Government remains upbeat about the Coega Industrial Development Zone (IDZ) and believes it will remain a major target of foreign direct investment (FDI).

In Minister of Finance’s Medium Term Budget Policy Statement, Trevor Manuel reiterated that in the year’s ahead, FDI would be supported by a continuously expanding Coega IDZ and the anticipated investment in the local motor industry.

The policy statement shows that the deficit on the current account was being primarily financed through increased inflows from abroad and this reached R22,6 billion in the second quarter of 2003. It also stated that net direct investment amounted to R1,3 billion but it remained a challenge to attract higher levels of foreign director investment.

He said that the Coega IDZ, which is in the process of negotiating a R18 billion investment with Pechiney for an aluminium smelter, could play a key role in increasing FDI.