The City of Cape Town established a greentech manufacturing hub in Atlantis in 2011, in response to the Department of Energy’s Renewable Energy Independent Power Producer Programme (REIPPP). Localisation of manufacturing and the resultant job creation is one of they key priorities of government through the REIPP programme. The hub has already attracted its first large Greentech investor, Gestamp Renewable Industries (GRI). A wind tower manufacturer, GRI has already invested The Atlantis Special Economic Zone R300m and is in full-scale production.
OVERVIEW
the proposed Atlantis SEZ (ASEZ) capitalises on the province’s already booming renewable energy and green technology sector. Greentech refers to green technologies that reduce or reverse the impact of people on the planet. This includes renewable energy technologies. Wind turbines, solar panels, insulation, biofuels, electric vehicles, materials recycling and green building materials are all examples of green technology.
Manufacturing
is poised for growth.
SECTOR INSIGHT Gr e en C ap e has w on international recognition.
Siemens wind towers manufactured at Gestamp Renewable Industries in Atlantis.
- Siemens wind towers manufactured at Gestamp Renewable Industries in Atlantis -
T
he Atlantis Special Economic Zone, which is due to be officially certified soon, has already attracted nearly R700-million in private-sector investment. A Moody’s report on the green economy in Africa states that South Africa has the fastest-growing green sector in Africa, and one of the fastest-growing in the world. The Western Cape is driving a green economy manufacturing strategy focussed on Atlantis. About 70% of South Africa’s manufacturing in renewables is happening in the Western Cape. Atlantis was chosen in 2017 as the site of a new factory for Czech fabric manufacturer PEGAS Nonwovens. At R1.3-billion, the investment is the biggest secured by Wesgro and Into SA since 2011. Training for local residents employed by the manufacturer will take place in the Czech Republic. Fridge manufacturer Hisense, already established at Atlantis, is exploring ways to make its product greener, either through its own processes or via its suppliers. The 500 employees at the Atlantis factory produce fridges and televisions that are exported to 13 African countries. Green Cape is an agency that does research and runs projects in areas such as energy efficiency, waste, water and sustainable agriculture. It is a joint initiative of the City of Cape Town, Wesgro and the Provincial Government of the Western Cape. The Western Cape Industrial Symbiosis Programme (WISP), which encouraged WESTERN CAPE BUSINESS 2019
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manufacturers to use the waste products of other businesses, won international recognition in 2018 when it was runner-up in the Circular Awards at Davos. Growth in the Western Cape manufacturing sector between 2003 and 2013 averaged 2.2% and the Provincial Economic Review and Outlook predicts the same level of growth to 2020. A diverse manufacturing sector contributes 15% to the Western Cape’s GDP. The agri-processing sector (including food and beverages and tobacco) is the largest emp l oyer (24%) fo ll owe d by metals, metal products, machinery and equipment at 19%. A proposed Cape Health Technology Park will further boost the growth of the manufacture of medical devices. The decision by Britain to leave the European Union has led to increased interest in bilateral trading relations with individual European countries. France has established a tech hub in Cape Town and Business France has been facilitating a number of conferences and visits. More than 300 French firms currently operate in South Africa.
