Coega's expectations from President Zuma's SONA 2016 address

FEBRUARY 11, 2016

The CDC, one of the leading Industrial Development Zones / Special Economic Zones in South Africa (SA) and African continent looks forward to the State of the Nation Address (SONA) 2016.

“The CDC is optimistic; our anticipation of the President’s speech is pinned on our eagerness in hearing progress on projects like the Oil Refinery (Mthombo) and other major game changer projects announced at last year’s SONA address,” said Dr Ayanda Vilakazi, CDC unit head marketing and communications.

The CDC is aware of the weak global economy having an adverse effect on the economy of the country. SA has seen the rand depreciate to R15/$1 (US).

In addition, even though the integrated investment projection from SA is positive the United Nations Conference (UNC) on Trade & Development (2015) announced that Foreign Direct Investment (FDI) into South Africa in 2015 dropped by 74%. Furthermore the lower price of oil has not benefited SA economy as a result of the volatility of the SA rand.

“Some of the statistics that we face daily seem to paint an insurmountable challenge for the country. However, as the CDC we remain resolute in contributing positively to the needs of the republic,” added Dr Vilakazi.

In the 2014/2015 period, CDC created 14 765 jobs (62 142 since inception), through projects in the IDZ and its infrastructure development programme. Through job creation the CDC touched over 6 million people equating to about 10% of the country’s population. In addition, the CDC had 31 operational investors (YTD 33) with a combined investment value of R6.44-billion as at 31 March 2015.

Just recently, projects at the IDZ that became operational include WNS – call centre situated at the Business Process Outsourcing (BPO) in the Coega IDZ, which afforded over 600 youths jobs. The Coega diary & Coega Cheese - a R25 million investment in zone 3 of the IDZ contributed to 350 number of jobs.

Lastly, the Dedisa Power Peaking Plant (PPP) - a R3.5 billion investment situated in zone 13 of the Coega IDZ created over 1490 jobs. The PPP plays a critical part in establishing a consistent supply of energy as it’s connected to the national grid. The plant has a maximum capacity of 342 MW Open Cycle Gas Turbine and is capable to converting to Gas.

“The above projects are an earnest contribution by the CDC in ensuring that the country is able to turn the tide around sooner than later,” adds Dr Vilakazi.

 

BEACON OF HOPE: The DEDISA Power Peaking Plant (PPP) a R3.5 billion investment situated in zone 13 of the Coega IDZ created over 1490 jobs. The plant has a maximum capacity of 342 MW Open Cycle Gas Turbine and is capable to convert to Gas. Pictured: (left to right) Bongani Gxilishe – HOD DEDEAT, CLLR Zukile Jodwana – MMC ECDTA NMB, Mert Aytug – Dedisa Construction Director, CLLR Bicks Ndoni – NMB Deputy Mayor, Sakhumzi Somyo – MEC DEDEAT, Bruno Stefano – Dedisa Project Manager and Pepi Silinga – CEO CDC.