Official designation for Atlantis Special Economic Zone | Fin24
 
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Official designation for Atlantis Special Economic Zone

Jun 11 2018 18:11

Cabinet has given the go ahead for the designation of the Atlantis Special Economic Zone (SEZ).

The 124.5 hectare area is designated for the manufacture of green technologies and related services including wind and solar power technologies, alternative waste management, energy efficient technology, alternative building materials and many other clean technologies.

Minister of Trade and Industry Rob Davies confirmed the designation of the SEZ, and the approval of cabinet, in writing to Western Cape Minister of Economic Opportunities Alan Winde this weekend.

An SEZ clusters industries from a particular sector closely together, to reap the benefits of scale and co-location. The designation as an SEZ by the government, allows for certain incentives to be offered to attract investment.

In 2011, the City of Cape Town established a manufacturing hub for green technologies in Atlantis, which attracted large investors even before the designation was official. Five of these investors are already operational.

The Western Cape government later submitted an application for portions of City owned land in Atlantis to be declared a GreenTech SEZ. This would allow companies to qualify for a range of Department of Trade and Industry incentives, including a 15% company tax rate.  

A combined R1.8bn is expected to be invested in the SEZ by 2022, with the creation of 1 200 direct jobs. A total of 24 000 full time equivalent jobs are expected to be created in the SEZ’s 20-year lifespan.

Davies has given the go-ahead for the SEZ on the condition that the Atlantis community is given priority in terms of job creation, and opportunities for SMMEs.

This will allow the people of Atlantis to become involved in economic opportunities right on their doorsteps, and play an integral part in growing their economy, according to Winde.

“The national incentives that now come with an SEZ designation will provide a major boost to our efforts at regenerating what was once a declining industrial part of Cape Town and create even more much needed jobs for the residents of Atlantis and surrounding areas," said City of Cape Town Executive Mayor Patricia de Lille.

"I am also enormously encouraged by how all three spheres of government collaborated to make this SEZ a reality. It shows that progress is possible when we work together.”

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dti  |  alan winde  |  rob davies  |  atlantis  |  industrial  |  renewable energy
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