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Coega bolstered by an improved Business Confidence Index

Dec 7, 2017
Coega bolstered by an improved Business Confidence Index

The Coega Development Corporation (CDC) announced on Thursday, that it welcomes the improved business confidence by 3.4 index points to 93.0 from its lowest level thus far in August 2017.

“What is even more encouraging is the higher merchandise import and export volumes making notable contributions to the monthly improvement of the Business Confidence Index (BCI) in September 2017,” says Dr Ayanda Vilakazi, CDC Unit Head: Marketing, Brand and Corporate Communications.

The Coega Special Economic Zone (SEZ), which is home to no less than five (5), export orientated companies – Agni Steel SA, Dynamic Commodities, Cerebos, FAW & ISUZU (soon to add BAIC SA) has seen the CDC closing the 2017 calendar year with a record high of forty one (41) operating investors.

According to an independent research conducted by Muffin Consulting, the impact by investors in the Coega SEZ includes the enabling of payment of R1.6 billion in national taxes. A further dispersement of R1.38 billion through the balance of payments to workers, with a subsequent R2.2 billion on households. 

As a game changer in the Eastern Cape (EC) province, the Coega SEZ has an impact of approximately R3.9 billion in the EC GDP and over sixty nine percent (69%) of the companies source seventy percent (70%) or more of their inputs locally.

“One of the statistics we are most proud of is the Coega SEZ’s contribution towards youth unemployment. Over sixty four percent (64%) of the 7575 operationally employed people in the Coega SEZ are between the ages of 18 – 35 years old,” concludes Dr Vilakazi.  

Image: UNDER CONSTRUCTION:business confidence in the Coega SEZ is leading to investor growth and investment expansions. Currently the CDC has over four (4) projects under construction, which include BAIC, Osho Cement, MM Engineering and the Customs Control Area in Zone 1 accumulatively valued at R12 billion. Kenako Concrete R71 million investment recently became operational.