Ricochet News

Coega welcomes Pravin Gordhan's mid-term budget policy speech

Oct 27, 2016
Coega welcomes Pravin Gordhan's mid-term budget policy speech

Encouraged by the 1.7 per cent expected growth for next year

“The Coega Development Corporation (CDC) welcomes the Honourable Minister of Finance Pravin Gordhan, Medium Term Budget Policy speech delivered this afternoon,” said Dr Ayanda Vilakazi, CDC Head of Marketing and Communications.

Furthermore the CDC warmly welcomes the Minsters mention of the role the Coega Industrial Development Zone (IDZ) is playing in the Energy mix through the allocation of a 1000 MW as part of the gas-to-power programme.

The gas-to-power project is key for energy security, diversity and is in line with the vision of the CDC of being the leading catalyst in championing of socio-economic growth in the Eastern Cape and country at large.

As indicated by the Minister that, “though investment has still to gain momentum, there have been a number of expansion projects announced in mining and manufacturing this year”. The CDC is proud to be amongst those State Owned Entities (SOEs) who seamlessly continue contributing positively towards Foreign Direct Investment (FDI) through our latest investor acquisition i.e. the BAIC investment of R11 billion to be located in Zone 1 of the Coega IDZ, which  is a Customs Controlled Area (CCA).

According to a study by the CDC research unit - Global Trends in Foreign Direct Investment,released this month. Foreign direct investment (FDI) increased by 38 percent to reach US$1.76 trillion in 2015, the highest level since the global economic crisis of 2008, despite the global economic performance and increased geopolitical uncertainty.

Cross-border mergers and acquisition (M&As), as the principal factor behind the global rebound, have significantly increased from US$432 billion in 2014 to US$721 billion in 2015.

Lastly, as mentioned by the Minister that inclusive growth requires concerted effort to improve the investment environment, particularly for export-oriented and more employment-intensive manufacturing, the CDC in earnest continues on this trend.