R30-million Coega contracts boost for SMMEs
23 August 2017 | Web Article Number:
SMALL, Medium and Micro Enterprises (SMMEs) in the Eastern Cape are getting a much-needed boost from the Coega Development Corporation (CDC) following its investment of R30 million in SMMEs to complete various construction projects in the Coega Special Economic Zone (SEZ)
“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 to support SMMEs, in line with our vision to be a catalyst for championing of the socio-economic development,” said Dr Ayanda Vilakazi, Head of Marketing and Communications at the Coega Development Corporation.
The contracts to SMMEs from the Nelson Mandela Bay metro were awarded over a time period of 12 months and include three projects, namely CCA Fencing, MM Engineering and Custom Control Area - Building in Zone 1. The construction work on these projects includes brickwork, electrical, structural steel, civil works and landscaping, amongst others.
CCA Fencing sees the replacement of fencing in the Coega SEZ, which entails the removal of 11 kilometres of existing palisade fencing and its replacement with a more secure and durable system, is due to be completed in August 2017. More than R2 million of the project costs has been awarded to SMMEs Magma Civil Engineering Contractors, Construction Solutions and Ngingi Construction. The project compromises 36% SMME participation.
Another project currently being implemented is the construction of South Africa’s first factory to manufacture liquid petroleum gas cylinders for MM Engineering, with contracts worth R22 246 847 allocated to SMMEs. Work on the factory started in May 2017 and is due to be completed by February 2018. SMMEs contracted to the project to date include Ascon Civil Engineering and Y.K.W. Projects, and they represent a portion of the 39% SMME participation achieved.
“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 (SADC) and international markets,” said Vilakazi.
The third project is the building of a CDC’s Custom Control Area administration block in Zone 1 (Logistics Cluster) in the Coega SEZ, where 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 that are 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 noted that in the last financial year 2016/17, the CDC’s SMME procurement spend was around 38% of the value of contracts managed by the company. This amounted to R776 million. All three projects have created over 171 jobs, with local residents as beneficiaries.
“Once again, the CDC is, through these projects, leading the way for real transformation and skills development to take place in the Eastern Cape.”