The Coega Development Corporation signed a R11 billion ($821million) Investment with the Beijing Automobile International Corporation (BAIC), the biggest automotive investment in Africa in the last 40 years.
The BAIC investment is an outcome of the Forum on China-Africa Cooperation (FOCAC) that was held in Johannesburg in December 2015, where South Africa’s President Jacob Zuma and Chinese Prime Minister Xi Jinping signed no less than 26 bilateral agreements valued at approximately R100 billion.
According Minister of Trade and Industry, Dr Rob Davies the investment is significant and deepens our economic relationship with China.
“The size of this investment demonstrates confidence by China and confidence in South Africa as an investment destination. The investment is strategic and is a major project in terms of our bilateral relationship and a key project supported by the Inter Ministerial Committee on Investment”, says Davies.
Minister Davies adds that the project positions the Eastern Cape as an automotive hub and has the potential of deepening the component supply chain, job creation and economic development.
Why the Coega IDZ?
The CDC, which celebrates 16 years of existence, has empowered growth and development through driving sustainable socio-economic development in the Eastern Cape and the country at large.
The Coega IDZ is strategically located adjacent to the deep water Port of Ngqura and a few kilometres away from PE Port – with a container, car, break-bulk and bulk terminals. In addition, the CDC has easy access to rail, road, air and sea network as it is linked to all major in land road transport routes. The Coega IDZ’s infrastructure is relatively new when compared to older municipal infrastructure and other IDZ’s in the country.
The CDC has achieved results that have not been seen before by any other IDZ in Southern Africa; where in the last 4 years the organisation has attracted and signed 54 new investors with a combined investment value of R31.93-billion.
The new Special Economic Zone (SEZ) Act incentive scheme has gone a long way in ensuring that it addresses investor interest and needs. In addition, the Coega IDZ is the only IDZ to be designated with a custom control area (CCA). The logistics area in the Coega IDZ – Zone 1, and Zone 2 are both designated CCA’s, enabling qualifying investors to benefit from customs duty and VAT incentives