THE Eastern Cape Development Corporation (ECDC) has disbursed R5.2-million to reward the job creation efforts of three Coega investors.
Through its Job Stimulus Fund the ECDC has in total committed more than R10-million’s worth of incentive grants to six Coega Industrial Development Zone (IDZ) investors.
The fund incentivises job creation through sector-specific, catalytic investments which stimulate sustainable new jobs across the value chain.
ECDC job fund manager Thabo Shenxane said the fund could also be used to assist in the retention of existing jobs within the provincial manufacturing sector in particular.
“This mandate links well with the general mandate of the ECDC, which is to finance businesses that create jobs in the Eastern Cape,” Shenxane said. The funding criteria take into account the strategic impact of the jobs created, sector prioritisation, spatial orientation and location and skills development.
“The approved funds are meant to subsidise the company payrolls to encourage them to maintain the jobs created and improve their cash flow,” Shenxane said.
The Job Stimulus Fund was launched in October 2011 and a total of 28 companies were approved for funding in the Nelson Mandela Bay area, which includes six companies based in the Coega IDZ.
The R5.2-million, which has already been disbursed, went to Dynamic Commodities staff through its business process specialists, Outsource, as well as to Discovery Health and Coega Dairy, with Cape Concentrate, Agni Steels and Bizworks still set to benefit.
Discovery Health has been awarded a R2-million incentive grant from the ECDC Job Stimulus Fund and had since inception spent in excess of R5-million on training and development in the city and was planning on having an employee headcount of 500 towards the end of this year.
Dynamic Commodities, a global leader in creating innovative food products, uses Outsource – a business process outsource specialist – to employ staff.
Outsource applied to the ECDC for the grant and to date has received the full allocation of R2-million.
“In this instance, more than 200 job opportunities have been created with a three-year continued endurance,” Cronje van Zyl of Outsource said.
Coega Dairy, which received R290000 of their R860 000 allocation, said the incentive provided a boost to the company.
CDC spokesman Ayanda Vilakazi said the incentives provided were essential to unlocking the potential in the job market.