KUGOMPO CITY- The East London Industrial Development Zone SOC Ltd has unveiled digital infrastructure projects worth more than R330 million aimed at positioning the Eastern Cape as a competitive player in the global digital economy on 7th May 2026 in KuGompo City.
The announcement was made on Wednesday during the Eastern Cape Digital Economy Summit 2026, where provincial government leaders, investors and industry stakeholders toured several operational facilities within the zone.
The projects include a R76 million Tier III-aligned data centre funded by the Eastern Cape government, a R65 million business process outsourcing (BPO) and shared services facility supported by the Department of Trade, Industry and Competition and R181 million in broadband and undersea cable infrastructure funded through private sector investment.
Additional investments include a R2.8 million Digital Hub and a R5 million Cisco EDGE Centre focused on digital skills development.
ELIDZ Chief Executive Tembela Zweni said the developments marked the transition of the industrial zone into what he described as a ‘Zone 4.0’ operating model, where industrial capability and digital infrastructure operate as an integrated system.
“The digital economy in the Eastern Cape is no longer conceptual. It is operational, investable, and focused on execution,” Zweni said.
He said the zone’s role remained centred on reducing barriers to investment, but competitiveness now depended on reliable connectivity, digital systems, skills and innovation.
At the centre of the initiative is the new Tier III-aligned data centre, developed at a cost of R76 million. The facility has scalable capacity of up to 1MW across six data halls and is designed to meet international information security standards.
According to ELIDZ, the facility will allow government departments, state-owned entities and private companies to host systems locally, strengthening data sovereignty and improving digital resilience in the province.
Furthmore, the 800-seat BPO facility is expected to create about 2,400 direct jobs through multi-shift operations, targeting graduates and young professionals.
Provincial leaders said the investment formed part of a broader strategy to stimulate economic growth, strengthen digital infrastructure and create employment opportunities.
In addition Eastern Cape premier Oscar Mabuyane said the Covid-19 pandemic highlighted the importance of digital infrastructure in sustaining government services and supporting business continuity. Mabuyane said the province’s investment in digital infrastructure was intended to unlock opportunities in sectors such as manufacturing, tourism, agriculture and the ocean economy.
He said projects such as the Digital Hub and EDGE Centre would help support SMMEs, skills development and innovation, particularly among young people.
Eastern Cape MEC for economic development, environmental affairs and tourism Nonkqubela Pieters joined officials and industry representatives during the summit engagements.
ELIDZ said the next phase would focus on attracting partnerships and ensuring the facilities were fully utilised to drive investment and economic activity in the province.
The organisation said the integrated approach aimed to combine infrastructure, connectivity, innovation and skills development into a single platform capable of accelerating inclusive economic growth across the Eastern Cape.
Photographs: OTP/Supplied
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