annual report - coega · coega | 2008 | annual report outlook there is acknowledgement that...

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INDUSTRIAL DEVELOPMENT ZONEAND DEEPWATER PORT

South Africa’s new investment destination is gearing up for serious expansion by taking global trade

to the next level.

15 Major investments. R30 Billion in 3 years. Momentum is building…

V i s i o nTo be the preferred investment destination.

M i s s i o nTo provide a competitive investment location and a total business solution for customers and ensure sustainable economic development.

The Coega Industrial Development Zone (IDZ) initiative, located within Nelson Mandela

Bay (Port Elizabeth), is South Africa’s premier location for new industrial investments.

This multi-billion rand industrial development complex covers 11 000 hectares and

includes a new deepwater port.

The Coega Development Corporation (CDC) has experienced a phenomenal year in many respects. Following its vision, “to be the preferred investment destination”, the CDC has, against the odds, surpassed all expectations in the 2007/8 Financial Year. As such, the Coega Industrial Development Zone (IDZ) is well on its way to positioning South Africa as the platform for global manufacturing and export.

With an investment value that exceeds R30 billion and 15 signed investors, including Straits Chemicals, Afro-Asia and the Eastern Cape Biomass Fuel Pellets, the Coega IDZ is South Africa’s largest and fastest growing zone. Since its inception, the CDC has employed some 22 000 individuals, registered over 79 000 for employment, have invested over R31 million in training programmes and have awarded contracts to the value of over R1.3 billion. It covers 11 500 hectares of land and is a purpose-built industrial estate linked to an international R3.5 million port that leverages fixed direct investments in value-added and export-oriented manufacturing industries.

The Coega IDZ is equidistant from the major global markets and areas of supply of raw materials and components. As a result,

manufacturers and logistics companies operating in the Coega IDZ will benefit from the ebb and flow of global markets around the world.

A one stop investor service awaits tenants of the IDZ, simplifying the process of obtaining the necessary documentation to set up in the zone. Other services offered range from organizing work permits, application for incentives and any other investor requirements that can be fast tracked on behalf of investors.

Evidently, the multibillion-rand investment in South Africa’s economic infrastructure is gaining momentum and proving to be the country’s premier location for new industrial investments.

T h e C o e g a D e v e l o p m e n t C o r p o r a t i o n ( P t y ) L t d

C o n t e n t s >>>2008 ANNUAL REPORT

GENERAL OVERVIEWChairman’s Report 07CEO’s Report 13

PROFILESBoard of Directors 24Audit & Finance Sub-Committee 30

BUSINESS UNIT REPORTSBusiness Development Unit 35Coega Development Corporation Services Unit 39Human Capital Solutions Unit 43Infrastructure Development Unit 47Operations Unit 53Corporate Services Unit 57

CORPORATE GOVERNANCEThe Board of Directors & Sub-Committees 63Statement of Responsibility of the Board of Directors 65Attendance Schedule of Board & Sub-Committee Meetings 66Risk Management & Internal Controls 67Certificate by Company Secretary 68Report of the Audit & Finance Sub-Committee 69

FINANCIAL STATEMENTSIndependant Auditor’s Report 73Directors’ Report 75Balance Sheet 80Income Sheet 81Statement of Changes in Equity 82Cashflow Statement 83Notes 84

PROGRAMME PERFORMANCECoega Project Performance 105Other Financial Information 113

GLOSSARY 121

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ZONE 1North

ZONE 2

ZONE 5

ZONE 9

ZONE 14

ZONE 13 ZONE 6

ZONE 11

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ZONE 8ZONE 3

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Coega IDZ Zones Legend

Commercial District

Logistics Cluster

Automotive Cluster

Light Industry Cluster

Training/Academic Cluster

Light Metals & Medium Industry

Ferrous Metals

Chemical Cluster

Port Area

Port Related Facilities

Mari-Culture & Coastal Cluster

Petrochemical Cluster

Intermodal Facility

Logistics Support

Airport & Air Logistics Cluster

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I n t h i s s e c t i o n :

_ Chairperson’s Report 07

_ CEO’s Report 13


G e n e r a l O v e r v i e w

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Introduction

The Coega Project has continued on its growth trajectory to attract

investment, create jobs and play a decisive and positive role in the socio-

economic development of the Nelson Mandela Metropolitan region. The

Coega Project has managed to add an additional seven investors into

the fold, while creating over 5800 jobs during the reporting period.

Coega Project is a National Asset

The Coega Project is a multi billion rand industrial development covering

11 500 hectares of land, the Coega Industrial Development Zone (IDZ),

and the deepwater Port of Ngqurha. The Project was conceived as a

50 to 75 year development, which would advance industrial growth in

South Africa, particularly the Eastern Cape. The Project is also central

in the stimulation of economic growth, skills development and creation

of sustainable jobs.

