IDZs to drive growth in faltering Eastern Cape economy

The Eastern Cape government is looking to the East London and Coega Industrial Development Zones (IDZs) to boost exports out of the province. Continued economic stagnation in Europe has had a direct effect on the province’s economy, according to Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) MEC Sakhumzi Somnyo. “The Eastern Cape’s total export value deteriorated from R34.2 billion in 2011 to R29.5 billion in 2012. This was alongside an increase in total imports, resulting in a provincial trade deficit,” he said when presenting his department’s budget in the Bhisho legislature recently. He singled out the two IDZs and the motor industry as the main economic success stories in the province. “The Eastern Cape Development Corporation (ECDC) and Industrial Development Zones (IDZs) continued to be the main contributors to investment and job creation in the province. “Although the investment climate is subdued, production of new vehicles has accelerated investments in the automotive sector by original equipment manufacturers (OEM) in the province. “Over R600 million was invested by the province into the two IDZs between 2009 and 2013. In the last term these three entities were able to attract over 80 investors in the province with an investment value of over R9 billion and create in excess of 60 000 job opportunities,” he said.