South Africa’s evolving energy landscape is creating opportunities for investors, financiers, project developers, component manufacturers and suppliers wanting to invest in the energy services market. This is why many even refer to Cape Town as Africa’s “green economy hub”, as it is the ideal location from which to tap into South Africa’s energy services and other green technology markets.
On December 6, 2018, the Atlantis Special Economic Zone (SEZ) was officially launched by President Cyril Ramaphosa. Now, the greentech sector is flagged for growth and it is estimated that it could be worth approximately R110.5 billion (US$7.8 billion) by 2035. This makes it a highly valuable industry for those who are looking to make a good return on investment while getting involved in an exciting sector.
The Atlantis Greentech Special Economic Zone
Owing in part to Cape Town’s thriving green economy, the city is home to the Atlantis Greentech SEZ. This epicentre of greentech activities offers opportunities and incentives to investors from all around Africa and the world at large. In fact, the Atlantis SEZ is expected to attract approximately R3.7billion (US$262million) in investment over the next two decades.
The objective of establishing the Atlantis SEZ is to unlock the underlying economic value of existing and underutilized infrastructure through the creation of a greentech manufacturing hub. Wind turbines, solar panels, insulation, biofuels, electric vehicles, materials recycling and green building materials are all examples of initiatives that could find a place here in the future.
“The Special Economic Zone programme has been identified as one of the critical economic policy instruments for promoting industrialization.” President Ramaphosa
Why Invest in Cape Town’s Atlantis Greentech SEZ?
A number of companies in the green economy have their headquarters in Cape Town and span across the economic clusters of solar photovoltaic manufacturing, electrical manufacturing, fuel supply, professional services and supporting bodies. After all, there is a new green and sustainable approach to energy and Atlantis is perfectly suited to deliver this in the Western Cape. But don’t just take our word for it, here are 4 large-scale investors that are already fully operational in the Atlantis Greentech SEZ.
There are also at least 6 more reasons to consider for this fast uptake from investors in the Atlantis Greentech SEZ:
Atlantis provides a prime location with access to thoroughfares.
Features modern infrastructure, including a well-functioning harbour.
There is already a cluster of skilled (green) professionals in Cape Town.
An abundance of natural resources surrounds the city and the region.
Enterprises here have historically experienced low operational costs.
Cape Town offers businesses a good IT infrastructure and support.
Cape Town is the ideal location from which to compete in Africa’s energy markets. The Mother City offers tracts of industrially-zoned land, a strong support base from the government, as well as fruitful business relationships for investors.
“We can imagine a world where Africa is the most prosperous continent, and where we’ve used the green economy to help people thrive, to reduce carbon emissions, and to use resources sustainably.”Bruce Raw, Chief Strategy Officer at GreenCape
Cape Town’s Renewable Industry Drive
Skills development has been prioritised in Cape Town in order to ensure labour meets the needs of the businesses located in and around the metropolis. The city’s youth is also benefitting from training, mentoring and exposure to greentech industries. The Atlantis Greentech SEZ encourages participation in the annual Renewable Energy Challenge and career expo encourages innovation and entrepreneurship. In fact, there is a large pool of unskilled, semi-skilled, technical and professional candidates available here for enterprises. There are even more exciting key indicators to consider too.
To further support investors and businesses in the green technology and renewable energy space, the city of Cape Town has provided a number of bodies to draw on for knowledge and expertise in this regard. Investors have access to extensive investment support through the investor encouragement ecosystem, which includes:
GreenCape: Provides dedicated support and market intelligence to green economy sectors.
Wesgro: The official investment and trade promotion agency for the Western Cape.
SAREBI: A business incubator providing nonfinancial support to green entrepreneurs.
SARETEC: Offers specialised industry-related and accredited training for the wind, and solar industries.
The SEZ also offers a number of incentives for those needing a little extra to get excited about. Investors and tenants are accessing attractive incentives in the form of tax relief and allowances, employment tax incentives, fast-tracked development approvals, fee exemptions and subsidies, including:
Preferential corporate income tax
Employment tax incentives
Value added tax and customs relief
Download Invest Cape Town’s quick guide into exploring the opportunities available in this city’s green economy.
Contact us for more information on Cape Town’s Greentech sector.