The development of IDZs is governed by the IDZ Regulations of RSA

(Gazette No. 21803 of 01 December 2000), under the Manufacturing

Development Act (Act No. 187 of 1993), as amended. IDZs are areas that

are designated for export-oriented manufacturing and therefore are

required to be located next to an export node, either a sea-port or an

airport. The primary objective of the Coega IDZ is to generate economic

activity and this contributes to industrial development of the Eastern

Cape Province.

Our national government has committed close to R20 billion towards

the development of the Coega Project. This initiative involves a number

of key state institutions which includes, inter alia, the Department of

Trade and Industry (DTI), Eastern Cape Provincial Government, Eskom,

M o s e s M N g o a s h e n gChairperson

Chairperson’s Report

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“...A total of 5800 jobs have been created...”

Transnet, Nelson Mandela Bay Municipality and South African National Roads Agency Limited (SANRAL). This

is testimony to national government’s recognition of the strategic importance of the Coega Project as a key

instrument of our government to reduce poverty and create a better life for its citizens.

Project Objectives and Policy Alignment

The Coega Project seeks to realize sustainable economic growth through the realization of the following

objectives:

Attraction of Foreign Direct Investment (FDI) »Facilitation of Export Manufacturing »Technology Transfer »Industrial Expansion »Mineral Beneficiation »

The execution of the project has been approached in a dynamic manner, ensuring that it captures the evolving

elements of Government’s economic policy, including policy interventions such as Accelerated and Shared Growth

Initiative for South Africa (ASGISA) and the National Industrial Policy Framework (NIPF). Various analyses of

the South African economy, including the recently released report by the International Panel on Growth, have

highlighted the weaknesses caused by the fact that there has been no significant growth in the tradable sector of

the economy, and also that the logistics system and other input costs have created a situation where SA is not

internationally competitive.

The National Industrial Policy Framework (NIPF) issued by the DTI in August 2007 also impacted on the evolution

of the IDZ Programme. Whilst the IDZ regulations provided the guiding policy for the IDZ Programme, the NIPF

is the one document that started to crystallize the likely sectors for investment based on an understanding of

the key dynamics of the South African economy. The NIPF vision for South Africa’s industrialization trajectory is

to (i) facilitate diversification beyond the current reliance on traditional commodities and non-tradable services

(result: increased value-addition per capita); (ii) long term intensification of SA’s industrial process and movement

towards a knowledge economy; (iii) promotion of labour-absorbing industrialization and services; (iv) broader

based participation by historically disadvantaged individuals and marginalized regions; and (v) contributing to

industrial development on the African continent.

Whilst not being prescriptive on the sectors, the NIPF has identified five broad sectoral groupings where much of

SA’s sectoral diversification potential lies:

Natural-resource based sectors »Medium technology sectors (including downstream mineral beneficiation) »Advanced manufacturing sectors »Labour intensive sectors »Tradable services sectors »

Whilst the CDC will not seek to pursue all the sectors identified in the NIPF, it has sought to ensure that the

sectors being pursued have alignment to the NIPF, as well as being consistent with the requirements of the IDZ

programme.


Impact of the Energy Crisis

In the last three years, the Coega Project has been particularly successful in getting investments that create jobs

in one of the poorest provinces, based on sound economics and building on the existing industrial base. The

energy crisis of recent times will certainly add a new dimension to the challenges that the IDZ faces. In addition,

there are various other initiatives in Nelson Mandela Bay (NMB) beyond the IDZ on which the energy crisis is

likely to impact.

The current energy crisis will adversely affect the development of NMB, which includes the Coega IDZ. This is

a unique situation in South Africa since the power demand of the Coega IDZ totally overshadows that of NMB.

Current projections indicate that the IDZ’s power requirements, excluding the Coega Aluminium Smelter, will

exceed the total for the rest of NMB by 2011 (836MW versus 810MW). These power requirements are a direct

result of the unprecedented success in getting investment capital to locate at Coega as the best place globally for

its deployment.

The CDC currently has signed a number of investors in various sectors. There are six investors currently operating

in the IDZ providing over a 1000 jobs, there are other investors that are planning to start their production in

2010/2011.

The CDC is understandably concerned about the impact of the energy crisis on its ability to attract and retain

investments into the country and region. The CDC, together with NMB, is engaged in efforts to complement the

work being done by Eskom in seeking innovative ways of securing supply of power for the region. The CDC will

continue to work with its strategic partners in an effort to minimize the negative impact of the energy crisis on

the Coega Project as the ideal destination for investment in South Africa.

