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Cape Town

South Africa

Cape Town, the second largest city in South Africa, is located at the southern tip of Africa.

Nestled between the ocean and the mountain, with a national park at its heart, it is a city of incredible natural beauty.

For its 3.8 million citizens it is a great place to live, work and play. There is a host of important supporting infrastructure including four universities, a growing integrated transport system, broadband infrastructure, an award winning international airport, the country’s second largest port and world-class hospitals and medical facilities.

Cape Town is an open economy that embraces trade and investment with the rest of the world.

The city’s economy is the second largest municipal economy in South Africa, contributing 11.3% to national gross domestic product in 2013. This translates into approximately US$ 34.1bn per annum.

The industries in which Cape Town has the most pronounced comparative advantage compared to the country as a whole are fishing, clothing and textiles, wood product manufacturing, electronics, furniture, hospitality, finance and business services.

Cape Town is the newest member of the World Energy Cities Partnership. Within Southern Africa there are significant opportunities across the oil and gas value chain as the industry develops towards its full potential. Cape Town and the broader city region are well positioned to capitalise on these opportunities.

According to the South African Oil and Gas Alliance, “ due to the established midstream and downstream activities in South Africa as a result of the mature downstream industry, South Africa [has] developed as a key location for many local, regional and multinational oil and gas companies active in the value chain.”

Successful exploration in Sub-Saharan Africa has resulted in increased activity in oil and gas in the region, and South Africa is well placed to serve as a permanent hub providing services and expertise for oil and gas in Africa.

The national government’s Operation Phakisa and the Western Cape Government’s Project Khulisa are both significant commitments by government to develop the oil and gas sector in South Africa over the coming years.

Cape Town takes a holistic approach to energy. The City has made institutional and strategy changes to address vulnerability to threats like poor energy security and climate change impacts, and to reduce it its carbon footprint currently standing at 5,6tCO2e/capita.

The City periodically produces a ‘Cape Town State of Energy Report’, the most recent being in 2015, and has recently completed its Energy2040 strategy, which models a more resilient, lower carbon, resource efficient and equitable future for Cape Town which significantly reduces its exposure to external threats.

Among other things, the City of Cape Town and the Western Cape Government are collaborating on an Energy Game Changer programme to drive energy efficiency and a rapid diversification of the energy supply mix. Renewable and cleaner supply is a key component of this initiative.