COEGA DEVELOPMENT CORPORATIONPRESENTATION TO SELECT COMMITEE ON TRADE AND

INTERNATIONAL RELATIONS23/05/2012

AGENDA

• Progress made since inception• Funding• Challenges

• Readiness to implement the SEZs.

Progress made since Inception

Functions of Economic Zone Operator

Synopsis1998:Coega Industrial Development Zone Development

Framework Plan completed.– Ngqura Port Act enacted.

1999: Coega Development Corporation incorporated

2000: First four (4) IDZs proclaimed:– Coega, Johannesburg International Airport, Richards Bay and East

London

2000: Environmental authorisation for IDZ and Port approved

2002: Provisional IDZ Operator’s permit granted to Coega– Draft National Ports Bill– Port of Ngqura Proclaimed– Commencement of infrastructure

2005/6: First tenant in the CIDZ

Progress

• 21 operating investors

R1.24bn in private sector investments in

- Metals

- Agro-processing

- Manufacturing

- Renewable Energy &

- Services sectors

• 3208 operational direct jobs

• 25 963 indirect and induced rural jobs (from agro-processing)

• Over 40 000 construction jobs

DYNAMIC COMMODITIES

Cape ConcentrateCape Concentrate

INVESTMENTS

SECTOR VALUE DIRECT EMPLOYMENT

INDIRECT EMPLOYMENT

Chemicals R3.3 billion 800 1800

Logistics R85 million 417 21178

Auto components R694 million 616 1682

Alternative energy R2 billion 50 350

BPO R31 million 120 48

Oil Refinery R76 billion 1000 7000

Downstream metals (Iron and Steel)

R75 million 120 100

Food & Beverage Industries

R100 million 1500 5000

Manufacturing R50 million 50 40

Total R82,335billion 4673 37198

BPO & SKILL CENTREBPO & SKILL CENTRE

Transformational Projects

• Oil refinery – Project Mthombo

• Ship Repair Yard

• Transshipment Hub

• Gas Terminal

• CCGT

• Seawater Intake

• Manganese Smelters

• Return Effluent – pre-feasibility study funded by DEDEAT

• Sishen / PE Rail Upgrade

Funding

Functions of Economic Zone Operator

Challenges

Functions of Economic Zone Operator

Readiness to Implement the SEZ Bill

Functions of Economic Zone Operator

Functions of Economic Zone Operator• Develop and implement a strategic plan within framework of SEZ

strategy.• Make improvements to the SEZ.• Provide or facilitate the provision of infrastructure and other

services required.

Functions of Economic Zone Operator• Provide adequate enclosures to segregate the zone from any

customs area.• Provide adequate security on the site including offices and

facilities of the zone.

Functions of Economic Zone Operator• Adopt rules and regulations for business within the zone in

order to promote its safe and efficient operation.• Maintain adequate and proper accounts and other records in

relation to its business as per applicable legislation.• Promote the relevant SEZ as a foreign and domestic direct

investment destination.• Undertake any other activity within the scope of the SEZ act.

Functions of Economic Zone Operator• Facilitate a single window clearance facility

that delivers required government services to with minimum red tape.

Comments on the SEZ Bill• Quorum Requirement; government role is key.• SEZ Fund to not be a major constraint; mechanism to ensure

funding equity.• Highlighting of the need for incentives; formation of a board

sub committee on investments• Reporting arrangement sill not clear enough; reporting to

owner and the SEZ board only.• SEZ permit holding company required to only operate an SEZ;

requirement of grandfather clause to ensure continuity.• Review of existing IDZ’s to ensure that they are positioned

correctly after formation of differing classes of SEZ’s.

Coega Readiness• Ascertain status of CDC as permit holder:

– Considering that the CDC has several business lines outside of the Coega IDZ.

– Could result in the unbundling of the CDC.

• Work with DTI on formation of SEZ board.– Identification of subcommittees.– Identification of classes of SEZs

• Evaluation of CIDZ as an SEZ (type?)

THANK YOU