Corporate Governance

Adherence to corporate governance principles and practices is central to the manner in which the Coega

Development Corporation (CDC) conducts its business. The CDC has, in the last financial year continued its

practical commitment to corporate governance practices by continually ensuring adherence to best practices.

As the business continues to grow, the CDC will intensify its training amongst its staff as it believes that its

achievements are directly related to the strict observation of good corporate governance practices.

Ethics

The values of the CDC emphasize the importance of ensuring that our behaviour corresponds to the highest

standards of corporate ethics, as displayed by our corporate culture. Our values are reflected in our policies that

foster good corporate governance across all operations.

We are conscious, at all times, not only to be seen as ethical, but also to act ethically in each and every situation.

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Outlook

There is acknowledgement that investment flows are being negatively impacted by the global slowdown in

economic activity. The domestic economy has also not escaped the impact of interest rate hikes informed by

increasing global oil prices, food security concerns as well as energy challenges. Furthermore, the CDC has to pay

particular attention to the following strategic considerations: A responsive funding model, Customs Integration

and Rail Rollout.

The CDC is committed to the realization of the objectives of the Coega Project of ensuring sustainable economic

development in South Africa, particularly in the Eastern Cape.

With every day that dawns, we are unshakeable in our firm belief that the CDC is richly endowed with the

necessary human capital to creatively work together and find solutions to challenges that arise from time to time

in the evolution of the Coega Project. We remain committed to delivering a sustainable industrial development

hub for the Eastern Cape and South Africa.

Acknowledgements

The Board takes this opportunity to salute the leadership team of CDC, led by the Chief Executive Officer and

the rest of the Executive Management team. The Board would like to acknowledge the exemplary leadership

displayed by the team in the execution of its mandate.

An extended word of gratitude goes to all the staff of the CDC for their effort and contribution. The CDC is

encouraged by the will and readiness to confront and engage challenges that face the organization from time to

time.

On behalf of the Board, I would like to extend my sincere thanks to Mr Mandisi Mpahlwa for his leadership and

dedication as Minister of Trade and Industry, Premier Nosimo Balindlela and the Provincial Cabinet of the Eastern

Cape Provincial Government, as well as Executive Mayor of the Nelson Mandela Bay Municipality, Ms Nondumiso

Maphazi.

Moses (Moss) Ngoasheng

Chairman

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Food & Bev SETA signing March 2008

Nelson Mandela Bay Logistics Park

handover March 2008


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P e p i S i l i n g aChief Executive Officer

Overview

It is an honour to be part of a team that continuously challenges

itself to strive for outstanding outcomes, even in the face of adverse

environmental conditions. In light of this, it gives me great pleasure

to observe that the Coega Development Corporation (CDC) has once

again achieved outstanding results in the last financial year across its

key performance indicators. These achievements can be summarized

as follows:

Investment promotion: The CDC has added another 7 »investors, bringing the total number of investors signed

to date to 15.

Investment value: The value of investments to date is in »excess of R30 billion.

Job creation: An additional 5868 jobs was created, »bringing the total number of jobs created to date to

over 24000.

Skills development: Over 1800 learners were recruited »and trained through the CDC Industrial Development

Zone (IDZ) programmes.

Revenue generation: The CDC has generated R41 million »in revenue.

Provincial projects: Critical priority Provincial projects »such as the Cecilia Makiwane and Frere hospitals are

under the stewardship of the CDC. This is a testimony

to enduring partnership that the CDC has formed with

our strategic partners, the provincial government of the

Eastern Cape.

CEO’s Report

“The CDC has every reason to be proud of its performance over the last financial year across all critical areas.”

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Performance Overview:

Strategic analysis: Global economic environment outlook

During the first phase of the Coega project a significant amount of focus has been placed on investment into the

necessary infrastructure and enabling systems to ensure the establishment of an environment that is conducive

to growth. Since the inception of the Coega IDZ, infrastructure has been a key enabler of investments in the

economic sectors of the IDZ.

The CDC has developed a multi-sector strategic approach that takes into account various industries that are

suitable for relocation to the IDZ. The same strategic approach applies to companies wishing to expand the base

of their current supplier industry or ensure more productive use of labour. In turn, unemployment in the region

will be positively impacted upon.

Particular emphasis was placed on ensuring that the processes of backward integrations are actively and

dynamically enabled through institutional interventions. In addition, the CDC, in seeking to increase local content,

have put in place infrastructure and facilities to support suppliers of the automotive industry and other industries

that may benefit from export opportunities.

Investment promotion

During the past two years, the CDC has achieved significant success in comparison to its set objectives. These

are reflected in the table below:

Company Nature of project Est. Inves SectorDirect Jobs (est.)

