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After the founders: Will Coega and East London special economic zones thrive?
After the founders: Will Coega and East London special economic zones thrive?

Daily Maverick

time17-06-2025

  • Business
  • Daily Maverick

After the founders: Will Coega and East London special economic zones thrive?

There has been significant change in the leadership of the special economic zones in the Eastern Cape, from the chief executives in charge of day-to-day operations to the chairpersons of the boards who exercise oversight over the entities. In the last year, Coega Development Corporation longtimer Themba Khoza took over the reins as CEO of the corporation with Advocate Luvuyo Bono (DBA) assuming chairpersonship of the board. At the East London industrial development zone, another longtimer, Thembela Zweni, has succeeded Simphiwe Kondlo as CEO, with businessman Motse Mfuleni becoming the chairperson of the board. A range of other changes have taken place at executive levels in both organisations, signifying the bringing in of new blood and continuity. Transitions can be life changing for the survival of organisations, just as substitutions in sports games may make the difference between success and failure. As such, they bring excitement and concern. From a demographic perspective there is a generational shift in both executive and non-executive roles in most instances. I have had the privilege of watching some of the key individuals now in charge of these institutions grow professionally for the past 20 years, some in proximity and others at a distance. In many ways, it is fitting to see them succeed some of the leaders they themselves admired, worked with, or whose tutelage they were under. Perhaps some context is crucial. The special economic zones of the Eastern Cape became a crucial part of South Africa's attempt to drive export-oriented industrialisation within the first decade of democracy. First conceptualised in the passing of spatial development initiatives, they were among the first to attempt to broaden economic activities away from the three major metros of Johannesburg, Durban, and Cape Town. Development at the coast would not only ensure the hitherto marginalised regions would start seeing significant investments, they would also help accelerate the path towards export-oriented industrialisation. Forerunners That initial thinking morphed into the erstwhile Industrial Development Zones programme. Coega and East London were forerunners in that both were officially declared in the early 2000s. We could interpret the significant part of the early leadership of the SEZs to what one may call 'the old boys of St John's College' in Mthatha. Pepi Silinga and Simphiwe Kondlo both took over the reins as the concepts were gaining shape to lead the execution phases. They worked together with their corresponding business chambers and regional stakeholders from politicians to unionists. Key competencies at the time were as much about running infrastructure development and investment promotion initiatives as they were about the political acumen to mobilise resources. The latter was needed to ensure the survival of the organisations amid a barrage of attacks from stakeholders who were not completely convinced that the regions needed the nature of heavy industries that were the apparent anchor projects for these zones. The two chairpersons of the boards of the two entities are middle aged executives who have extensive experience starting and growing their own businesses, as well as serving on various boards. This entrepreneurial as opposed to a strongly corporate background should bring into the organisations a leadership approach that is adept, especially in survival skills. Those remain despite the long stint the organisations have had as running concerns. The organisations have never derived value from passive boards. Yes, the executive leadership of the entities has had great autonomy and space to lead operations without interference from the boards. However, the boards were never passive when it came to resource mobilisation and behind-the-scenes stakeholder engagement to guarantee a steady flow of resources. Further, politics is primary in development, and the CEO and chairperson of the board need to manage effective political relations close enough to mobilise support, but distant enough to avoid the trappings of the patronage networks that incumbent political leaders sometimes induce. In a conversation I had with Premier Oscar Mabuyane about where the Eastern Cape is and its ability to keep on securing resources and allocating them to our key projects, he was quick to point out that the fiscal instruments are no longer the same and the need for mutual collaboration has become greater now than it was back when these projects received significant allocations from the provincial government. We may not know the full behind the scenes details of these leaders, but their public exploits have been amazing. Mfuleni has grown his business in leaps and bounds. He has stayed the course in events management and other sectors and has been on various boards over the past 20 years, adept in both business and political acumen. Freedom Bono has had a long stint in business too, opting to remain outside of the mainstream routes in the legal profession so he could retain the freedom to focus on international labour law, business, and running his practice, among other things. They are positioned to champion the sustainability causes of the organisations they lead. Khoza and Zweni strike me as first and foremost stewards who will honour the legacies of their predecessors and bring in their own leadership to achieve greater success. This dual task is crucial. A sense of burden to distinguish oneself from the predecessor may lead a successor to stumble. Since they worked a long time with their predecessors, one expects that they remain inspired by their efforts as they are motivated to achieve a greater mission. As such, there should be recognition at the board level that these organisations have built significant internal leadership capacity to be left alone to continue to run operationally, while concurrently nudging them to stretch towards new aspirations as dictated by the times. There is a need to ensure rapid success, and much of the momentum gained over the years does position the organisations for greater success. Yet there is a need to adopt a strategy to push the organisations beyond their self-determined objectives, given the sense of urgency for radical change that the province dictates. DM

