Western Cape investment hits R21.8 billion, says Wesgro
Despite a challenging global economic climate, the Western Cape’s investment agency exceeded its annual targets, boosting exports, creating jobs, and expanding into new markets across China, India, and the Middle East.
By Larry Claasen
THE Western Cape has attracted R21,8 billion in investment in the 2025/26 period, with the potential of creating 3,500 jobs over five years, according to Wesgro’s latest annual report.
This is a significant increase from the R14,6 billion the regional economic development agency managed to attract in the previous financial year. The R21,8 billion in investments stemmed from 16 projects spanning a broad range of economic sectors.
Exceeding targets amidst global headwinds
The investment in the region, however, comes at a difficult time for the country and the global economy.
“Conflict in the Middle East set much of the tone for the world economy this year, straining shipping and air routes through the Gulf and the Strait of Hormuz,” noted Wesgro chairperson, Dr Shirley Zinn in the report.
She explained that for energy-importing economies like South Africa’s, such disruptions arrive quickly and close to home. Higher fuel prices feed into the cost of transporting and producing goods, raising the cost of doing business. Food prices follow, inflation takes hold, and in time, the pressure extends to household budgets and the cost of credit.
The effects of this type of disruption are global.
“The International Monetary Fund has already trimmed its projection for global growth in 2026 by 0,2 percentage points to 3,1%. Add shifting trade relationships and intense competition for investment, and the year asked hard questions of every economy, ours included,” she said.
Biovac and green energy lead the charge
Wesgro CEO Wrenelle Stander noted that new investment was facilitated from key global source markets into priority sectors such as the green economy, life sciences and health, logistics, food and beverages, green manufacturing, and services.
Key investments include a R7 billion injection by The Biovac Institute to create an end-to-end multi-vaccine manufacturing site in Cape Town. This will boost its vaccine manufacturing capacity from 150 million to 560 million doses annually and create 450 jobs.
Aside from Biovac, a R7 billion investment by H1 Holdings into the Zen and Bergriver wind farms, which will generate 194MW in power in the Cape Winelands, in partnership with GreenCape, is also a boost to the region’s economy.
These wind farms are majority owned by ACCIONA Energía, the largest 100% renewable energy company, with H1 Capital and Chariot Limited, a London Stock Exchange-listed Africa-focused energy group, owning the 49% balance.
Other notable commitments include a R450 million investment by medical company Inuversal Group, a R317 million investment by Wellington-based Atlantic Fruit Processors, and a R114 million investment by German tech group Intense AG. Wesgro also reported a R5 billion investment in the real estate and infrastructure sector in Cape Town, which will create about 1,500 jobs, though the investing group asked to remain anonymous.
Expanding exports and breaking into new markets
On the trade front, Wesgro secured 51 export declarations worth R3,7 billion, supporting 1,837 potential direct jobs. Its engagements reached 48 countries through 81 outward missions and 53 inward delegations.
This helped grow the province’s export markets, opening new ground in China, the Association of Southeast Asian Nations (ASEAN), India, Brazil, and the Middle East, while maintaining existing markets in the EU, UK, US, and Africa. These efforts saw Wesgro substantially exceed its trade target of R1,6 billion.
However, this was the first year of reporting against the specific indicator of the number of companies providing an export declaration. While it set a target of 68 companies, it only managed to sign up 51, resulting in a shortfall of 17.
“Though fewer companies submitted export declarations than anticipated, the declarations secured were of higher value and still delivered strong economic impact,” the report noted, adding that targets have been updated in outer years to better reflect actual performance trends while continuing to broaden the exporter base.
The road to a R30 billion goal
Zinn pointed out that the Western Cape managed to attract investment and grow exports in a difficult global environment.
“Institutions earn their keep in conditions like these. Much was decided far beyond our borders this year, but a province is never powerless. It can make itself easy to invest in, keep its exporters close to their buyers, and present itself credibly to the world,” she said.
The overall goal is to attract R30 billion new investment with a focus on targeted areas and markets, resulting in 15,490 jobs in a five year period between 2025/26 to 2029/30.
Wesgrow exceeded its annual outcome target of attracting and facilitating R5,5 billion and creating 2,960 jobs for the 2025/26 period, against the R21,8 billion it attracted, and the 3,566 jobs created.
