Coega boosts SMMEs

Vuk'uzenzele - - General - Siya Miti

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.

The Coega De­vel­op­ment Cor­po­ra­tion has a ded­i­cated unit to sup­port SMMEs.

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