Coega to assist small contractors
Lucky Khumalo
15 December 2004
The Coega Development Corporation (CDC) in the Eastern Cape is to sign agreements with some banks in the country in a bid to assist emerging contractors operating in the Coega Industrial Development Zone (IDZ).
The IDZ is one of the government's high priority projects, with the potential to bring about significant economic benefits to the Eastern Cape region, create employment, energise industrial development and promote international trade.
It consists of 11 hectares of industrial land, with the vision to turn South Africa into the manufacturing centre of the world.
"It has always been the government's aim to assist the development of small, medium and micro enterprises that they should have access to bridging finance from all our financial institutions," CDC Enterprise Development Manager Nokwanda Benya, said.
Benya said once an understanding between the CDC and some financial institutions has been reached, "it will be easy to
monitor the contractors and there will be minimal risks as we will be responsible for their mentorship for the duration of the contract period".
According to a statement released by the CDC, contracts to the value of over R800-million have been awarded in the construction of basic infrastructure in the IDZ since 2001.
"The historic agreement between the government-owned CDC and one of South Africa's major banks will lead to the offering of low-cost finance to develop contractors working in the Coega project, the statement said.
One of the projects is the nearby deepwater port of Ngqura that is being built at a cost of R3.2-billion.
At the signing ceremony in Port Elizabeth, Standard Bank Eastern Cape Director, Mpumzi Pupuma said the bank will provide loans to companies which qualified in terms of the SMME lending criteria, subject to some terms and conditions.
"The memorandum aims at formalising existing arrangements between the bank and the CDC. It is
about helping to develop contractors to access funding and showing commitment to the people of the Eastern Cape.
"The CDC is working towards mitigating the risks and this helps developing contractors to acquire cash discounts," Pupuma added.
Benya sais the agreement is an enabling mechanism for the CDC to deliver on its mandate through this collaboration with Standard Bank.
"This will cultivate a point of reference for our emerging businesses without them having to go through strenuous processes. This signifies an integration of activities in the implementation of strategies for both the CDC and Standard Bank, with the view to developing and supporting emerging businesses," added Benya.
Source: BuaNews
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