SIGNED INVESTORS (15)

Dynamic Commodities Fruit processing for export TBS Agro-processing 350 per shift

Sati Container Depot R50m Logistics 26

General Upholsters/Accoustex Manufacture of vehicle interior firm R50m Automotive 150 per shift

Biomass Biomass fuel R70 Biofuel 350

Coega concrete projects Manufacturer and distributor of pre-cast products R50m Construction 50

Cerebos Salt production R60m Chemicals 200

Alcan Aluminium smelter R20bn Aluminium 1000

PE Cold Storage Cold Storage/Export facilities R50m Logistics 26

MSC Container depot R50m Logistics 75

Straits chemicals Chlorine plant/water desalination plant R5.8bn Chemicals 250

Afro-Asia Steel billets R75m Metals 120

ABSA BPO R31m BPO 85

Rainbow Nation Renewable Fuels

Biodiesel and animal feed from soya bean R1.4bn Chemicals 350

NMB LOGISTICS PARK

Faurecia Interior plastics components R280m Automotive

Rehau Plastic components R250m Automotive

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As the above table indicates, the Coega IDZ has been very successful in attracting investments in a range of

economic sectors. The CDC has always understood and abides by the belief that value arises not only from the

existence of resources and inputs, but from interaction between people and institutions, the appropriate use of

information and the identification of market opportunities. The process of generating investments in the Coega

IDZ therefore requires that the CDC brings to the attention of companies with investment capital the availability

of opportunities; the potential competitive advantage as well as the enabling framework established. In doing so,

the investment process at Coega is made significantly more efficient.

A testimony to the CDC’s effort and success can be seen in the unprecedented level of investments generated. Among

these investors are Dynamic Commodities, an agro-processing concern located in the IDZ, which has already seen

substantial and sustained growth through exports made possible by its presence in this world-class location. In

a similar vein, Accoustex, a Black Economic Empowerment Automotive company which supplies to Original Equipment

Manufacturers (OEM), located to the IDZ in order to continue meeting the quality requirements of its customers.

Notably, the CDC’s involvement in the automotive industry and the development of the Nelson Mandela Bay

Logistics Park (NMBLP), situated next to the Volkswagen South Africa factory, is also commendable. This is

particularly due to the potential of the NMBLP project to increase the local content on vehicles and thus impact

positively on employment creation.

In essence, the Coega IDZ is a global player in the field of investment locations.

Infrastructure development

Over the years, the provision of enabling infrastructure has remained critical to the CDC in order to continue

promoting investment in the IDZ. During the year under review, the CDC began intensifying its programme of

delivery of investor warehouses which meant a substantial amount of effort invested in the delivery of facilities

to enable production within these factories to commence. The CDC’s infrastructure programmes are divided into

five main streams, namely:

Programme 1: Enabling / municipal infrastructure (zone infills); »Programme 2: Commercial / investor driven infrastructure; »Programme 3: General / zone development; »Programme 4: Professional services; and »Programme 5: Five Year Development projects. »

The CDC’s infrastructure development efforts have re-affirmed the strategy of rolling out enabling infrastructure

in zone 1 to zone 5, which is the core development area. Fittingly, the majority (70%) of the investors in the IDZ

are located in this area.

Human capital development

The CDC is proud of the contribution it is making towards the development of critical skills in South Africa. The

CDC has, in the last financial year, trained in excess of 1800 learners. Following the government’s prioritization of

skills development in South Africa, the CDC plans to develop a Skills and Trade Testing Centre which can service

the Eastern, Western and Northern provinces and possibly KwaZulu Natal and the Free State.

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Strategic focus

The CDC has been engaged in a process of defining a medium term vision of future developments and

achievements. The culmination of this process is summarized in the following table:

Targets Current 5 year view (2013/14)*

Number of Jobs (per annum) 5 868 20 000

Construction Jobs 6 624 54 450**

Investment ± R30 billion R50 billion

Revenue Generated R40.94 million R250 million

Business in the IDZ (cumulative) 15 100

SMME as a % of Procurement(per annum) 30% 50%

Number trained (per annum) 1800 50 000

Increased Portfolio of Projects for Consulting Services 100% 200%

* 5 year view figures are cumulative figures from 2009/10 to 2013/14

** Construction jobs include Infrastructure Development & CDC-Services jobs

The CDC recognizes that a different approach is required in order to realise the desired end state. The CDC will

pay particular attention to the following strategic thrusts, as a way of realising the desired end state:

Focus on investors that serve as catalysts for the germination of key industries in the »targeted sectors. The goal is to focus on an investor whose value chain results in additional

investors locating in the IDZ;

