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Coega SEZ faces juggling act amid Covid-19-impacted business environment

9th June 2020

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

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Special economic zone (SEZ) operator, the Coega Development Corporation (CDC), like many other operators of SEZs, is facing an unprecedented operating environment with some of its zone’s investors being operational, while others are only partially operational and others not operating at all.

Operator of the Coega SEZ in Nelson Mandela Bay municipality, in the Eastern Cape, the CDC points out that with Covid-19 prevailing, foreign investors are looking from a distance at how the African continent responds to Covid-19.

The CDC notes that investors are looking for markets that will ease disruptions in their production chains, be swift to implement measures to stimulate economic recovery and growth and provide policy certainty amid a global challenge. 

However, as both domestic and foreign direct investment (FDI) destinations, SEZs are not exempted from the “carnage” that has affected many businesses, notes the CDC in a statement.

In the current situation, the CDC has found the going to be very tough, with the company attributing this to many investors in the SEZ operating at below capacity and others not operating at all during the national lockdown, putting serious strain on the financial sustainability of the organisation.

The CDC’s challenges during the Covid-19 pandemic includes facing two vastly different operating scenarios that change according to the different alert levels of the lockdown currently in effect.

On the one side, there is a need to provide essential services to some of the investors located in the SEZ, while others are undertaking little to no economic activity. On the other hand, the CDC points out that it is struggling to reduce the cost of operations during the lockdown period, and is faced with at the same time, no rental income from some of the investors. This poses a challenge for the cash flow for the organisation.

Appreciating the enormous challenges faced by its investors located at the SEZ to sustain their businesses during this trying period, the CDC notes, has resulted a sense of great responsibility on many levels.

However, the company also states that according to health experts, the worst is yet to come regarding the Covid-19 pandemic.The CDC states that it remains resolute that if it works, together with its stakeholders, to implement the stringent measures required to survive during this difficult time, there is a chance that, through unity, the SEZ and its investors can achieve their business objectives.

Knowing that the organisation must cope with the ‘new normal', the CDC has implemented operational measures for business continuity. Key among those is providing employees with the tools of trade needed to remain productive while working from home during the lockdown period.

Conducting most of its business through online systems, the CDC is holding online meetings with local and international clients, investors and stakeholders to increase the investment pipeline and attract FDI into the Coega SEZ.

The CDC has also implemented a virtual tour for prospective investors to see development of the zone and available service land for investment purposes – this can be viewed on the Coega website.

SEZ TASK TEAM

The CDC’s Covid-19 Task Team provides strategic and operational guidance to the organisation and continues to do so during the various stages of the alert levels of the lockdown to effectively curb the spread of the pandemic and ensure the organisation complies with the published government regulations.

Some of the steps taken by this team include extending the CDC’s health and safety wellness clinic services to include the testing for Covid-19 by qualified physicians, compulsory screening at all entry points using hand-held devices and measuring temperature using non-touch forehead thermometers.

This is backed up with stringent security measures at access points in the SEZ, which include checking driver and vehicle licence verifications, required permits as per the published regulations, and screening process.

In addition, the CDC has put up Covid-19 signage and information material in the CDC foyers, on all floors and entrances, in all boardrooms, as well as created on dedicated Covid-19 online portal to create awareness.

The CDC has also placed safety, health and environment representatives throughout the organisation to monitor the implementation of Covid-19 protocols and ensure compliance with the published regulations.

Throughout Coega, the CDC has also ensured the frequent cleaning of common areas, such as elevators, door handles, lavatories and other facilities and placed sanitisers at all entry points, board rooms, ablution facilities and reception areas.

Other mechanisms of ensuring a safe working environment include the use of personal protective equipment, which the CDC has provided to staff, and complying with keeping physical distancing from each other when at the office, including non-sharing of work spaces.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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