Our new website has launched, click here to visit.


Coega Development Corporation
 
Coega Special Economic Zone
 
Coega Services
 
International Investors Trust Coega - published 15 Dec 2021



International Investors Trust Coega
Recent Investor Perception Survey shows

 

Gqeberha, South Africa, 14 December 2021 – The Coega Development Corporation (CDC) ends 2021 with positive feedback from its investors. Located in Africa’s leading Special Economic Zone and the preferred investment destination, in the City of Gqeberha, 83% of operational investors indicated that the Coega SEZ is a suitable location for their business; 91.6% said they would encourage other businesses to locate in the Coega SEZ, and 91.7% indicated that their businesses’ key performance indicators have improved since locating at the Coega SEZ. In addition, investors perceive Coega as a suitable location, that is secure, close to clients and the deepwater port of Ngqura.


Coega Sez Investor Perceptions Survey 2021

The CDC’s in-house Research Consultants conducted the investor perception survey from 14-30 September 2021. Feedback from investors was overwhelmingly positive, noting only minor areas for improvement.

The investor confidence illustrated by the survey supports Coega’s good performance results released in November 2021. Performance results show that the CDC exceeded its revenue generation target by 13% (Target: R450m vs Actual: R508.7m), and growth in client portfolio of external services by 165% (Target: R2bn vs Actual: R5.3bn), as well as achieving a “clean audit” opinion from the Auditor-General of South Africa (AGSA) despite challenges stemming from the COVID-19 pandemic.

The positive feedback from investors demonstrates that the SEZ programme is working. Special Economic Zones (SEZs), are geographically designated areas of a country set aside for specifically targeted economic activities, supported through special arrangements (that may include laws) and systems that are often different from those that apply in the rest of the country. The 2014/15 – 2016/17 Industrial Policy Action Plan (IPAP) identifies SEZs as key contributors to economic development. They are growth engines towards government’s strategic objectives of industrialisation, regional development, and employment creation.

For more information, find the CDC’s Integrated Annual Report 2020/21 on www.coega.co.za > document library > CDC annual reports.

NOTE TO EDITOR
Even though a large number (50%) of Coega investors were positive with the investment incentives opportunities, more can still be done to put emphasis on incentives and broader benefits for investors.

SEZ incentives include:

  • Preferential 15% Corporate Tax:
    Businesses (prescribed in section 24(4) of the SEZ Act) that are in a Special Economic Zone may be eligible for tax relief, including the reduced rate of corporate income taxation. In addition to satisfying the requirements of the SEZ Act, further criteria for some of the available tax incentives are stipulated in the Income Tax Act, 1962 (Act No. 58 of 1962.)

  • Building Allowance
    Businesses and Operators (prescribed in section 1of the SEZ Act) operating within a Special Economic Zone may be eligible for tax relief, including the building allowance, subject to requirements contained in the Income Tax Act.
  • Employment Incentive
    Businesses and Operators operating within a Special Economic Zone may be eligible for tax relief, including the employment tax incentive subject to requirements contained in the Employment Tax Incentive Act, 2013 (Act No. 26 of 2013).

  • Customs Controlled Area
    Businesses and Operators located within a customs-controlled area of a Special Economic Zone will be eligible for tax relief as per the Value-Added Tax Act, 1991 (Act No. 89 of 1991), the Customs and Excise Act, 1964 (Act No. 91 of 1964), the Customs Duty Act 2014 (Act No. 30 of 2014) and the Customs Control Act, 2014 (Act No.31 of 2014).

  • 12I Tax Allowance
    The 12I Tax Incentive is designed to support Greenfield investments (i.e., new industrial projects that utilise only new and unused manufacturing assets), as well as Brownfield investments (i.e. expansions or upgrades of existing industrial projects). The new incentive offers support for both capital investment and training.

 

Home | Media Centre | Newsletter | Tenders | Link | Contact us | Disclaimer | Copyright © 2022 Coega Development Corporation (Pty) Ltd
Useful Links »