Domestic opportunities for companies wishing to expand their operations; »Explore opportunities for strategic partnerships with key organisations and institutions; and »Invest in the capabilities required for the CDC to become a large-scale provider of critical skills. »

Critical to the success of the realisation of the CDC’s desired end state are the following key enablers:

A functioning and well regulated IDZ, supported by appropriate incentives; »Good and effective partnerships with key players, including authorities; »Focus on environmental and financial sustainability; »Effective logistics network; and »Provision of critical utility services and superior investor service. »

Socio-Economic Impact:

Safety, health and environment

Paramount to the work of the Coega project is considering the health and safety of the community and the

environment. In an effort to keep issues of safety, health and the environment at the forefront, the CDC participates

in a number of committees. In doing so, the CDC is able to advance the critical issues pertaining to the safety of

the contract workers and staff at the IDZ.

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Key provincial and local considerations

The Coega project is located within Nelson Mandela

Bay (NMB), in the province of the Eastern Cape. The

CDC aligns it’s programmes with those of the Eastern

Cape provincial government, taking into account the

following:

Socio economic profile of the Eastern »

Cape;

National planning framework and »

priorities;

Provincial Growth and Development Plan »

(PGDP);

Cluster priorities; »

Eastern Cape competitive advantages; and »

Priority economic sectors. »

The CDC continuously engages with relevant players

in order to obtain information regarding:

The extension of benefits of new »investments into broader sub-regions

(supply chains and linkages);

The extension of benefits of technical »capability to the province as a whole

(surplus capacity) around project

planning, project management,

investment facilitation, research etc.;

The strategic linkage with the Nelson »Mandela Bay Municipality (NMBM) and

the province;

The competition between IDZ’s »(delineating market share);

The IDZ clusters versus provincial »clusters;

The leveraging of infrastructure, human »capital, Research and Development, and

logistics capability for provincial benefit;

Participation in provincial processes; »and

Joint / collaborative branding across the »region.

Black economic empowerment

Socio-economic transformation, through preferential

procurement practices, is integral to the CDC’s mission

which is “To provide a competitive investment

location and a total business solution for customers,

and ensure sustainable economic development.”

Our procurement policy makes particular reference to

active participation of the previously disadvantaged,

including women, youth and the disabled.

During the 2008/9 Financial Year, a particular amount

of focus will be placed on actively monitoring and

evaluating the overall social impact made by the CDC

in this critical area of empowerment.

Internship programme

During the 2007/8 Financial Year, the CDC accepted

over 70 interns and assigned them to the various

business units, including the office of the CEO.

It is gratifying for the CDC to note that those that

take advantage of the opportunities presented by this

programme soon find employment upon completion.

A prime example is that of an intern from Centane,

Belinda Njoloza. The 27 year old started as an intern

at the CDC and progressed to being the assistant for

the Quality, Health and Safety Environment (QHSE)

manager at Saipem GPS, an Engineering company in

Italy. Njoloza also supports the project directors with

the preparation of reports, presentations and data

analysis and collects data and other material used for

internal and external publications. Saipem GPS deals

with onshore, offshore and drilling activities in Italy.

While working as an intern at the CDC, Njoloza, under

the guidance of the project managers at the Safety

Health and Environmental (SHE) business unit, was

placed with different contractors such as Bambanani

JV and New Port construction.

Development and personal growth as a result of

internships such as that of Njoloza serve as a further

motivation to the CDC to continue investing in socio-

economic development and transformation through

internship programmes.

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Outlook

By nature, the positive progress made in attracting

investments to the Coega IDZ will increase the

demand for services by the public sector, whilst at

the same time investors make a positive contribution

to employment, the fiscus and the country’s balance

of payments through exports. As a result of the

successful attraction of investments, the demand for

energy in the Coega IDZ, in particular, and in NMB in

general will increase.

The reliability of power supply was amongst the key

infrastructure constraints identified during an analysis

of the projects. It is critical to investment attraction

across all economic sectors and industries, especially

the light and heavy manufacturing industry, service

and the agro-processing industries that are likely to

dominate in presence in the Coega IDZ.

The supply of energy has also been identified as a

priority in the International Panel’s report as well as

by the Accelerated and Shared Growth Initiative for

South Africa (ASGISA) initiative.

The CDC has been pro-active in the development of

possible solutions to this national challenge. To this

end, the CDC is exploring the possibility of facilitating

the realization of a power station in the Eastern Cape,

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more specifically, at the Coega IDZ. We are optimistic

that, given the support from both national and

provincial government, a practical solution will emerge.

