Africa’s new investment frontier

Ambition and opportunity meet in the Northern Cape, where vast renewable capacity and abundant resources are fuelling growth.

South Africa’s Northern Cape is a land of untapped potential. Its vast landscape and sparsely populated areas with open deserts, untouched wilderness and endless skies create ideal conditions for renewable power in a region already blessed with significant mineral resources—a combination that is making it the nation’s new growth frontier.

With more than 60% of the country’s existing renewable capacity, the province is now positioning itself at the forefront of the global energy transition. “Our goal is to build a modern, growing and successful province,” says Northern Cape Premier Dr Zamani Saul.

Major global players have responded, with a series of key projects operational or in development. In Kenhardt, Norwegian renewables leader Scatec has built one of the world’s largest hybrid solar and battery facilities, an R18-billion project with 540 MW of generation capacity and 225 MW of battery storage. For France’s EDF Renewables, the Northern Cape will host part of its innovative virtual power plant, a hybrid installation combining wind, solar and battery systems across sites more than 900 km apart.

Meanwhile, Chinese engineering giant PowerChina, in partnership with SolarAfrica Energy, is constructing South Africa’s largest single-unit solar facility in the Northern Cape, while UAE’s Masdar already operates three wind projects of 140 MW each in the province. “The Northern Cape is blessed with some of the most favourable conditions for renewable energy projects in the country, if not the world,” says Lorato Venus Blennies-Magage, Member of the Executive Council for Finance, Economic Development and Tourism.

OUR GOAL IS TO BUILD A MODERN, GROWING AND SUCCESSFUL PROVINCE.

Dr. Zamani Saul, Premier of the Northern Cape

But ambitions go beyond generation. The province’s Green Hydrogen Strategy and Master Plan aims to leverage the region’s renewables base to power electrolysers and produce hydrogen for industrial uses and overseas markets—positioning the Northern Cape as a green hydrogen gateway and hub for exports. The flagship is the Boegoebaai Green Hydrogen Project. Supported by a deepwater port and accompanying special economic zone (SEZ), the facility is expected to generate 5 GW of power in its first phase alone, alongside up to 13,000 jobs, according to the investment promotion agency NCEDA. Long-term, the project could be scaled up to generate as much as 40 GW, and ship hydrogen, ammonia and fertiliser to markets in Europe and Asia, while also becoming a hub for low-carbon manufacturing. 

Government support has been decisive. In addition to Boegoebaai, the province’s broader industrial roadmap includes the newly designated Namakwa SEZ in Aggeneys, supported by the Kathu and Upington Industrial Parks. “The Namakwa SEZ will strategically position the Northern Cape as a new growth point for the country,” Saul says. Underpinning this support is a determination to foster inclusive growth, ensuring the benefits of this transformative strategy are far reaching—and shared equally. “We are ensuring that no community is left behind,” he adds.

THE NAMAKWA SEZ WILL STRATEGICALLY POSITION THE NORTHERN CAPE AS A NEW GROWTH POINT.

Dr. Zamani Saul, Premier of the Northern Cape

That means the same emphasis applies to transformation in the region’s traditional powerhouse industries, mining and agriculture, which account for around 25% of provincial GDP—with value creation now top of the agenda. “Too often, raw materials leave the province only to return as expensive finished goods,” says Blennies-Magage. “We are turning that tide and ensuring that jobs and economic returns stay within our communities.”

The Northern Cape has extensive reserves of iron ore, manganese, diamonds, copper and rare earths. Supported by mining giants including Anglo American and South32, NCEDA and the provincial government are backing the development of the Northern Cape Metals Industrial Cluster as a hub for smelting, fabrication and alloy production, part of a drive to grow the region’s beneficiation and processing infrastructure. This is mirrored by private-sector beneficiation initiatives at Sishen and Kolomela, two of the world’s most productive iron ore mines.

THE NORTHERN CAPE IS BLESSED WITH SOME OF THE MOST FAVOURABLE CONDITIONS FOR RENEWABLE ENERGY PROJECTS IN THE COUNTRY.

Lorato Venus Blennies-Magage, Member of the Executive Council (MEC) for Finance, Economic Development and Tourism, Northern Cape Province

In agriculture, meanwhile, high-value crops including grapes, fruits and nuts are grown in established corridors, particularly along the Orange River. This is augmented by the Vaalharts Irrigation Scheme, one of the largest such projects in the world. Covering more than 30,000 hectares, it has enabled the growth of cotton, wheat, maize and more in an area that was previously semi-desert.

International partnerships are another cornerstone of the strategy. Northern Cape leaders have held investment talks with partners from the UAE, Europe and Asia focusing on infrastructure funding, technology transfer and access to export markets, laying the foundation for long-term growth. “Our strategic objective is to position the Northern Cape as a regional and global hub for energy, mining, agriculture and manufacturing,” says Blennies-Magage. “We have what it takes to diversify and future-proof our economy.”

This article was published in partnership with Gulf News for the Philippines 2025 Report.
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