Page 45 - Provincial Treasury Estimates.pdf

Estimates of Provincial Revenue and Expenditure (EPRE) -2023/24 Financial Year
Special Economic Zones

Special Economic Zones remain to be important industrial and economic development tools for the province.

Through various policy and incentive measures government has been able to attract domestic and foreign
fixed investments, facilitate technology transfer and create jobs through the two provincial special economic
zones.

Coega Special Economic Zone Company

As an indicator of the challenging economic conditions during the current financial year by end of quarter 3

of 2022/23, the Coega SEZ had only managed to attract and sign 5 local and foreign direct investments with
a value of R 292.62 million against the annual target of 9 investments with total value of R460 million. In

addition, the CDC managed to create 4 066 construction jobs against an annual target of 6 039.

The provincial government has allocated to CDC the following amounts over the 2023 MTEF:

R372.272 million in 2023/24, R668.419 million in 2024/25 and R870.348 million in 2025/26. These
allocations are inclusive of the Budget Facility for Infrastructure (BFI) and costs to operate the zone.

East London Industrial Development Zone

The following provides some highlights of investment inflows into the EL IDZ for the past 5 years.

FY 2019/20

The organization attracted 7 new investors that pledged private investment of R1.4 billion. This investment
was matched by an investment of R858.1 million that was injected by government through the Department
of Trade, Industry and Competition (Dtic). During construction phase for the top structures to accommodate

the new investors 2 406 construction jobs for the year. In addition to the creation of construction jobs, the
new investors pledged 1061 permanent jobs of which 813 are actually active.

FY 2020/21
The organization managed to attract 6 investors, 2 of which were private investors that received land from

the IDZ and invested own capital for equipment and top structures. The investors that were attracted
pledged private investment to the value of R981.5 million. Against that investment, government invested
R310 million on the top structures that were constructed for the investors.

The construction of top structures created 719 jobs. In addition to the construction jobs, the investors
pledged 454 permanent jobs versus the actual number of 965. The main reason for the positive difference

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