President Ramaphosa Praises Eastern Cape for Economic Boost Through Ports and Coega SEZ

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President Cyril Ramaphosa

President Cyril Ramaphosa has praised the Eastern Cape for investment projects it has initiated to boost the economy through its ports and the Coega Special Economic Zone. Speaking during his two-day oversight visit to the Nelson Mandela Bay Metro, Ramaphosa highlighted the province’s efforts to leverage its strategic assets for economic growth and job creation.

A Strategic Visit to Port of Ngqura

The President’s visit began with a briefing at the Port of Ngqura, one of South Africa’s newest and deepest-water ports, designed for high-efficiency container handling. Ramaphosa described the inspection as “a most impressive inspection visit,” noting the port’s potential to attract larger vessels and drive economic development. “We’ve come here to the Port of Ngqura on an inspection visit just to come and see how the port is operating and what the developmental opportunities there are with regard to taking this port to a much higher level,” he said.

Transnet, led by CEO Michelle Phillips, presented plans to upgrade the port, including new cranes installed in 2024 that have reduced ship turnaround times by 15%. The port is a key export hub for raw minerals, agricultural products like citrus, and automotive components, with significant trade links to markets in the Middle East following Ramaphosa’s 2022 visit to Saudi Arabia. The port also plays a critical role in assembling wind turbines for renewable energy projects, supporting wind farms in the Eastern Cape, Western Cape, and Free State.

Coega SEZ: A Hub of Investment

The Coega Special Economic Zone (SEZ), located near the Port of Ngqura, was a focal point of Ramaphosa’s visit. As of 2024, the SEZ hosts 45 investors with projects worth R9.9 billion, including Beijing Automotive’s R11 billion plant, which employs 2,000 people. The President praised the SEZ’s contribution to job creation and economic diversification, particularly in automotive manufacturing and agriculture. “We want to double and triple the number of people who are employed here,” Ramaphosa said, emphasising the need for both government and private sector investment.

The Coega SEZ is strategically aligned with the Port of Ngqura, positioning the region as a transshipment hub for Southern Africa. Ramaphosa noted South Africa’s natural advantages, with “almost 2.8 kilometers of seawater” and major ports like Durban, Cape Town, East London, and Richards Bay. “We are well-endowed with huge wonderful natural resources which we need to exploit to a higher level,” he added, referencing the country’s Oceans Economy Master Plan.

Addressing Local Challenges

Beyond economic achievements, Ramaphosa’s visit addressed pressing socio-economic issues in the Eastern Cape. During a meeting with the African National Congress (ANC) Provincial Executive Committee (PEC), led by Premier Oscar Mabuyane, the President discussed challenges such as corruption, crime, water provision, and crumbling road infrastructure. Extortion syndicates demanding protection fees from businesses in areas like Gqeberha, Mthatha, and Butterworth were highlighted as a growing concern. Minister of Police Senzo Mchunu, the convenor of ANC deployees in the province, is expected to address this issue.

The President also engaged with the provincial cabinet, joined by ministers including Water and Sanitation Minister Pemmy Majodina, Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa, and Transport Minister Barbara Creecy. Discussions focused on improving municipal performance, water boards, and bulk infrastructure. Majodina’s recent opening of a water purification plant in the Sarah Baartman District Municipality underscores ongoing efforts to enhance water security, while Operation Vulindlela, led by the South African National Defence Force, is rebuilding roads and bridges damaged by natural disasters.

A Tragic Incident at Walter Sisulu University

The visit was overshadowed by a tragic shooting at Walter Sisulu University in Mthatha, where three students were shot, one fatally, allegedly by a residence manager. Eastern Cape Transport MEC Xolile Nqatha called for peaceful resolution of conflicts, and authorities are investigating. While Ramaphosa did not comment directly during the visit, he is expected to address the incident during his engagements on 16 April, particularly in discussions with Premier Mabuyane.

Government of National Unity and Economic Outlook

Ramaphosa’s oversight visit also touched on the Government of National Unity (GNU) reset discussions, with the ANC seeking to address tensions with the Democratic Alliance. While no specific outcomes were announced, the President’s engagement with the PEC suggests a focus on aligning national and provincial priorities to tackle economic and social challenges.

The Eastern Cape faces significant hurdles, with 45% of municipalities in financial distress and sectors like automotive manufacturing at risk from new US export tariffs imposed by the Trump administration. However, opportunities abound, with the EU’s recent 4.7 billion euro investment package aimed at supporting South Africa’s renewable energy and clean hydrogen sectors. These investments could further bolster the Eastern Cape’s renewable energy projects, including wind turbine assembly at the Port of Ngqura.

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