LATEST NEWS
Be part of a dynamic economy
15 July 2018
CAPE TOWN – A HUB FOR INNOVATION ON THE AFRICAN CONTINENT
Home to the African Headquarters of major multinationals such as Amazon, Kimberly-Clark and DHL, as well as homegrown global titans such as Naspers and Woolworths, Cape Town continues to strengthen its position as a top location for business on the African continent.
Boasting world-class infrastructure, sound governance, a sound skills base (four top African universities are located within 45km of the City) and an exceptional quality of life – the province has an undeniable competitive edge.
Wesgro’s Investment Promotion (IP) Unit is tasked with attracting and facilitating foreign and domestic direct investment into Cape Town and the Western Cape.
The unit’s role is to act as a central facilitation point for potential investors – providing guidance in terms of the local business ecosystem, access to key stakeholders and expertise in local business operations.
The IP Unit attracts direct investment into the region by actively positioning Wesgro as the ‘first port of call’, assisting with cutting through red tape by working closely with InvestSA One Stop Shop, an infrastructure hub funded by the Department of Trade and Industry in conjunction with support from multiple governmental entities, operated by Wesgro.
Elaborating on exciting spaces to watch with regard to investment opportunities,
James Milne, Head of Investment Promotion, said: “The Cape is becoming an innovation hub for the continent with leading tech and eco-friendly/green companies operating out of the province. Two key sectors to keep an eye on in the upcoming year are the local tech and green economy ecosystems.”
Cape Town is fast emerging as a leading start-up hub on the African continent as start-ups from across the globe choose Cape Town as a base for various reasons, including: lifestyle, community, access to funding, a culture of creativity, and available talent.
“Globally, companies are increasingly leveraging decentralised structures that focus on ensuring key components of their business models are located in a region or geography that enables them to excel in specific objectives,” added Milne. “Cape Town offers companies the opportunity to build a back office support structure at a far lower-cost than the majority of developed countries, yet at a comparative level of quality.”
Another exciting field for potential investors is the local Green Economy. According to a Moody’s Investors Service report released towards the end of last year, Cape Town’s flourishing renewable energy market has seen the highest year-on-year growth globally.
Christopher Bredholt, Moody’s vice-president, senior analyst and the report’s author, said: “The South African renewable energy market has grown rapidly over the last five years or so, and there is rising demand for renewables debt.”
The Atlantis GreenTech Special Economic Zone (SEZ) presents a particular opportunity in this regard. The SEZ will focus on attracting investments in clean technologies, electronics, solar and wind energy technologies, energy efficient technologies, alternative waste management, alternative building materials, and technologies, among others.
With the progress made on the REIPPPP and the Small Scale Embedded generation market estimated to be worth R7.5 billion by 2035, significant opportunity exists for solar panel manufacturing activities and related spin-off industries in the soon to be designated Atlantis SEZ. In addition, there is a need for thermal treatment technologies for dirty mixed plastics, refuse derived fuels (RDF) and thermoform PET.
With investments into the Green Economy space supported by Wesgro and Green Cape amounting to more than R2.5 billion (USD 198 million) in the 2017/18 year alone, considerable future investment opportunities are expected to arise over the course of the next 5 years.
In a final comment, Wesgro CEO, Tim Harris, said: “Our province’s competitive offering coupled with world class expertise offers an array of different opportunities for potential local and international investors. Cape Town and the Western Cape is open for business and we welcome you to make the most of what our city and province has to offer.”
