The Coega Development Corporation (CDC) — developer and operator of the Coega Special Economic Zone (SEZ) — has signed four new investors that are estimated to be valued in excess of R49 million, and are expected to create about 100 new jobs.
CDC Unit Head of Marketing, Brand and Communications, Dr Ayanda Vilakazi, said the newly signed investors are an illustration of the dedication and hard work by various CDC stakeholders, amid a very difficult operating environment, to ensure the organisation’s investment promotion initiatives bear fruit.
“While operating in a difficult economic environment due to the COVID-19 pandemic, the CDC has retained its 45 current operational investors and also brought home new ones,” Vilakazi said on Monday.
According to the United Nations Conference on Trade and Development (UNCTAD), as reported in the media, global foreign direct investment (FDI) collapsed in 2020, decreasing by 42% to an estimated $859 billion, compared with about $1.5 trillion in 2019.
In addition, the reports state that FDI finished the year more than 30% below the trough after the global financial crisis in 2009 and was back at a level last seen in the 1990s.
“However, the decline in developing economies was relatively less than that in developed countries at 12%, to an estimated $616 billion. UNCTAD expects the global FDI trend to remain weak in 2021,” the CDC said.
The Coega SEZ has focused on diversifying the economy through attracting investors from the multiple targeted investment sectors, such as the Business Process Outsourcing, Energy and Automotive sectors.
The organisation continues on this trajectory, with the attainment of the new investors in a multiple sectors, such as manufacturing and logistics.
“The achievement of four new investors signed this year follows from the corporate performance results of the 2019/20 financial year, where the CDC created a total of 14 240 jobs (5 934 construction jobs and a further 8 306 operational jobs).
“In addition, the organsation signed new 12 investors last year valued at R719 million. Over the past five years, 77 new investors were signed, valued at R42.84 billion.
“Moreover, 6 591 people received training last year from the CDC, which includes those achieved through the Coega Development Foundation,” Vilakazi said.