Evan Rice CEO

GreenCape

South Africa

Towards a GreenTech SEZ in Atlantis: Manufacturing opportunities for

development of local capacity

GreenCape

• A non-for-profit sector development agency

that supports businesses operating within

the green economy in the Western Cape

• Established in 2010 by the Western Cape

Government & City of Cape Town to support

the development of the renewable energy

sector

Vision

The Western Cape is the green economy hub

for Sub-Saharan Africa – the regional

headquarters and manufacturing centre for

leading companies in this space

Western Cape is already SA’s emerging renewable energy hub

60% of successful REIPPPP projects developed by Cape-based

developers

Major foreign manufacturing investments in wind,

solar PV and inverters

SARETEC providing local skills for the industry

Atlantis greentech hub established – incentives for

local manufacturing and services

R8 bn investment in the Western Cape since 2011

>2500 new direct jobs created

Local manufacturing is a key drive as part of SA’s renewable energy rollout

Job creation, local content are key for South Africa

Local content requirements have been increasing from round to round of the REIPPPP

dti has completed Wind and PV localisation strategies

Several manufacturers already established facilities (wind turbine towers, PV modules, inverters)

A number of additional opportunities have been identified – blades, nacelles, PV cells

Primary objectives

To grow the green technology sector in the Western Cape and South Africa

Help establish Cape Town as the African investment destination of choice for green economy manufacturing

To promote the revitalisation of Atlantis as a key industrial node in the region

6

Source: GreenCape (2014) Atlantis Greentech Industrial Park; Google Maps

Atlantis was identified as a potential GreenTech manufacturing hub

2 greenfield sites (68ha)

Accelerated land disposal (EIA complete)

City incentives including lower electricity price and waived development fees

‘Greentech’ – broadly defined as low carbon and/or resource efficient 7

Towards an Atlantis GreenTech manufacturing hub

1st anchor investor is GRI – wind turbine towers

Towards an Atlantis GreenTech Special Economic Zone

GreenCape is the project management office on

behalf of the Department of Trade & Industry (dti),

Western Cape Government and City of Cape Town

for the application for designation of a GreenTech

SEZ in Atlantis.

SA’s plans for SEZs

South Africa’s Industrial Policy Action Plan (IPAP) includes SEZs to encourage industrial development

10 planned sector focused SEZs based on regional advantages - agri-processing, minerals beneficiation, logistics, etc.

2 of the proposed SEZs focus on renewables:

Atlantis (GreenTech)

Northern Cape (solar, especially CSP)

SEZ overview

A geographically designated area set aside for specifically

targeted economic activities, supported through special

arrangements (that may include laws) and systems that

are often different from those that apply in the rest of the

country:

‐ 15% Company tax

‐ Building allowance

‐ 12i tax incentive

‐ Employment incentive

‐ Customs controlled area

12

Strong eco-system for success of the SEZ

Support already in Atlantis

Key considerations: - Energy - Investment - Skills - Co-ordination

TiSA AIFO ASEZ PMO

SEDA SAREBI Aii GreenCape

Where are we now

Feasibility studies complete

Application in process of being drafted

dti has published the draft rules and regulations –

comment period closed

Once rules and regs are finalised, application will be

submitted

Companies wishing to invest before then can get letter

from dti ensuring they will not be excluded from benefits

after designation

For more information please contact us:

www.greencape.co.za

021 811 0250

info@greencape.co.za