Building on an already substantial investment base, continued cooperation between local, provincial and national government could see an additional R1 billion in direct investment pumped into Atlantis over the next five years.  

In 2013, GreenCape and the Department of Trade and Industry (dti) signed a Memorandum of Funding Agreement to set up a project management unit to facilitate the establishment of a green technology Special Economic Zone (SEZ) in Atlantis.

The proposed GreenTech SEZ supports the manufacturing sector to become suppliers and component manufacturers for clean technology, such as renewable energy components.

South Africa aims to generate 17 800MW of electricity from renewable resources by 2030.  A significant share of the new electricity capacity is being developed and produced by Independent Power Producers (IPPs) through the government’s Renewable Energy Independent Power Producers Programme (REIPPP).

The proposed SEZ has a particular focus on tapping into the attractive local content opportunities created through this programme.

“The Western Cape is fast becoming a preferred destination for renewable energy and technology businesses and their investors,” says GreenCape CEO, Mike Mulcahy.

“At least twelve new industrial manufacturing facilities, capable of supplying utility scale projects, have been established in the country in direct response to the REIPPPP, with the establishment of two more large manufacturing concerns in the pipeline. Of these, eight are in the Western Cape.”

 

Major investment

GreenCape has reported investments in Atlantis totalling R680 million over the past three years and says a further R1 billion worth of new direct investments has been forecast for the next five years.

“The natural location advantages of Atlantis are being realised, the availability of large greenfield sites and an excellent transport network makes it the ideal location for the fabrication of large components like wind towers and blades.

“The success of this initiative is a true reflection of what can happen when all three levels of government pull together.  Looking past the successes of the past financial year we believe a further R1 billion investment over the next five years is not only achievable, but a conservative estimate,” says Mulcahy.

Judging by the investments already attracted through relatively little investment by the Department of Trade and Industry the collective benefits of the focussed work being conducted by national and local governments into industrial development, such as the Atlantis SEZ, is already bearing fruit.

“The investment future is bright. Infrastructure like the MyCiti bus, Fibre optic cable, road upgrades and electricity upgrades combined with good governance, readily available skills, attractive financial incentives and energy security make for a powerful convergence of opportunities.

“These factors, added to the clear cooperation and alignment across the three layers of government, and the fact that the project is an extremely efficient government spend to create jobs and economic value and already showing notable results, create a compelling investment opportunity in GreenTech,” Mulcahy concludes.