Spanish investments in South Africa grew to €6-billion in 2014, from €2.2-billion in 2010, with 4% of South Africa’s imported goods coming from Spain, embassy of Spain trade commissioner Enrique Manzanares tells Engineering News.

Spanish companies have also made significant investments in South Africa’s renewable-energy sector, with about 20 Spanish-owned renewable-energy projects currently under construction in the Northern Cape.

Spain turned a bilateral trade deficit in 2010 into a surplus of almost €520-million in 2014, with import and export coverage of 150%.

“Spanish investments in South Africa have tripled, with a stock value of €6 000-million in 2014. Spain is in fifth position among investing countries in South Africa, and third in the European Union, after Great Britain and Germany,” Manzanares says.

He cites participation of Spanish professionals in South African markets having increased five times from 2010 to 2014, adding that there is a high concentration of Spanish nationals working on renewable projects in the Northern Cape, where half of the 4 000 Spanish workers in South Africa currently reside.

“In April 2013, the Spanish Chamber of Commerce in South Africa was created. It consists of 60 members and was recognised as an official Spanish overseas chamber of commerce by the Spanish Ministry of Economy in September 2014.”

Meanwhile, Manzanares lauds the success of the country’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP): “It has achieved fantastic goals in its four years of existence and more than
5 000 MW has been awarded since its inception in 2011.”

He adds that the cost of bids for registered REIPPPP projects has decreased by 45% since the first round and that local-content requirements have increased, on average, from 25% in the first round to 50% in the fourth round.

Spanish and South African companies have created 17 500 direct jobs in the renewable-energy sector during this time, Manzanares points out.

“Spanish companies are obtaining about one-third of the REIPPPP contracts, which has been an important factor in driving the growth of bilateral relations between the two countries.”

He notes that a bilateral technological cooperation programme, South Africa & Spain Innovation (Sasi), is being developed by the Spanish Centre for Industrial Technology Development and the South African Technology Innovation Agency to promote technological cooperation between South African and Spanish entities.

“The recent signing of the publicly funded intergovernmental network Eureka programme in South Africa has allowed for the implementation of Sasi to be accelerated,” Manzanares adds.
The Eureka programme aims to enhance European competitiveness by fostering innovation-driven entrepreneurship in Europe between small and large indus- tries, research institutes and universities.