FLUOROCHEMICALS South Africa, the Technology Innovation Agency (TIA) and Nelson Mandela University have signed a Memorandum of Agreement (MoA) to advance the Fluorochemicals Strategic Innovation Programme at the Coega Special Economic Zone (SEZ).
In a separate, yet related agreement, the Coega Development Corporation and the TIA signed a broader Memorandum of Understanding to advance innovation and industrial growth.
The Nelson Mandela Bay Business Chamber described the MoA as a “transformative step towards establishing an entirely new industrial value chain in South Africa”.
According to the chamber, the MoA formalises the development and execution of a national plan to create a domestic fluorochemicals industry and unlock the value of South Africa’s fluorspar reserves at a time when global demand for fluorochemicals is accelerating rapidly.
Fluorochemicals South Africa plans to invest approximately R5.5 billion in the Coega SEZ, including R3 billion towards the construction of an Anhydrous Hydrogen Fluoride (AHF) plant and a further R2.5 billion in downstream manufacturing facilities.
The AHF facility is expected to create up to 300 direct jobs and approximately 2,100 indirect jobs, while additional employment opportunities are anticipated as downstream industries develop, including graphite processing and lithium iron phosphate (LFP) battery cell manufacturing, the chamber said in a media release.
Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen said the agreement represents one of the most significant industrial development opportunities to emerge in South Africa in recent years.
“This is not simply another investment announcement. It is the foundation of a new industrial ecosystem that has the potential to unlock billions of rand in value, strengthen South Africa’s manufacturing competitiveness and position Nelson Mandela Bay at the centre of industries that will define the future global economy.”
A broader framework
The MoU between the Coega Development Corporation and the Technology Innovation Agency aims to unlock the full potential of innovation-led growth. Anchored within the Coega SEZ, the collaboration aims to strengthen the link between research, innovation, technology development and commercialisation, ultimately contributing to sustainable socio-economic development.
TIA chief executive officer, Dr Titus Mathe underscored the importance of the partnership in addressing national priorities, noting that TIA is committed to advancing innovation that delivers tangible impact. “This collaboration enables us to fast-track the development and deployment of technologies that respond to South Africa’s most pressing challenges, while improving the quality of life for communities,” he said.
Coega chief executive officer, Themba Koza emphasised the strategic alignment between the organisations, highlighting the Coega SEZ as a critical enabler of industrial growth. “This partnership positions Coega as a hub where innovation meets industry. Together with TIA, we are building an ecosystem that attracts investment, nurtures new industries and strengthens South Africa’s competitive edge,” he said.
According to Coega, at the heart of the partnership is a comprehensive framework for collaboration that will enable the establishment of critical infrastructure, such as a food and water analytical laboratory, to support industry standards. It will also advance climate and environmental technologies, including marine monitoring systems to mitigate coastal risks. It further creates opportunities to deploy circular economy solutions, modernise industrial capabilities through advanced manufacturing, and drive the growth of high-potential sectors such as agro-processing, aquaculture, aerospace and automotive manufacturing.
The agreement places strong emphasis on establishing an innovation and technology park and a fluorochemical strategic innovation programme at the Coega SEZ, Zone 7. Coega says this will be the economic hub for fluorochemicals, serving both domestic and global markets by beneficiating fluorspar.
Digital transformation cuts across all sectors in the partnership. Through proposed Digital Economy Innovation Programmes and the development of a digital hub, the partnership aims to support ICT-based small businesses, enhance digital skills, and position the Eastern Cape as a competitive player in the digital economy.
