Ricochet News

CDC Announces Plan for Agro-Processing Multi-User Facility for Eastern Cape

Jan 14, 2015
CDC Announces Plan for Agro-Processing Multi-User Facility for Eastern Cape

The Coega Development Corporation (CDC) has announced plans for the development of an R86 million agro-processing multi-user facility to be located in the Coega IDZ.

The Corporation says in a statement that the 7 800 square metre facility will be located on seven hectares of land in Zone 3 and will consist of smaller units ranging from between 350 and 1 500 square metres under one roof with shared communal infrastructure.

The CDC says that the facility “will enable SMMEs and larger more established companies to expand their processing and value-addition activities in the Eastern Cape.

CDC Agro-Processing Business Development Manager Keith du Plessis says interest in the Coega IDZ and Eastern Cape as an agro-processing location has been “positive.

“We are currently in talks with several domestic and international investors that have expressed interest, he says, adding that the prospective investors are involved in the processing of coffee, cereals, confectionary, proteins and energy supplements and animal feeds.”

Du Plessis said there had also been interest from companies in biofuels.

He said investment interest “is driven by the drastic cost reductions offered by clustering and shared infrastructure….but also other economic and geographical advantages”

“Enhanced integration into the supply chain, proximity to the deep-water container handling terminal at the Port of Ngqura for global exports and access to transport for just-in-time delivery to domestic markets is further driving investment interest in the Coega IDZ.”

Du Plessis points to the fact that the IDZ is strategically located in the western region’s “diverse agricultural economy,” which had 20 “ideal” agro-processing products and crops that included citrus, deciduous fruits, dairy, vegetables, live-stock, honeybush tea and aquaculture produce.

The IDZ is already home to several operational agro-processing ventures and food packaging, storage and logistic companies such as Famous Brands and Dynamic Commodities. - MetroMinutes.


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