Municipal Focus Volume 68

THE COEGA DEVELOPMENT CORPORATION (COEGA) SETS THE BAR HIGH

The AGSA presented awards to government departments and public entities that achieved clean audit results.

Being recognised for its commitment to financial excellence is testament to the hard work and dedication of the entire Coega team and its stakeholders in ensuring that the organisation complies with good governance and financial management standards in accordance with the PFMA and other related National Treasury Prescripts.

By attaining yet another clean audit, Coega has reinforced its reputation as a reliable and trustworthy entity, positioning itself as an attractive partner for local and global investors and stakeholders.

Particularly, this award recognises the following achievements that Coega strives for, every year:

• A full commitment to excellence, including sustained clean audit outcomes.

COEGA RECEIVES ITS 4TH CONSECUTIVE AUDIT

Coega Development Corporation (Coega received the Public Finance Management Act (PFMA) Clean Audit Award for the financial year 2022/23 from the Auditor

General South Africa (AGSA), at the Premier's 2023 Year End Reflections glittering event hosted by the Eastern Cape Province hosted on Wednesday, 13 December 2023 in East London.

• A full commitment to Good Governance and controls and systems that clients and partners can rely on.

• Credible financial statements fully aligned to international financial reporting standards.

• No areas of noncompliance or findings on the reported performance identified by the Auditor-General of South Africa.

“Coega's financial management practices adhere to the highest standards of transparency and accountability, reassuring tenants, stakeholders, partners, and clients, and boosting public confidence in general.

Such recognition reflects the concerted efforts made by Coega's finance team, management, and employees to maintain strict compliance with applicable legislation and financial regulations, as well as the optimal use of resources. By attaining yet another clean audit for the fourth consecutive year, Coega has reinforced its reputation as a reliable and trustworthy entity, positioning itself as an attractive partner for local and global investors and stakeholders,” says Mr. Rodger Hill, Coega’s Chief Financial Officer (CFO).

Moreover, sustaining a clean audit signifies that Coega has maintained the financial controls and systems, whilst reducing the likelihood of financial irregularities, fraud, and mismanagement. By upholding financial discipline, Coega not only mitigates financial risks but also aligns with international best practices, establishing a solid foundation to stimulate sustainable economic growth and development.

This creates an opportunity for the organisation to assist other stateowned entities and government departments to achieve the same.

During the year, Coega secured nine (9) new investors, with a combined investment value of R1.224 billion, underscoring the Coega Special Economic Zone (SEZ) as a preferred investment destination, and leader in African SEZ operations and development. These investments span various sectors, including logistics, agro-processing, chemical, and general manufacturing clusters.

Additionally, Coega has made a substantial contribution to job

creation during the financial year, contributing a total of 15 222 jobs created (5 844 construction and 9 378 accumulative operational jobs).

Furthermore, the organisation trained over 3 932 people. In terms of both SEZ and non-SEZ programmes, the organisation generated an impressive overall revenue of R609.3 million.

To-date, Coega is home to 58 operational investors across diverse sectors (and growing), with a combined investment value of R11.96 billion. Notably, the Coega SEZ stands out as a preferred investment destination, with approximately 31% of investments being Foreign Direct Investment (FDI), ranging from small, medium, and micro enterprises (SMMEs) to large global exporters.

Coega has also excelled in SMME procurement spend, achieving a remarkable 47.93% for the 2022/23 FY, in line with its vision to be a leading catalyst for the championing of socio-economic development.

In addition, Coega has achieved a Level 1 B-BBEE certificate, improving from Level 3, last year.

The Corporation’s good performance is a result of its position as a plug and play investment destination, diversification strategy in terms of revenue generation, market development into the African continent, and its reputable global brand image. The Corporation’s focus is centered on achieving impact and outcome statements, namely, financial sustainability, increased strategic economic advantage for targeted industries, and economic opportunities for the marginalised.

Looking ahead, Mr. Rodger Hill expressed confidence about the

current financial year’s performance:

“Coega has already signed four (4) new investors with an investment value of R385 million in the first quarter (April to June 2023), while in September the Stellantis Group confirmed a R3 billion investment set to be operational in early 2026 in line with the Group’s Dare Forward Strategy. The CKD plant is earmarked to manufacture 50 000 vehicles, with capacity to achieve 90 000.

Coega is optimistic about its forecasted performance for the remaining six months of the financial year to March 2024, as the organisation continues to be engaged in various government infrastructure development and maintenance projects throughout South Africa, and other projects throughout the continent as an Implementing Agent of Choice.”