Acknowledgements

Firstly, I would like to thank the Chairperson of the

Board, Mr Moss Ngoasheng, and the rest of the CDC

Board, for their exemplary leadership in steering this

organization to greater levels of excellence. Our people

remain our most important asset and there is no doubt

in my mind that nothing would have been possible

without their continued dedication and commitment.

I pay tribute to our political authority at both national

and provincial level. A significant amount of what

has been achieved can be attributed to their active

support and sponsorship of the Coega project.

We would like to thank, in particular, the Minister

of Trade and Industry, Mr Mandisi Mpahlwa; the

Minister of Public Enterprises, Mr Alec Erwin; Mr

Trevor Manuel, the Minister of Finance; the Premier

of the Eastern Cape, Mrs Nosimo Balindlela and the

Provincial Cabinet, the Mayor of Nelson Mandela Bay

Municipality, Ms Nondumiso Maphazi; the Business

community of the NMB and all other stakeholders and

strategic partners of the Coega project.

Mninawe (Pepi) Silinga

Chief Executive Officer

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_CDC Board of Directors 26

_Audit & Finance Sub-Committee 30

BOARD OF DIRECTORS

Moses M Ngoasheng (Chair)Paul JourdanJan de BruynSilumko NondwanguMxolisi MatshambaMaobelo M Kwenaite (Resigned: November 2007)Sipho ZikodeBicks NdoniLeslie MaasdorpLionel October (Resigned: September 2007)Mninawe (Pepi) Silinga (Executive)

AUDIT & FINANCE SUB-COMMITTEE

Xolile Ncame (Chair)Ayanda MjekulaLeslie MaasdorpMxolisi MatshambaJan de BruynMninawe (Pepi) Silinga (Attendee)

INVESTMENT PROMOTION SUB-COMMITTEE

Paul Jourdan (Chair)Moses M NgoashengMaobelo M KwenaiteBryan Shepstone RaynerGerrit van Wyk

HUMAN RESOURCES & REMUNERATION SUB-COMMITTEE

Jan de Bruyn (Chair)Moses M NgoashengPaul JourdanSilumko NondwanguMninawe (Pepi) Silinga (Attendee)

COMPANY SECRETARY

Miranda Pango

GOVERNANCE STRUCTURES


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P r o f i l e s

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>>>M o s e s M N g o a s h e n gC h a i r p e r s o n

A p p o i n t e d : 1 J u l y 1 9 9 9

D r P a u l J o u r d a n A p p o i n t e d : 1 J u l y 1 9 9 9

Moses M Ngoasheng

Mr Ngoasheng holds a BA Economics and International Politics from the University of South Africa (UNISA); a BSoc. Sci Honours – Industrial Sociology (First Class) University of Natal; and an MPhil Development Studies (First Class) from the Institute of Development Studies at the University of Sussex Brighton, UK. Currently Executive Chairman Safika Holdings, Ngoasheng is a past economic advisor to President Thabo Mbeki and has consulted for major South African corporations on Business Strategy, as well as the World Bank. He is Chairman of the listed human resources and staffing specialist company Kelly Group, a board member of Dimension Data plc, Freeworld Coatings, SAB Limited, among others.

Dr Paul Jourdan

Dr Jourdan holds a BSc. in Geology and a BA in African Government from UCT; a Post-graduate Diploma in Exploration Geophysics from ITC in Delft, Netherlands; a PhD in Politics from Leeds University, UK; and an MSc. in Mineral Economics from Wits University. He is currently a mineral development advisor to the AU and the Liberian Government. He is the past-President/CEO of Mintek and when he was the Deputy Director General in charge of Special Projects in the Department of Trade and Industry. Dr Jourdan was responsible for the establishment of Industrial Development Zones pioneered by Coega.

CDC Board of Directors

Moses M Ngoasheng (Chair)Paul JourdanJan de Bruyn

Silumko NondwanguMxolisi Matshamba

Maobelo M Kwenaite (Resigned Nov 2007)Sipho Zikode

Bicks NdoniLeslie Maasdorp

Lionel October (Resigned Sep 2007)Mninawe (Pepi) Silinga (Executive)


J a n d e B r u y nA p p o i n t e d : 1 J u l y 1 9 9 9

Jan de Bruyn

Mr De Bruyn holds a BSc. BEng. (Civil), Stellenbosch University; MBL (Cum Laude) University of South Africa, and AMP, Harvard University. After a 32-year career, he retired from the Industrial Development Corporation of South Africa (IDC) as Deputy Managing Director. De Bruyn initiated the building of the first factory flat in Soweto, coordinated the establishment of the Small Business Development Corporation (SBDC), the sale of Metropolitan Life to an empowerment group and the development of the Saldanha industrial area. He served on the boards of the SBDC, Algorax (Chair), Hulett Aluminium, Gencor, Saldanha and Steel (Chair) and MDP (20 years, with 10 as Chair), as well as on the executive of the Johannesburg Afrikaanse Sakekamer and the AHI (Afrikaanse Handelsinstituut)

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Silumko Nondwangu

Mr Nondwangu is the General Secretary of National Union of Metalworkers of South Africa (NUMSA). He currently serves on the Board of Directors of the following entities: Development Bank of South Africa (DBSA) and the National Labour & Economic Development Institute (NALEDI).

