A total of 84% of companies that have invested in the Coega Industrial Development Zone (IDZ) have seen an increase in their profits since starting operations in the zone, according to independent research conducted by Muffin Consulting on behalf of the IDZ.
Dr Ayanda Vilakazi, Coega Development Corporation (CDC) unit head marketing: brand and corporate communications, said: “We are pleased by the findings of the report, which states that benefits from investment in the Coega IDZ can be felt at household level.”
He commented that the Coega IDZ had over 36 operational investors with a combined investment value of over R6.4 billion. “In addition there are six investors currently busy with construction, five of which are due to complete construction in 2017,” said Vilakazi.
The Muffin report further showed that over 85% of investors had increased their workforce since opening in the IDZ, and 62% had expanded their factories.
More than 90% of operational investors described the IDZ and its logistics park as the ideal location for industries. Furthermore, the report shows that the total private sector investment in the Coega IDZ accounts for approximately 70% of the total investment value at Coega.
Vilakazi added that government incentives were also contributing to the success of the companies in the IDZ, with 77% of companies surveyed either having accessed or in the process of accessing incentives.
“Incentives do work. The report found that sector-specific incentives were the most accessed by investors, followed by the benefits of operating in a customs-controlled area and tax incentives,” he said.
Vilakazi pointed out that the spin-off from the investments at Coega had been an increase in the demand for local goods and services in the Eastern Cape, with over 50% of companies surveyed sourcing more than 78% of their inputs locally.
