INVESTMENTS IN THE GREEN ECONOMY CONTRIBUTED SIGNIFICANTLY TO THE INVESTMENT PIPELINE OF R60BN

INVESTMENTS IN THE GREEN ECONOMY CONTRIBUTED SIGNIFICANTLY TO THE INVESTMENT PIPELINE OF R60BN

By BRIAN KAJENGO

The Investment in the Green Economy contributed significantly to the Department of Trade and Industry’s (the dti) 2013/14 investment pipeline of R60 billion.  The current pipeline for the 2014/15 financial year is at R27bn with a significant contribution from the Green Economy to the value of R10bn.

The Deputy Minister of Trade and Industry, Mr Mzwandile Masina said this during the launch of a multi-million rand manufacturing facility at SMA Solar Technology in Cape Town today.

“This is the third renewable energy component manufacturing facility opening in a short space of time and is testament to the growing importance of the green economy in general and the renewable energy industry in particular. It is also testament to South Africa’s attractiveness as a destination for foreign direct investments,” added Deputy Minister Masina.

According to Deputy Minister Masina, government is committed to creating an enabling environment that will facilitate investment, job creation and growth, and will continue to improve support measures that can help to achieve this.

“the dti provided support in terms of assisting with the reduction of red tape and ensuring that the investor had a seamless investment experience.  Coordination with all levels of government was essential to making this project a success,” added Deputy Minister Masina.

Since the 2012/13 financial year the dti has facilitated investments to the value of R3bn in the manufacturing of equipment and components for the renewable energy industry.  

Deputy Minister Masina also said that the local content requirements for solar energy have progressed from a threshold of 35% in bid window one to a threshold of 45% in bid window four, and a target of 50% and 65% in bid window one and four, respectively.

“The intention is to continue increasing local content levels until optimum levels are reached in order to attract even more investments into local manufacturing,” emphasised Deputy Minister Masina.

The Managing Director of SMA Solar Technology South Africa, Mr Thorsten Range, said that as world market leader with a well-known brand within the solar sector, SMA would strive to achieve a high market share across all segments in Southern Africa; in utility scale, commercial, residential, off-grid and fuel saving applications since it has sophisticated solutions for each of the segments.

Ronge described South Africa as of strategic importance to SMA. He said it has shown economic resilience through the global financial crisis and its energy demands are growing. The need for businesses to contain the risk of power shortages and government’s policy framework toward a low-carbon future, are making photovoltaics a financially attractive investment for independent power producers, commercial, agricultural and infrastructure users.

SMA currently employs 25 people in South Africa, based in Cape Town and Centurion, as well as service hubs in Bloemfontein and Kimberley.

Premier of the Western Cape, Ms Helen Zille and Provincial Minister of Economic Opportunities, Mr Alan Winde also attended the launch.