His humble beginnings in the labour front started when he worked as a Local Organiser for NUMSA on full-time basis in 1991. He was then appointed as an Education Officer, responsible for the training of shop stewards, from the basic to advanced levels of political economy.

Nondwangu also served in the Congress of South African Trade Unions (COSATU) Executive Committee, and represented the Federation in the Eastern Cape Provincial Economic & Development Forum. He was elected as the Eastern Cape Regional Secretary of NUMSA in 1997. In 2000, he was elected to the position he currently holds, as the General Secretary of NUMSA, and also represents NUMSA in the International Monetary Fund (IMF).

S i l u m k o N o n d w a n g uA p p o i n t e d : 5 A u g u s t 2 0 0 4


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Mxolisi D. Matshamba

Mr. Matshamba holds a B.Comm Degree from NUL (ROMA), a Certificate in Petroleum Economics & Policy – Wits University, Graduate School of Public Development and Management. He also holds a Certificate in Risk Based Integrated Auditing – Osterio, Georgia, a Certificate in Accelerated Directorship Programme – Institute of Directors (IOD). He is the CEO of the Eastern Cape Development Corporation. He worked for Trade and Investment South Africa (TISA) as the Chief Operating Officer and acting CEO. Prior to joining TISA he was an Audit Relationship Manager and later a Business Performance Manager with BP (SA).

M x o l i s i M a t s h a m b aA p p o i n t e d : 2 6 M a r c h 2 0 0 7

M a o b e l o M K w e n a i t eA p p o i n t e d : 1 J u n e 2 0 0 1

Maobelo M Kwenaite

Kwenaite holds a BA in Social Science from the University of Cape Town. He is currently the chairperson of Recreation and Culture Business Unit of the Nelson Mandela Bay Municipality and a member of the Mayoral Committee.

He also serves as a Member of Sub-Committee: Economic Development Nelson Mandela Region: ANC. Prior to this he was the Business Development Manager for East Cape Transformers. He was also the Research and Development Project Manager for the Western District Council.

R e s i g n e d : N o v e m b e r 2 0 0 7

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S i p h o Z i k o d eAppointed: 8 November 2007

Bicks Ndoni

Mr Ndoni matriculated at the Limekhaya High School in Uitenhage in 1979, and obtained a BA Degree at the Vista University, Port Elizabeth, in 2001. He was employed at Goodyear, Uitenhage, as from 1980 till 1996, when he was inaugurated as a Councillor of the Uitenhage Transitional Council. In 1999, he was elected as Mayor of Uitenhage, and served in that post until the forming of the Nelson Mandela Bay Municipality in 2000, where he filled the position of Portfolio Councillor for Infrastructure, Engineering and Energy Committee in 2001. He was inaugurated as the first Deputy Executive Mayor of the Nelson Mandela Bay Municipality in 2002 and is currently still serving in that position.

B i c k s N d o n iA p p o i n t e d : 1 4 D e c e m b e r 2 0 0 7

Sipho Zikode

Mr Sipho Zikode holds a B.Comm in Economics from the University of the Witwatersrand, a Post Graduate Diploma in Marketing Management obtained from the University of South Africa and a National diploma in Chemical Engineering obtained from Mangosutho Technikon; an MBA from the University of Pretoria and a certificate in technological innovation obtained from the University of Pretoria. Following a short spell on secondment as Deputy Director: Sector Technical Director at the Department of Arts, Culture, Science and Technology, he returned to the Department of Trade and Industry in 1999 rising from Deputy Director Defence Portfolio to his current position as Chief Director Industrial Participation, a position he took up in 2003. In 2007 he was appointed acting Deputy Director-General of the Enterprise and Industry Development Division (EIDD) whist remaining on as Chief Director of Industrial Participation.


