Cape Town is fast becoming a knowledge hub for the green economy.
The designation of the Atlantis Green Technology SEZ, in particular, has made the city even more appealing for investors in the renewables manufacturing industry.
Cape Town accounts for approximately 71% of the Western Cape’s economy and houses most of the large, energy intensive industrial areas. As such, a large number of renewable companies in the region have established head offices in the city to be close to clients.
The region provides businesses and investors with prime locations, modern infrastructure, a skilled workforce, low operational costs and an abundance of natural resources.
The city’s three universities are also actively contributing towards Research & Development in the domain of renewables and the green economy.
The City of Cape Town established a Greentech manufacturing hub in Atlantis in 2011 in response to the government’s focus on localisation of manufacturing as part of the Department of Energy’s Renewable Energy Independent Power Producer Programme (REIPPPP).
The City has made tracts of land available at low cost for purchase or lease by Greentech companies through an accelerated land disposal process. A number of other ﬁnancial and non-ﬁnancial incentives are also on offer, including discounted electricity and rapid turnaround on development applications.
An application has now been submitted by the Western Cape Provincial Government for the Atlantis Industrial area to be declared a Greentech Special Economic Zone (SEZ).
GreenCape’s Atlantis SEZ team, together with the City’s Atlantis Investment Facilitation Office can assist with information, and facilitate access to permits, licenses, planning and development approvals, incentives and ﬁnance.
Foreign direct investment in the renewable energy sector amounted to ZAR7.4 billion between 2008 and 2018. This investment came predominantly through the electricity (42.2%) and sales, marketing and support (40.1%) sub-sectors. The manufacturing sub-sector also observed an FDI inflow of 14.7% of all FDI inflows into the Renewable Energy sector during this period.
Competitive advantages of the Renewable Energy industry in Cape Town
Cape Town forms part of a region which GreenCape deems ‘Africa’s renewable energy and cleantech hub’ with:
- A strong presence of leading renewable energy companies.
- A number of foremost professional services and financiers.
- Notable market opportunities for businesses and investors across the agriculture, energy services, utility scale solar and wind, waste, water, bio-economy and resource efficiency streams.
- An ease of doing business where the green economy is a key priority.
- Five universities with established Research and Development capacity and dedicated streams of study in the realm of the green economy.
- Investment incentives through the proposed Atlantis Greentech SEZ.