Adjacent to the deep-water Port of Ngqura, the over 9,000-hectare Coega zone now hosts a diverse range of high-value sectors, including automotive manufacturing, logistics, agro-processing, renewable energy, metals, chemicals, and aquaculture.

by Shiraaz Mohamed

GQEBERHA, South Africa, Oct. 2 (Xinhua) -- Situated along the shores of Nelson Mandela Bay in South Africa's Eastern Cape Province, the Coega Special Economic Zone (SEZ) has grown into one of the country's most vital industrial and logistics hubs, driving regional economic transformation and long-term industrialization.

South Africa has faced persistent structural challenges in recent years, including sluggish economic growth, high unemployment hovering above 30 percent, and an urgent need to transition away from heavy reliance on commodities toward diversified value-added manufacturing.

Within this national context, SEZs have emerged as crucial policy instruments designed to bypass broader infrastructural bottlenecks, attract foreign direct investment, and stimulate regional job creation.

Adjacent to the deep-water Port of Ngqura, the over 9,000-hectare Coega zone was established to fulfill this strategic mandate. Today, it hosts a diverse range of high-value sectors, including automotive manufacturing, logistics, agro-processing, renewable energy, metals, chemicals, and aquaculture.

Coega's growing role as an economic engine is highlighted in its recent performance indicators. According to Statistics South Africa, the zone recorded a total income of approximately 25 billion rand (about 1.43 billion U.S. dollars) in 2024, representing a 32.2-percent year-on-year increase.

Speaking to a visiting media delegation in Gqeberha this week, Themba Koza, chief executive officer of the Coega Development Corporation, emphasized that the zone secured 13 new investors in the 2024 financial year, with a combined investment value of roughly 885 million rand.

"By the end of that financial year, Coega hosted 67 operational investors representing a cumulative investment value of approximately 12.5 billion rand, creating over 11,000 operational jobs," Koza said.

Capital investment in the zone remains robust. Capital expenditure on new assets reached 935 million rand in 2024, a 67.6-percent surge from 558 million rand in 2023. The bulk of this capital was directed toward machinery, plant, and equipment, which accounted for 47.7 percent of total outlay, underscoring a clear transition toward modernized industrial production.

The number of active operational enterprises in the zone expanded to 46, accompanied by a 14.7-percent rise in direct employment to 6,594 jobs. Manufacturing remains the principal pillar of this growth, accounting for 59.4 percent of direct employment created within the zone.

Economists emphasize that Coega's economic impact extends far beyond its physical boundaries. High-value manufacturing within the zone generates strong multiplier effects, stimulating downstream demand for local suppliers, construction firms, transport services, and engineering maintenance providers across the Eastern Cape, a province historically burdened by high joblessness.

Under South Africa's national SEZ program, designated zones serve as primary catalysts to boost exports, enhance industrial competitiveness, and foster economic inclusion. Manufacturers inside the zone benefit from direct access to international maritime corridors via the adjacent Port of Ngqura, integrated utilities, dedicated customs-controlled areas, and tailored operational support.

Asanda Xawuka, executive manager for business development at Coega, told reporters that SEZs provide the enabling infrastructure needed to capture emerging economic opportunities.

"Special economic zones provide a flexible, world-class environment that allows us to nurture new and high-growth industries," Xawuka said. "Most major forward-looking projects choose SEZs like Coega because the required infrastructure and regulatory support are already in place to drive national economic development."

While traditional automotive manufacturing and heavy industry remain core strengths, Coega is rapidly positioning itself at the forefront of green transition and economic diversification, focusing on renewable power, green hydrogen, pharmaceuticals, and advanced recycling facilities.

The Eastern Cape provincial government confirmed that several major green hydrogen and green ammonia initiatives are currently advancing through planning and engineering stages, alongside a planned 100-megawatt solar project approved for development.

As these investments translate into operational plants, skilled employment, supply chain integration, and export expansion, the Coega zone is expected to strengthen its role in connecting South African production with broader African and global markets.