Automotive Business Council announces Gqeberha as host of 2025 SA Auto Week
Automotive Business Council announces Gqeberha as host of 2025 SA Auto Week

Daily Maverick

time10-06-2025

  • Automotive
  • Daily Maverick

Automotive Business Council announces Gqeberha as host of 2025 SA Auto Week

Naamsa, the Automotive Business Council, announced on Monday that Auto Week 2025 will be held in Gqeberha, Nelson Mandela Bay, from 1 to 3 October. Both the major automotive manufacturing showcases in the country, the Automotive Business Council's Auto Week and the Naacam Show 2025, hosted by the country's components industry, will be held in Nelson Mandela Bay this year, for the first time in history. The Automotive Business Council (Naamsa) announced on Monday that it was 'going back to their roots' and will hold its premier event, Auto Week 2025, in Gqeberha, Nelson Mandela Bay. The metro houses the biggest automotive manufacturing sector in South Africa and Gqeberha is the city where Naamsa was founded. It is home to almost half of the country's auto manufacturing and components sector. The event will be held in partnership with the Eastern Cape Provincial Government. Eastern Cape Premier Oscar Mabuyane said, 'We are ecstatic to form a partnership with Naamsa to host this lucrative event in our province, specifically in Gqeberha, a city that embodies our rich automotive heritage. 'As a province which hosts some of the biggest Original Equipment Manufacturers (OEMs), with a 38% contribution to the country's vehicle production, this opportunity is critical in fostering partnerships that will bring the much-needed investment into our provincial economy.' Founded in 1935 in Port Elizabeth, now known as Gqeberha, Auto Week 2025 will take place at the Coega Vulindlela Accommodation and Conference Centre, a premier facility owned and operated by the Coega Development Corporation. Naamsa CEO Mikel Mabasa said, 'It is profoundly symbolic that the SA Auto Week 2025 takes place in the city where Naamsa's journey began. This historic city, now a model for reindustrialisation, will convene all of us in October to map the next chapter of African automotive excellence. It is our strongest conviction that the automotive industry will change faster in the next decade than it has in the last century and that a strong foundation for change will be laid in Gqeberha.' Coega Development Corporation CEO Themba Koza said this was a milestone for the Coega Special Economic Zone. Automotive Manufacturer Stellantis is building its new R3-billion factory in the Coega Special Economic Zone. 'Bringing SA Auto Week to Coega is more than just an event, it's a powerful endorsement of what's possible when visionary leadership, enabling policy, and industrial capability align. We are proud to host global automotive leaders and stakeholders at our world-class Special Economic Zone. This is a moment of pride for the Eastern Cape and a catalyst for future growth,' Koza added. The Coega Special Economic Zone houses several leading global manufacturers such as BAIC and FAW Trucks, alongside component suppliers including Grupo Antolin, Faurecia, Hella, Rehau and Schnellecke Automotive. The theme for Auto Week will be, 'Reimagining the Future, Together: Cultivating Inclusive Growth and Shared Prosperity'. Auto Week 2025 will happen hot on the heels of the National Association of Automotive Component and Allied Manufacturers' Naacam Show that will be held at the Boardwalk International Conference Centre in August. Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen said the chamber was excited about the holding of both showcases in Nelson Mandela Bay this year. She said the decision to host the events in the Bay reinforced the importance of the metro as an automotive manufacturing hub on the African continent. 'This is the first time in the history of our metro that both of these major automotive events are taking place here in the same year,' Van Huyssteen said. 'The fact that both of these events are being held here underscores the depth of the automotive ecosystem which is based in the Bay, which encompasses a wide range of automotive components right through to the assembly of passenger cars, light commercial vehicles and trucks,' she said. DM

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