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The Nelson Mandela Bay Business Chamber has welcomed the signing of a Memorandum of Agreement (MOA) between Flourchemicals South Africa (Pty) Ltd, the Technology Innovation Agency (TIA) and Nelson Mandela University to advance the Fluorochemicals Strategic Innovation Programme at the Coega Special Economic Zone (SEZ), describing it as a transformative step towards establishing an entirely new industrial value chain in South Africa.
The agreement formalises the development and execution of a national programme aimed at creating a domestic fluorochemicals industry, unlocking the value of South Africa’s fluorspar reserves while reducing the country’s dependence on imported fluorochemicals.
The programme comes at a time when global demand for fluorochemicals is accelerating rapidly, driven by growth in sectors such as artificial intelligence, renewable energy, battery energy storage systems, electric vehicles, pharmaceuticals, nuclear energy and mineral processing.
Fluorochemicals South Africa plans to invest approximately R5.5 billion in the Coega SEZ, including R3 billion towards the construction of an Anhydrous Hydrogen Fluoride (AHF) plant and a further R2.5 billion in downstream manufacturing facilities.
The AHF facility is expected to create up to 300 direct jobs and approximately 2,100 indirect jobs, while additional employment opportunities are anticipated as downstream industries develop, including graphite processing and lithium iron phosphate (LFP) battery cell manufacturing.
Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen said the agreement represents one of the most significant industrial development opportunities to emerge in South Africa in recent years.
“This is not simply another investment announcement. It is the foundation of a new industrial ecosystem that has the potential to unlock billions of rand in value, strengthen South Africa’s manufacturing competitiveness and position Nelson Mandela Bay at the centre of industries that will define the future global economy.”
Van Huyssteen said the project aligns directly with the Chamber’s vision of building a more diversified, resilient and globally competitive regional economy.
“For decades, South Africa has exported raw materials and imported higher-value products. This initiative presents an opportunity to change that equation by advancing local beneficiation, developing advanced manufacturing capabilities and creating meaningful employment across an entirely new value chain.”
She added that Nelson Mandela Bay’s established manufacturing base, innovation capabilities, logistics infrastructure and strategic location made it the natural home for the industry.
“As the world accelerates investment in clean energy technologies, access to critical industrial inputs and supply chains will become increasingly important. This investment positions Nelson Mandela Bay to play a leading role in that transition while strengthening our status as South Africa’s manufacturing capital.”
Van Huyssteen further noted that no country has achieved advanced industrialisation without a strong fluorochemicals sector and that the programme demonstrates how collaboration between industry, government and academia can unlock large-scale economic opportunities.
“The significance of this development extends far beyond Nelson Mandela Bay. It speaks directly to South Africa’s ability to industrialise, innovate and compete in high-growth sectors of the future. It is precisely the type of strategic investment the country needs to drive inclusive economic growth, localisation and long-term job creation.”
The Chamber congratulates all parties involved in bringing the initiative to this important stage and looks forward to supporting its successful implementation and expansion.
Fluorochemicals are a class of chemical compounds that contain carbon and fluorine atoms. Bound together by incredibly strong carbon-fluorine (C-F) bonds, these chemicals offer exceptional heat resistance, electrical stability, and water-repellency. They are essential across major industries, including electronics, automotive, refrigeration, and pharmaceuticals.
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Issued by:
Sibongile Dimbaza
Communications Officer