Sustaining a clean audit signifies that Coega has maintained the financial controls and systems, whilst reducing the likelihood of financial irregularities, fraud, and mismanagement. By upholding financial discipline, Coega not only mitigates financial risks but also aligns with international best practices, establishing a solid foundation to stimulate sustainable economic growth and development.

This creates an opportunity for the organisation to assist other stateowned entities and government departments to achieve the same.

Coega remains steadfast in maintaining its clean audit status going forward through good corporate governance, as the organisation continues to implement its Five- Year Strategic Plan 2020/21 – 2024/2025, endorsed by its shareholder and Board of Directors, and supported by partners and stakeholders, concludes Hill.

COEGA COMPLETES THREE EC SCHOOL INFRASTRUCTURE PROJECTS VALUED AT OVER R185 MILLION

The Coega Development Corporation (Coega) is proud to announce the successful completion of three key educational institution projects in the Eastern Cape Province that were commissioned by the Department of Education (DoE).

These transformative projects, which began in 2017, have now reached practical completion and are set to significantly impact the educational landscape in the region, says Dr Ayanda Vilakazi, Coega’s Head of Marketing, Brand and Communications.

The projects, which include Cebe Junior Secondary School, Krazukile Senior Secondary School (SSS), and Tyali High School, located in Centani, have a combined value of over R185 million. These educational

institutions are key in providing quality education to the local community and will help contribute to building a brighter future for the students.

Coega is pleased to have served as the Trusted Implementing Agent (IA) of Choice for these important projects and is proud of the significant impact they will have on the local community. The completion of these projects demonstrates Coega’s commitment to delivering high-quality infrastructure that supports and enhances education in the Eastern Cape Province.

Mr. Siyabulela Ntanta, Coega Programme Manager, said that as Coega concludes the year on a high note, the organisation looks forward to the positive impact these completed projects will have on the educational sector in the Eastern Cape Province in 2024. “We remain committed to partnering with the Department of Education and other stakeholders to contribute to the development and improvement of educational facilities in the region.

We take immense pride in the impactful work we undertake for local communities, enriching the lives of learners and contributing to the broader landscape of education for all.

These projects stand as a testament to our commitment to advancing educational infrastructure and cultivating environments conducive to learning. The unique scope of each school project we undertake as Coega aligns with our goal of delivering quality educational facilities, on time, within scope and budget,” says Ntanta.

Cebe Junior Secondary School, valued at R59 million, has successfully reached practical completion. The project generated 89 jobs, allocating 33.75% procurement spend to local SMMEs, and included the construction of new classrooms, an administration block, a science lab, and various other facilities. The attentive planning and execution are evident in the project’s successful outcome.

Krazukile Senior Secondary School, with a project value of R52 million, showcases Coega’s commitment to education development. The project involved the construction of 2 new classrooms, an administration block, a science lab, and multipurpose and library facilities, among others.

The project, having created 75 jobs, with 34.7% of the construction work awarded to local SMMEs.

Tyali High School, with an investment value of R74 million, is another testament to Coega’s dedication to education infrastructure. The project, now practically complete, involves the construction of 14 new classrooms, an administration block, a science lab, library, and more. With 84 jobs created and 24.60% of the project benefiting SMMEs, this school stands as a model for comprehensive educational development.

Ms. Nokuzola Bota, Coega Project Manager, outlines the comprehensive nature of project execution: “The overview of the execution includes initiation, planning, execution, monitoring and control, and closure. Each phase is undertaken to ensure the success and sustainability of the project. From the initial stages of planning to the monitoring and control throughout implementation, our approach is strategic and thorough. The final phase of closure signifies the fulfilment of our commitment to delivering quality outcomes.

“This execution framework reflects our dedication to excellence in every aspect of project management. We ensure that every project we embark upon leaves a lasting and positive impact on the communities we serve," adds Ms. Bota.

Coega remains steadfast in contributing to the growth and enhancement of educational infrastructure, fostering a brighter future for communities. The successful completion of these projects, with due consideration for local economic upliftment and job creation, reflects Coega’s dedication to socio-economic development in line with its vision of being a leading catalyst for championing of the socio-economic development.

Therefore, Coega continues to be a beacon of hope, forming partnerships with stakeholders in the delivery and maintenance of infrastructure projects throughout the country and the African continent, concludes Dr Vilakazi. 