Press Release                                                                                                                     11 April 2024

SEZ Income Surges to R18, 9 Billion in 2023

Gqeberha, 11 April – The Coega Special Economic Zone (SEZ) in Gqeberha is showing consistent growth in both income and capital expenditure, and employs more women and youth, according to the latest Statistics South Africa survey.

Investors made R18,9 billion last year, according to Stats SA’s Coega Special Economic Zone Survey 2023, which was released at Eastern Cape’s port city of Gqeberha.

The total income had an annualised increase of 15,9% between 2021 to 2023, the survey found. The income in the Coega Special Economic Zone in 2023 was composed mainly of ‘sales of goods’.

Meanwhile, the total expenditure in the Coega Special Economic Zone in 2023 was R17,9bn. The largest contributors to the total expenditure were ‘purchases’, ‘salaries and wages’, and ‘depreciation’.

The SEZ accommodates cutting-edge facilities for automotive metals/metallurgical, automotive, business process outsourcing (BPO), chemicals, agro-processing, logistics, trade solutions, energy, and maritime industries.

The survey was handed over to Coega Development Corporation, which manages the SEZ, by Stats SA Deputy Director-General for Statistical Operations and Provincial Coordination, Ashwell Jenneker.

Speaking at the results launch, Mr Jenneker was pleased with the investors participation in the Coega Special Economic Zone Survey 2023.

“We are very satisfied with the fact that all investors responded in this survey and what is clear is that the Coega initiative contributes to development, job creation and economic growth in the region,” said Mr Jenneker.

“We value this partnership and we will continue using our statistical measurements to give evidenced based information to support decision making,” Mr Jenneker said, as he handed the survey results to Mr Coega Themba Koza, acting Chief Executive Officer.

The Coega Development Corporation has welcomed the survey results.

“The Coega SEZ Census Report contributes to the Coega Development Corporation’s insights on investor performance and how the organisation functions in relation to investor management.  This in turn provides the necessary data to inform future strategies, operational efficiencies, and expansion plans. We are especially pleased about the employment data cited in the latest report,” says Ms. Magama Makgamatho, Coega Chief Knowledge and Digital Officer.

According to the survey data, the Coega Special Economic Zone, recognized as the largest industrial zone in Southern Africa, exhibited a notable surge in its capital expenditure on new assets in 2023.

The total capital expenditure on new assets in 2023 was R558 million compared to R346 million the previous year. This surge translates to an impressive annualized growth rate of 27,0%, underscoring the zone’s robust financial expansion and commitment to infrastructure development.

The largest categories of capital expenditure were ‘capital work in progress’ and ‘plant, machinery and equipment.

The SEZ, located in the Nelson Mandela Bay Metropolitan Municipality in Eastern Cape, was designated in 2001 to become South Africa’s first industrial development zone (IDZ).

The IDZ, which had 43 tenants in 2023, leverages public-sector investment to attract foreign and domestic direct investment in the manufacturing sector with an export orientation.

The income in the Coega Special Economic Zone in 2023 was composed mainly of ‘sales of goods’. However, between 2018 and 2023, ‘manufacturing’ contributed the biggest percentage share of income.

The IDZ was growing as a manufacturing hub with the survey showing that between 2018 and 2023, ‘manufacturing’ contributed the biggest percentage share of income.

Manufacturing contributed 73,2% of the total income of the tenants in 2023, while their contribution to employment (excluding employees employed through labour brokers) was 58,4%. Non-manufacturing contributed 26,8% of total income and 41,6% of employment.

The Industrial Development Zone (IDZ) continued to demonstrate tangible impact on transformative socio-economic indicators. In 2023, female representation in the workforce, excluding labour broker employees, stood at 38,4%, indicating significant strides towards gender inclusivity. Notably, the ‘non-manufacturing’ sector boasted the highest proportion of female employees, accounting for 51,6% of its workforce.

Moreover, the youth played a substantial role in the Coega Special Economic Zone’s employment landscape, constituting 42,7% of the workforce (excluding labour broker employees) in 2023. Once again, the ‘non-manufacturing’ sector emerged as the primary employer of young individuals, showcasing its appeal and opportunities for career entry. These statistics underscore the IDZ’s commitment to fostering diverse and inclusive employment practices, essential for sustainable economic growth and development.

In 2023, the proportion of goods and services exported or sold to domestic exporters was 25,8% of total goods and services sold in the Coega Special Economic Zone.

Ends//

Issued by Statistics South Africa

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