Seven new investors with investors worth R239 million have signed up with the Eastern Cape's second IDZ.

The East London Industrial Development Zone netted seven new investors worth R239 million this year, despite gloomy economic conditions.

Most of the investors are South African-based companies looking to expand operations and are spread across the aquaculture, renewable energy, agro processing, construction and automotive industries.

The zone's previous investors were mostly automotive component suppliers to Mercedes-Benz SA. Total investment at the zone now tops R1 billion.

Although Elidz chief executive Simphiwe Kondlo was confident that they could attract more investors in 2009 - a year which will be marked by a slowdown in global economic growth - he said some potential investors have already placed projects on hold due to the economic conditions.

"2008 has been a very difficult year in the world economy, but we are blessed to be able to announce these investors. There is positive interest from investors, but also caution.

"They become more choosy about locations, so we need to sharpen our sell.

"There have been delays from investors who want more time to make their decisions," Kondlo said yesterday.

Concerns were raised by industrial property developers in the past that the IDZ was unfairly competing against them for clients . But Kondlo said it was "extremely important" for the IDZ to have local investors although their focus was to attract foreign direct investment.

"Having local investors in the IDZ is a positive trend. We have heard all over the world that local investors are key ... it is encouraging and sends the right message to all investors," he said.

Border-Kei Chamber of Business CEO Les Holbrook said their members have not recently raised such concerns.

"We support the concept that the IDZ should not compete with local property developers ... But I think these investors are a nice balance and a diversification away from the automotive industry," he said.

Kondlo said his goal was to attract a second automotive manufacturer to East London.