Coega IDZ to test South Africa’s global competitiveness

South Africa is on a mission to position the Coega Industrial Development Zone (Coega IDZ) in the Eastern Cape at the centre of global industrial growth.

The Select Committee on Economic Development and Trade has called for urgent action to transform Coega IDZ into a fully operational engine of job creation, exports, and industrial output.

As part of this mission, the committee has embarked on a week-long oversight visit to the facilities.

TURNING INVESTMENT INTO IMPACT

During its visit from 20 to 23 October 2025, the committee will assess progress at Coega IDZ and the nearby Markman Industrial Park in Gqeberha.

The committee’s Chairperson, Sonja Boshoff, said the goal is to ensure that Coega’s ambitious projects materialise into real production.

The committee has particular focus on the plan to ensure actual production of green hydrogen and green ammonia in the region.

“Government has invested heavily to create the enabling environment. The private sector has made commitments,” Boshoff said. 

“The time has now come to see operational results, with real jobs, local procurement opportunities and improved export performance,” she further added.

COEGA IDZ AT THE HEART OF INDUSTRIALISATION

As South Africa’s largest Special Economic Zone, Coega has received R4.2 billion in state funding.

Additionally, it has unlocked R12.5 billion in private investment from both local and international companies.

The committee has insisted that these partnerships deliver measurable results.

The results include operational factories, the exporting of products, and the employment of South Africans.

Boshoff emphasised that Coega’s role in industrialisation goes beyond infrastructure. 

“Coega must be more than a strategic asset on paper; it must be a driver of inclusive growth in reality,” she said.

EASTERN CAPE PUSHES FOR ECONOMIC RESILIENCE

The visit comes as the Eastern Cape grapples with an unemployment rate above 40%.

This includes the recent retrenchments in the automotive sector, such as the closure of Goodyear’s Kariega plant.

Boshoff has called for Coega IDZ to strategically position itself to cushion economic shocks and promote diversification.

“This SEZ cannot exist in isolation. It must be the engine room that drives industrial diversification, attracts new investment and safeguards South African jobs in the face of global uncertainty,” she said.

OVERSIGHT VISIT BY SELECT COMMITTEE ON ECONOMIC DEVELOPMENT AND TRADE – DAY 2

Mr. Wandisile Makwabe, Acting Executive Director for Economic Development, Tourism and Agriculture, emphasized the importance of the oversight visit. https://t.co/HWiCYz31rl pic.twitter.com/CwmxNfJ9zo

— Nelson Mandela Bay Municipality (@NMandelaBaymuni) October 21, 2025

BUILDING CONFIDENCE IN GLOBAL MARKETS USING COEGA IDZ

Beyond job creation, the committee wants Coega IDZ to boost South Africa’s competitiveness amid global trade disruptions, such as the proposed US export taxes that could affect local manufacturers.

Boshoff said robust mitigation strategies are needed to reassure investors.

She concluded that Coega remains a “test case” for South Africa’s ability to compete globally. 

“With strong public investment, growing private participation and strategic sector opportunities in green energy and pharmaceuticals, this SEZ has every ingredient for success. What we expect now is delivery, delivery in jobs, delivery in exports, delivery in industrial capacity, and delivery for the people of South Africa,” she added.

DO YOU THINK COEGA IDZ WILL BECOME A GLOBAL GIANT ANYTIME SOON?