Coega’s IDZ sees a historic 8% revenue increase - CNBC Africa

Coega’s IDZ sees a historic 8% revenue increase


by Trust Matsilele 0

Coega’s IDZ sees a historic 8% revenue increase. PHOTOS: stfrancisconnect

The organisation's total revenue surged from 673 million rand to 725 million rand, representing a year-on-year growth of eight per cent.

“The CDC’s self-generated revenue this year grew by 29 per cent to 383 million rand, when compared to the previous year, and, for the first time since the CDC’s inception, self-generated revenue was higher than state funding by 12 per cent,” said the group.

Coega is regarded as the leader in stimulating socio-economic growth in South Africa.

The Coega IDZ became the first IDZ on the African continent to attract double-digit investment in one financial year.

Ten investment projects worth 1.8 billion rand were signed and secured for the Coega IDZ in financial year 2013/2014.

The largest investments were recorded in the renewable energy sector with 793 million rand followed by the chemical sector with 500 million rand, and the automotive sector with 423 million rand. 

(READ MORE: South, East Africa powering renewable energy drive)

The organisation is buoyant over the results and said it was a reflection of a group on a strong growth trajectory.

“We have gone beyond the call of duty to break through various barriers to achieve remarkable milestones in the context of difficult global investment climate,” said CDC Business Development Executive Manage, Christopher Mashigo.

“This speaks to an organisation that is maturing and building on sustained momentum, but it is also a testament to excellent teamwork.”

CDC Head of Marketing and Communication, Ayanda Vilakazi said the IDZ was poised to become a case study for industrial development excellence and effective operations in an African context.

“We can easily be compared to other IDZ’s in the world and stand in a class of our own,” said Vilakazi.

“The CDC is forecasted to reach 30 operational investors by the end of the 2014/15 FY, making Coega the first IDZ to reach 30 investors.”

Vilakazi added that the group was already looking at making the new financial year another year of ground-breaking achievements.

In addition to the successes in investment promotion, the CDC contributed significantly to job creation and skills development during FY 2013/2014.

(READ MORE: Investment key to reviving Africa’s high-employment industries)

In this period, 16 131 individuals benefited both directly and indirectly from employment as a result of both Coega IDZ and other infrastructure projects.