Atlantis SEZ land transaction unlocks green energy investment opportunities
Yesterday (08 December 2020), the Western Cape cabinet approved key amendments to the founding documents of the Atlantis Special Economic Zone Company (ASEZ Co) which enabled the purchase of land on which the ASEZ Co is located from the City of Cape Town in exchange for minority shareholding in the ASEZ Co.
The proposed purchase by the ASEZ Co of the land from the City of Cape Town is in fulfilment of the SEZ Act 16 of 2014, and is a critical step in the development of the ASEZ Co as it allows the company to attract and engage investors independently over the next three years, with the ability to negotiate terms directly.
Now that cabinet has given its support for the transaction, the ASEZ Co. will issue the City of Cape Town with the Subscription Agreement and both parties will sign the sale agreement. Once the land transfer has been registered, the Western Cape government and the City of Cape Town will conclude the Shareholders’ Agreement and the ASEZ Co will move onto the land.
As the shareholder of the ASEZ, the Western Cape government has worked hard to support the establishment of this greentech, export-orientated manufacturing hub in order to attract investment that leads to increased exports and localisation of green technologies, which will ultimately enable the green economy to create jobs in the Western Cape.
Much progress has been made since the ASEZ Co was officially established as an unscheduled State-Owned Enterprise in December 2019 and there is now a significant pipeline of investments in development with the ASEZ Co seeking to recruit suitable investors to the value of R600 million and enable over 1 000 direct jobs in new energy generation technologies and other green tech investments over the next three years.
Concluding the approval by cabinet, Premier Alan Winde said: "The Western Cape Government has committed to jobs as one of the three key pillars of our provincial recovery. The green economy, and the Atlantis SEZ specifically will attract job-creating investment which will help us achieve this goal. This step is an important one in realising the full potential of this green manufacturing hub for the province."
Minister for Finance and Economic Opportunities, David Maynier, added: “The timing of this could not be more pertinent as the land sale agreement needs to be in place for potential investors who will be bidding for the national gas Independent Power Producer (IPP) programme with investments estimated at R350 – R400 million and who need the land sale agreement in place to break ground in 2021. We remain committed to realising the immense potential of the green economy in the Western Cape through our continued support and promotion of the ASEZ. This is critical to our economic recovery plans in the Western Cape.”
Acting Chief Executive Officer of the Atlantis SEZ Co, Pierre Voges, said: "2020 was used to establish the building blocks to ensure that we have an operational SEZ in 2021. Those building blocks are now in place with this approval by cabinet which we welcome. We look forward to taking the SEZ forward in the next year now that the land has been secured."
Spokesperson for the Provincial Minister of Finance and Economic Opportunities
(Responsible for the Provincial Treasury and the Department of Economic Development and Tourism)
Tel: 021 483 4327
Cell: 071 087 5150