IPAP IDENTIFIED GREEN ECONOMY FOR JOB CREATION AND ECONOMIC GROWTH

IPAP IDENTIFIED GREEN ECONOMY FOR JOB CREATION AND ECONOMIC GROWTH

The Industrial Policy Action Plan (IPAP), has identified Green Economy as a key focus area and it provides significant opportunities for job creation and economic growth.

The Minister of Trade and Industry, Dr Rob Davies said this. He was speaking at the launch of about R300-million Gestamp Renewable Industries (GRI) wind tower manufacturing plant in Atlantis in the Western Cape.

He said the opening of the facility is part of government’s drive to expand the capabilities of the country’s manufacturing industry and to increase the industrial base. 

Minister Davies said that Trade and Investment South Africa (TISA), a division of the dti has facilitated investments to the value of R3 billion in the manufacturing of equipment and components for the renewable energy industry since 2013/2013 Financial Year.

“Investment in the Green Economy therefore contributed significantly to TISA’s 2013/14 investment pipeline of R60bn. The current pipeline for the 2014/15 financial year is at R27bn with a significant contribution from the Green Economy (R10bn),” said Davies.

Gestamp Renewable Industries (GRI) benefitted from government’s 12I Tax Allowance Incentive (12I TAI). In terms of the 12I TAI the company got R80-million and allocated towards investment allowance of R300-million and almost R6-million towards skills development and training of employees.

Davies stated that the importance of Green Economy further supported by various international accolades, recognising the South African Government’s procurement of utility scale renewable energy projects through the Renewable Energy Independent Power Producer Programme (REIPPP).

“In the Climatscope 2014 report released by Bloomberg New Energy Finance, South Africa was ranked third, after China and Brasil, for investment in clean energy, accounting for more than 90% of these investments in Sub-Saharan Africa. Also, in 2013, South Africa’s REIPPP won the Green Infrastructure project of the Year at the 6th Global Infrastructure Leadership Conference in New York,” he indicated.

The Gestamp Renewable Industries (GRI) wind tower manufacturing plant will create more than 200 for mainly residents of Atlantis and the surrounding area.

With this specific investment/project, department of Trade and Industry worked closely with Green Cape, an agency of the City of Cape Town and the Western Cape Provincial Government to provide a seamless investment experience to GRI and other investors.

To further support investment into the Green Economy, the dti’s Trade and Investment South Africa and Green Cape signed a Memorandum of Understanding to cement the good working relationship between local, provincial and national government.