Page 75 - Estimates of Public Entities Revenue & Expenditure 2023

PROVINCE OF THE EASTERN CAPE ESTIMATES OF PUBLIC ENTITIES REVENUE AND EXPENDITURE 2023/24

The actual number of jobs that were created by the investment is 965. The main reason why there
were so many jobs that were created is that Mercedes Benz launched a new generation of cars,

including new Mercedes Benz C-class model. This new model enabled the localisation of some
suppliers that were supplying the old model from outside the country.

The organisation through Dtic managed to invest R436 million in top structures. The investment in
top structures created 1 488 construction jobs. In addition to creating construction jobs, the investors

pledged 756 jobs and the actual number of jobs that were created and sustained by this investment
is 864.

As at the end of the third quarter of 2022/23, the ELIDZ, concluded one investment agreement for
the year to date with a combined investment value of R70 million. However, there are three

investments that were taken to the board for approval and the organisation is busy negotiating the
conclusion of the agreements before the end of the financial year. To date, the only new construction

jobs that were created were in the Pepkor investment project.

Whilst there are evident challenges in terms of new investments, one of the highlights of this reporting

period is that the ELIDZ has hit a record high when it comes to the number of active manufacturing
and services jobs, currently sitting at 4300 jobs over 4600 projected for the financial year.

The ELIDZ’s socio-economic impact initiatives are also starting to yield excellent return. The Corporate
Social Investment programme continues to impact on communities whilst the Construction Incubator

programme is starting to yield results despite challenges related to the securing of an implementation
partner.

The ELIDZ has also provided 39 internship opportunities during the year to date.

New Investor Opportunities

ELIDZ continue showing active support for investors negatively impacted by the lingering effects of

the pandemic as well as the shortage of semi-conductors by which many of its automotive suppliers
were affected financially. Volumes demanded from the automotive suppliers since the start of

production is well below the forecasted volumes these investors had used to finalize their business
cases.

Further trends identified included the need to cater for SMME’s seeking accommodation (under roof)
with short lead times. The ELIDZ Fort Jackson Industrial Park for which the entity is in the process to
seek funding for, if restored, will attract this segment of domestic investment that seek to scale to

commerciality in a phase-in approach and perhaps have presence in the zone in future.

Furthermore, ELIDZ needs to re-imagine how it leverages its value proposition, developing

investment opportunity profiles and building a viable and quality pipeline of bankable investment
projects, collaborating with business chambers, trade agencies and embassies and soliciting lead
generation facilitators in international countries.

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