renewable energy hero
Establish in Africa’s Green Economy hub
The Western Cape is fast becoming the manufacturing and knowledge hub for the green economy.
The designation of the Atlantis Green Technology SEZ, in particular has made the region even more appealing for investors in the renewables manufacturinndustry. Financial and regulatory incentives are available upon locating renewable energy related businesses in the park including:
- Reduced corporate income tax rate: Qualifying companies will receive a reduced corporate tax of 15%, instead of the current 28% headline rate.
- Employment Tax Incentive (ETI): Aimed at encouraging employers to hire young and less-experienced work seekers, the ETI will reduce the cost to employers of hiring young people through a cost sharing mechanism with government.
- Building allowance: Qualifying companies will be eligible for an accelerated depreciation allowance on capital structures (buildings). This rate will equal 10% per annum over 10 years.
- VAT and customs relief: Companies located within a customs-controlled area (CCA) will be eligible for VAT and customs relief in line with the relevant legislation (dti, 2015c).
- Other incentives available to investments into a designated SEZ will include:
- 12I Tax Allowance Incentive (12I TAI)
- One-stop shop facility within designated SEZ area
- SEZ fund for infrastructure development within the designated area.
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.
The West Coast’s environmental conditions provide a perfect platform for investment in renewable energy solutions. The vast open spaces and ideal location alongside the windy Atlantic Ocean shoreline offer the largest potential for wind generated energy within the province. It is estimated that a total of 2,800 MW of energy could be generated with the average wind speed of 6m/s.
The Western Cape alone from 2014-2017 realised around R500 million in investments into component manufacturing. This total excludes spend on local services such as logistics, civil and electrical works for projects based within the province and nationally.
Competitive advantages of the Renewable Energy industry in the Western Cape
- 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 Atlantis Greentech SEZ.
For more information about opportunities in Cape Town’s Green Economy, visit GreenCape or email email@example.com.