Ricochet News

Coega investment portfolio expected to reach R200 billion within two years

NOVEMBER 18, 2014
Coega investment portfolio expected to reach R200 billion within two years

The Coega Development Corporation’s investment portfolio is expected to reach R200 billion within the next two years Business Development Executive Manager Christopher Mashigo says in the Corporation’s Integrated Annual Report 2013/14.

Mashigo says that the CDC will be operating “within a new context,” mainly as a result of the enactment of the Special Economic Zones (SEZ) Act and the end of a five-year rolling strategy in 2013/14”.

He says the time is “ripe for a reviewed approach, building on the momentum and achievements of the past years”.

In addition, he notes, it is time “to differentiate our offering from other competing IDZs and implementing agents,” which means “some slight adjustments to our strategic course”.

Mashigo points out that the future growth of the IDZ and concomitant job creation “will be largely dependent on allocations from the SEZ Fund and the work of the centralised SEZ investment promotion unit”.

He explains that the external services arm of the CDC will now have a “dual role of providing the bulk of funding for CDC’s operations as well as the funding to grow the Eastern Cape’s own capabilities in conjunction with client, mainly government departments.

“The nett revenue generated from these operations is reinvested into the IDZ operations in order to grow investors, as well as the pipeline.”

Mashigo says the external services division “will continue to be strengthened as we vigorously pursue IDZ investments”.

He states that to date the CDC has projects at the negotiation stage worth R8.1 billion, while those under feasibility are valued at R116.3 billion, with the total investment portfolio as at March this year R151 billion.

Mashigo stresses that the “overarching imperative” for the Corporation, as has been the case for some years, is self-funding.

“Great strides have been made in this regard but new and possibly radical funding and revenue streams and models will be put in place and that is a key focus as the CDC develops the next rolling five-year strategy. - metrominutes