the 31st of March 2015.

“Last, but certainly not least, we thank the Nelson Mandela Bay communities for their continued support of the Coega Project and commitment to see the organisation succeed.  The Nelson Mandela Bay Business Chamber has also been a great supporter of the Coega project and we extend our heartfelt gratitude to their CEO, Kevin Hustler,” Dr Vilakazi added.