THE Coega Development Corporation added a remarkable 15,222 jobs between April 2022 and March 2023. The organisation is certainly delivering on its vision to be a catalyst for socio-economic development.
The 15,222 total jobs created comprise 5,844 construction jobs and 9,378 accumulative operational jobs in the Coega Special Economic Zone (SEZ).
Part of Coega’s job creation success can be ascribed to the development corporation’s ability to attract sustainable investments in the SEZ, and the growth of its reputation as a trusted infrastructure implementing agent of choice in the country and beyond its borders through the Coega Africa Programme (CAP).
The country currently faces a 32.6% unemployment rate, according to Stats SA. Empirical studies have shown that economic growth tends to be positively associated with job creation. But, with national growth rates ranging between -1,1% and 1,8% over the four quarters from April 2022 and March 2023., sluggish national economic growth is not sufficient. Interestingly, Stats SA’s experimental provincial GDP estimates released on September 26 indicate that only Gauteng (2,8%), the Western Cape (2,6%) and the Eastern Cape (2,1%) experienced economic growth rates higher than the national average (1,9%) in 2022.
Head of Coega’s human capital solutions unit, Craig Luckman says the reasons behind the remarkable job creation achievement are both the economic environment and a focus on training and skills development – and that the two are not mutually exclusive when enhancing job creation.
“The majority of the reported jobs created, emanate from business entities that have established operations within the Coega Special Economic Zone and the Nelson Mandela Bay Logistics Park. These are primarily in the manufacturing, processing and services sectors. Coega favours targeted industries with higher levels of job creation. The establishment and maintenance of a conducive operational environment, with enhanced support services provided by Coega, serves to be the catalyst for ongoing expansions amongst the operational investors, with the resultant continued growth in job creation,” Luckman says.
Coega’s approach to job creation is rooted in its dedication to skills development and comprehensive training programmes that are offered to communities, and a special focus on youth, women, and persons with disabilities.
“Coega also facilitates technical skills training through the Coega Skills Development Centre, with focussed training aligned to industry requirements to enhance the probability of beneficiaries and trainees acquiring meaningful employment after such training. Skills development funding remains an ongoing challenge, as Coega mostly relies on limited funding support from the various Sector Education and Training Authorities (SETAs) to enable such skills training.
Technical skills training is expensive and acquiring sufficient funding for skills development is an ongoing challenge,” Luckman says.
Excluding the R3 billion Stellantis investment, Coegasecured four investors, with a combined investment value of over R385.2 million in the first quarter of this financial year 2023/24, and seeks to build upon its achievements by attracting further investment, expanding its infrastructure portfolios, and diversifying its economic base. By placing emphasis on emerging sectors such as renewable energy, agro-processing, and information technology, Luckman says that the jobs reported on are across all levels of employment, with the majority as with most organisations being at the lower to mid-level.
Of the 9,378 accumulative operational jobs created, more than half (53%) are either in the agro-processing (28%) or automotive (25%) sectors. Logistics accounts for 17% and BPO 16%. The other sector above 5% is metals at 6%. Chemicals accounts for 3% and the construction sector 2%. On their own, light manufacturing, energy, manufacturing and mining sectors account for less than 2% of the new jobs created.
Luckman says that the Eastern Cape experiences the effects of urbanisation from the eastern part of the Eastern Cape, but not to the extent of Cape Town and Gauteng. With regards to skills migrating out of the province, he says, “local semi-skilled and skilled employees tend to remain locally except artisans in the oil and gas shutdown maintenance space and bulk liquid tank fabrication. Special steels welders and grinders are very mobile and follow projects. Skills retention is also ensured through competitive remuneration and large projects at Coega attract job seekers at all skill levels.”
To achieve its objectives, Coega acknowledges the paramount significance of collaboration and partnerships. By nurturing relationships with local and international investors, industry stakeholders, and government entities, Coega harnesses collective expertise, resources, and market opportunities. Furthermore, Coega remains unwavering in its commitment to maintaining a transparent and investor-friendly environment, ensuring a conducive business climate that attracts both domestic and foreign investments.
