South Africa: Wesgro has launched its Green Economy Sector Report, highlighting the strategic efforts of Cape Town and the Western Cape to strengthen their position as leading destinations for green industrial growth amid accelerating global investment in the energy transition.
These regions combine established renewable energy manufacturing capabilities, purpose-built investment zones, globally competitive natural resources, modern logistics infrastructure and a deep pipeline of technical talent. It created the conditions that needed to support large-scale green investment.
Cape Town and the Western Cape continued to build a compelling, investment-ready platform for the green economy. These are highly supported by stable governance and strong public-private collaboration.
Green Economy Sector Report by Wesgro outlines the scale of the green economy opportunity and the investment cycle underway at global level, across Africa, South Africa and in the Western Cape. It is intended to provide businesses and investors with a clear sense of, where opportunities are emerging, how large they are, and why the Western Cape is well-positioned to capture them.
The global economy is undergoing a significant shift towards low-carbon, resource-efficient growth, which has triggered one of the largest investment cycles of the 21st century. By the first quarter of 2025, the global green economy accounted for approximately 8.6% of listed equities, with a market capitalisation of US$7.9 trillion, having grown at a compound annual growth rate (CAGR) of 15% over the past decade.
Earlier in 2024, renewable energy installations reached another record, with 585 gigawatts (GW) added globally, while investment in the energy transition totalled US$2.4 trillion. In Africa, this transition is accelerating from a low starting point. Increasing electricity demand, water scarcity, rapid urbanisation and pressures on food systems are driving investments in renewable energy, water infrastructure, circular systems, electric mobility and sustainable agriculture.
The continent will require substantial investment in green infrastructure, including at least US$30 billion more, per year for water, over US$60 billion in green hydrogen by 2035 and a doubling of power capacity by 2050. South Africa is at the forefront of this continental shift. Installed capacity is currently 7.7GW, with an expected 32GW by 2030.
It further faces systemic challenges such as energy insecurity, water shortages, landfill saturation, drought exposure and climate risks that are driving the rapid adoption of clean energy solutions, circularity, water reuse and climate-smart agriculture. The country needs to increase climate finance flows from US$7.15 billion per year to US$18.37 billion per year to fulfil its climate commitments by 2030, while ensuring economic growth.
Within this national context, the Western Cape has emerged as South Africa’s leading hub for the green economy. The province boasts excellent natural resources, advanced logistics, stable governance, robust institutions and a mature ecosystem of financiers, developers, innovators and specialised service providers. The province is now a preferred as destination for green-economy investments across renewable energy, water, green hydrogen, electric mobility, the circular economy and sustainable agriculture.
The report also provides a high-level outlook on the global green economy and positions the Western Cape within this evolving landscape. It moves from global trends to key thematic segments: renewable energy, water, green hydrogen, electric mobility, the circular economy and sustainable agriculture. It highlights the current and projected scale of each segment and the implications for future investment. The macro framing underlines the more detailed and sector-specific analysis.