The Saldanha Bay Industrial Development Zone, or Freeport Saldanha, has announced an agreement to establish Southern Africa’s first alginate production plant.

A company called Alkelp will develop the plant, having secured an initial investment amount of more than R50-million.

Alkelp undertook a comprehensive two-year front-end engineering design study together with a Cape Town-based deep-tech company called SKEG, to assess the commercial potential of producing alginate from local seaweed. 

In turn, Abacus Group will provide project management oversight through its Cape Town office.

The plant is expected to start operating in November, comprising a primary alginate production plant and a biorefinery for producing derivative products.

Kelp feedstock will be sourced from licensed South African suppliers that guarantee no harm to marine reserves.

Freeport Saldanha expects the project to generate job opportunities in marine communities across the Western and Northern Cape provinces, many of which have been economically impacted by the decline of traditional industries.

“With a growing global market for alginate products, this initiative positions South Africa’s to move up the value chain beyond current uses in fertilisers, biostimulants and abalone feed,” says Alkelp project lead Philani Mzimela.

He adds that the alginate plant marks a unique opportunity to leverage new technologies and create a leading global supplier of alginate.

Freeport Saldanha interim CEO Xola Sithole says the investment aligns with the special economic zone’s mission to attract high-value industries and foster inclusive economic development. “The project strengthens Freeport Saldanha’s position as a premier industrial hub and showcases investor confidence in our region.”

Western Cape agriculture, economic development and tourism minister Dr Ivan Meyer describes the establishment of Southern Africa’s first alginate production facility as a milestone for industrial innovation in the Western Cape.

For him, the investment also reflects the Western Cape’s commitment to unlocking economic opportunities in coastal communities and advancing the province’s position in global bioeconomy markets.