CDC performance targets in reach for 2016

Coega Dairy

2015 saw CDC signing 19 investors during 2014/15. In addition, the CDC had 31 operational investors with a combined investment value of R6.44bn as at 31 March 2015.

"The above feat was achieved against a backdrop of a weak global economy. According to the UN Conference on Trade & Development, foreign direct investment into South Africa in 2015 dropped by 74%," says Dr Ayanda Vilakazi, CDC head of Marketing & Communications

Dairy project

This year has seen the operational commencement of the Coega dairy project worth R25m in zone three of the Coega IDZ having created over 650 jobs. The project consists of the expansion of the Coega cheese product line and installation of a ware house and office block.

One of CDC’s flagship projects, the Dedisa power peaking plant - a R3.5bn investment situated in zone 13 of the Coega IDZ - celebrated four months of commercial operation since it came on line in September 2015 and created over 1,490 jobs during its construction phase.

The R86m multi-user facility situated in zone 3 of the Coega IDZ has already seen over 103 people employed as part of its construction. The 7,800m² facility is built over seven hectares of land. Once completed it will comprise of smaller units ranging between 350m² and 1,500m² under one roof with shared communal infrastructure.

“The construction of the facility is progressing well and has seen several investors showing interest in forming part of the facility. River Edge, a sugar processing plant has already made its intention clear with an investment value worth R10m,” said Dr Keith du Plessis, CDC business development manager.

Polymer products

Another project currently under construction is Spiral Wrap with an investment value of R19.8m. The plant falls under the chemicals sector and focuses on polymer products for industrial use. “Spiral Wrap started construction last year November and will be situated in zone 7 of the IDZ. The project has translated to over 150 jobs thus far during its construction phase,” said Duane Mouton, CDC business development manager (chemicals).

In addition, Lension - with an estimated investment value of R16.5m from Malaysia - will in the next couple of months start with the construction of its facility. The investor is currently in the process of acquiring services in preparation for the plant’s construction.

Another project which was recently endorsed by government is the Coega oil refinery, called Project Mthombo. The project entails the construction of a new crude oil refinery based in the Coega IDZ.

“The oil refinery will contribute to the secure supply of liquid fuels. Feasibility studies have been completed and construction is estimated to take between three to four years. It is envisaged that the project will start operations in 2022, though an earlier date for the implementation of the project would be ideal,” Vilakazi said.