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Leslie W. Maasdorp

Mr Leslie Maasdorp holds an M.Sc degree in Economics obtained from the School of Oriental and African Studies at the University of London. In 2007 he was designated as a Young Global Leader by the World Economic Forum. In 2002, he was the first African to be appointed as International Advisor to Goldman Sachs International, a position he held for 4 years. Prior to this role, he led the privatisation program of the South African Government, when he served as Deputy Director General in the Department of Public Enterprises. In 1994 he was appointed Special Adviser to the Minister of Labour, Mr. Tito Mboweni. He is a former trade unionist and served as Regional Secretary of the South African Clothing and Textile Workers Union (SACTWU) in the Eastern Cape. Prior to the democratic elections in 1994 he worked as an economic policy adviser for the ANC Department of Economic Policy (DEP). He was appointed Vice Chairman of Barclays Capital and Absa Capital in September 2006. He served on the Boards of Absa Group and Absa Bank from 2004 until 2006 when he joined the Bank in an executive capacity.

Lionel October

October holds a MSc. in Economics; a Post-graduate Diploma in Economics from the London UK School of Oriental and African Studies; and a BA (Hons) in development studies and a BJuris. from the University of the Western Cape.

He is currently Deputy Director-General for Enterprise and Industry Development at the Department of Trade and Industry (dti). Prior to holding that position, he was Chief Director at dti.

October also served as a senior commissioner and Regional Director for the Commission for Conciliation, Mediation and Arbitration. His experiences as a labour leader include holding the positions of General Secretary of the South African Clothing & Textile Workers Union and Legal Officer for the Garment Workers Union of the Western Province.

His awards include the Helen Suzman Scholarship in 1995 and ODA Scholarship in 1996. He has also published papers on population and the clothing industry.

L e s l i e M a a s d o r pAppointed: 5 August 2004

L i o n e l O c t o b e rA p p o i n t e d : 1 A u g u s t 2 0 0 1

R e s i g n e d : S e p t e m b e r 2 0 0 7

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Mninawe (Pepi) Silinga

Mr Silinga is a professionally registered Civil Engineer (Pr. Eng), Project Manager (PMP) and Chartered Director (Cir. Dir.). He is a member of various professional associations, namely South African Institute of Civil Engineers (SAICE), Engineering Council of South Africa (ECSA), Institute of Directors (IOD − UK & SA Chapter), Project Management Institute (PMI) and elected as a fellow of the South African Academy of Engineers (SAAE). He holds a BSc. Eng. (KwaZulu Natal), M. Eng. (Wits) and MBA (Heriot-Watt University, Edinburgh, UK). He successfully completed various management and executive development programmes with Unisa (MDP), Stellenbosch (CMP), Oxford and INSEAD (AMP). He has extensive experience in corporate governance responsibilities of Boards, having served on various public sector boards in different capacities including being the outgoing chairman of the Construction Industry Development Board (CIDB). Currently, he is the Chief Executive of the Coega Development Corporation, which is the principal driver of the Coega Project.

M n i n a w e ( P e p i ) S i l i n g a( C h i e f E x e c u t i v e O f f i c e r )


A y a n d a M j e k u l a

Ayanda Mjekula

Mr Ayanda Mjekula holds a BA degree in English from the University of Fort Hare and an MBA, Financial Accounting from Western Michigan University, USA.

He has twenty years experience in the bank industry, having worked for two of the major four banks. His banking experience involved areas of retail operations management, corporate finance, credit and public sector banking.

Ayanda is currently Chief Executive of the South African Supplier Development Agency. He was previously Chairman of the Central Energy Fund (Pty) Ltd and of the South African Agency for the Promotion of Petroleum Exploration and Exploitation (Pty) Limited. He has also served on the boards of PetroSA Limited and Inframax Holdings.

Mr Mjekula currently serves as Chairman of the National Arts Festival – Grahamstown. He also sits on the Council of the University of Fort Hare and chairs its Foundation and Finance Committee

Xolile Ncame

Mr Ncame holds a B.Compt from Unisa, a Post-graduate Diploma in Accountancy – CTA (UPE), a Diploma in Financial Markets and Instruments (RAU) and an MBA (Wits Business School). He is a Chartered Accountant (SA) as well as a Chartered Management Accountant (CIMA, UK). He has worked in different organizations including as a Partner at KMMT, Partner at KPMG, Chief Financial Officer of the DTI & Chief Financial Officer of the Land Bank.

X o l i l e N c a m eC h a i r p e r s o n

Audit and Finance Subcommitee

Xolile Ncame (Chair)Ayanda Mjekula

Leslie Maasdorp (see profile on p.28)

Mxolisi Matshamba (see profile on p.26)

Jan de Bruyn (see profile on p.25)

Mninawe (Pepi) Silinga (Attendee)(see profile on p.29)


_ Business Development Unit 35

_ Infrastructure Development Unit 39

_ Operations Unit 43

_ Human Capital Solutions Unit 47

_ Coega Development Corporation Services Unit 53

_ Corporate Services Unit 57


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annual report - coega · coega | 2008 | annual report outlook there is acknowledgement that...

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