Coega boosts SMMEs

Over the past year, the Coega Development Corporation has awarded R30 million in contracts to small businesses in the Nelson Mandela Bay metro.

The Coega Development Corporation (CDC) recently invested millions into Eastern Cape-based small, medium and micro enterprises (SMMEs) to complete various construction projects in the Coega Special Economic Zone.

According to the CDC’s head of marketing and communication, Dr Ayanda Vilakazi, the corporation has awarded R30 million in contracts over the past 12 months to SMMEs from the Nelson Mandela Bay metro area.

The contracts include brickwork, electrical, structural steel, civil works and landscaping.

The construction of South Africa’s first factory to manufacture liquid petroleum gas cylinders for MM Engineering is underway, with contracts worth R22 246 847 allocated to SMMEs. 

 “When it is running at full capacity MM Engineering will be producing 3 200 metal gas cylinders a day. This is one of the first plants of its type in Africa. It will serve the local market, as well countries within the Southern African Development Community and international markets,” Vilakazi said.

Work on the factory started in May 2017 and is due to be completed by February 2018. SMMEs contracted to the project include Ascon Civil Engineering and YKW Projects, and they represent a portion of the 39 per cent of SMME participation achieved.

Owner of steel construction company YKW Projects Shaheed Nordien said the project his business got from the CDC will boost its profile.

“Getting these contracts means growth for my business. Currently we’ve got about 12 permanent employees and up to 50 contract workers,” said Nordien, who started his business nine years ago.

CCA Fencing was awarded a contract to replace fencing in the Coega Special Economic Zone (SEZ), which entails the removal of 11 kilometres of existing palisade fencing and its replacement with a more secure and durable system.

The project is due to be completed in August 2017.

More than R2 million of the project’s costs has been awarded to SMMEs Magma Civil Engineering Contractors, Construction Solutions and Ngingi Construction. The project has 36 per cent SMME participation.

“As an empowerment-driven organisation, the CDC is conscious of the important role that the small business sector plays in unlocking economic growth in Nelson Mandela Bay and South Africa.

Our dedicated SMME unit was specifically established in line with our vision to be a catalyst for championing socio-economic development,” said Vilakazi.

The third project is the building of the CDC’s Custom Control Area administration block in Zone 1 in the Coega SEZ. The contract value to SMMEs is R5 707 007.

Work on the Customs Control Area building started in February 2017, and is due to be completed by October 2017.

SMMEs involved in the construction include YKW Projects, Mamumde Trading Enterprise, Agnew Cabinets, Mothiscore, Ingakuhle Trading Enterprise, Mpuma Koloni Cooling and Electrical, Rulasaqa Plumbing and Ibhayi Achuma Trading.

Vilakazi notes that in the last financial year (2016/17), the CDC’s SMME procurement spend was around 38 per cent of the value of contracts managed by the company. This amounted to R776 million. The three projects have created over 171 jobs, benefitting local residents.