How We’re Building Cape Town’s Economy

 

Opinion Piece by James Vos, Mayoral Committee Member for Economic Growth 

 

People often ask me what the Economic Growth Directorate actually does. It’s a fair question because the name doesn’t immediately explain what we do.

 

The simple answer is this: we create the conditions for businesses to grow. Government doesn’t create most jobs. Businesses do. Entrepreneurs do. Investors do. Our role is to make Cape Town the easiest place to do business so that companies have the confidence to invest, expand and employ more people.

 

That’s how I look at our R868 million budget for the Economic Growth Directorate, which has just been approved for the 2026/27 financial year. It funds the practical programmes, initiatives and partnerships that drive investment, support businesses, create opportunities and help grow Cape Town’s economy.

 

I don’t see this budget as a figure on a page. I ask what it will unlock. Will it help another business grow? Attract another investor? Create another job? That’s how I measure success.

 

Cape Town has the lowest unemployment rate of any metro in South Africa, which is encouraging. But none of us should be satisfied while people are still looking for work. Every decision we make has to be about creating more opportunities and shortening the unemployment queue.

 

One thing this job has taught me is that you can’t understand the economy from behind a desk. That’s why I’m constantly out meeting businesses, walking factory floors, visiting industrial areas and speaking to entrepreneurs. Whether I’m in Atlantis, Epping, Khayelitsha or the CBD, I hear much the same thing. Businesses aren’t asking government to do everything. They want a partner that listens, responds quickly and removes unnecessary obstacles. That’s been my approach from day one.

 

A big focus for me has been improving Cape Town’s international connectivity.

 

People joke that I spend a lot of time talking to airlines, and they’re absolutely right. Every new route creates opportunities across the economy. It brings more visitors, helps exporters reach new markets, attracts investors and supports thousands of jobs.

 

Today Cape Town welcomes around 230 international flights every week. That’s a strong foundation, but I don’t see it as the finish line. I think there are still more opportunities to grow our connectivity.

 

Over the past year I’ve travelled to Brazil, New York, Istanbul, China and India. Those weren’t courtesy visits. They were about attracting investment, strengthening trade and opening doors for Cape Town businesses.

 

Wherever I travel, I ask the same question: how do we get more investment into Cape Town and more Cape Town products into international markets? We produce world-class food, wine, clothing, technology and manufactured goods. If we can help local businesses export more, they’ll grow, create jobs and strengthen our economy.

 

Tourism is a great example of why that work matters.

 

Today tourism supports almost 106,000 jobs and contributes around R24.5 billion to Cape Town’s economy. Behind those numbers are hotel staff, chefs, tour guides, shuttle drivers, guesthouse owners and thousands of small businesses whose livelihoods depend on visitors choosing Cape Town.

 

Last year we launched the This is Cape Town campaign across six continents and 55 cities to position Cape Town more strongly in key international markets. That wasn’t a once-off campaign. It forms part of a much bigger strategy to grow tourism because more visitors ultimately mean more jobs.

 

I’m also looking forward to launching our new Tourism Framework. The goal is simple: attract more visitors, encourage them to stay longer, spread tourism into more communities and create more opportunities for local businesses and entrepreneurs.

 

Tourism is only one part of the story.

 

Another major priority is supporting businesses because they’re the engine of job creation. Through our Business Hub we’ve helped thousands of businesses with training, mentorship, procurement opportunities and practical advice.

 

I enjoy visiting these businesses because every one has its own story. Some are just starting out, while others are looking to expand or enter export markets. If we can remove some of the barriers they face, they’re far more likely to employ more people.

 

I’m also a big believer in partnerships.

 

Government doesn’t always have all the answers, so we’ve invested in industry organisations that understand their sectors. They work in areas like business process outsourcing, technology, manufacturing, clothing and textiles, marine manufacturing and green energy.

 

Those partnerships helped facilitate more than R15 billion in investment into Cape Town last year. That’s not just a headline number. It represents businesses choosing Cape Town, companies expanding and more confidence in our economy.

 

The business process outsourcing sector is a great example. Last year it created a record 11,496 new jobs, bringing total employment to more than 100,000 people. Those jobs came from years of building partnerships, investing in skills and promoting Cape Town internationally.

 

Manufacturing is another sector I’m passionate about because every factory I visit reminds me that manufacturing is really about people. It’s about someone earning an income, supporting a family and building a future.

 

That’s why we’re developing a Manufacturing Support Policy to make it easier for manufacturers to invest and expand across Cape Town’s industrial areas. I’d love to see many more products proudly made in Cape Town reaching markets across South Africa and around the world.

 

Another project I’m proud of is our Ease of Doing Business Index.

 

It’s a practical management tool that tracks how we’re performing on key business-facing services like planning approvals, electricity connections, property transactions and business licensing. If there are unnecessary delays, we identify them and fix them. Government should never be the reason someone decides not to invest.

 

We’re also continuing to strengthen Jobs Connect.

 

More than 177,000 Capetonians have registered on the platform to access employment and learning opportunities. Employers can advertise vacancies free of charge, and job seekers can apply directly. Sometimes creating opportunity is simply about connecting the right people.

 

The informal economy is equally important.

 

Thousands of Capetonians earn a living through informal trading, so we’re investing in better trading infrastructure and modernising the Public Trading Bylaw to create clearer rules and more opportunities. We’ve also kept informal trading tariffs at a zero increase because we want to support entrepreneurs wherever we can.

 

Alongside all of this we’re driving several important policy reforms, including the Manufacturing Support Policy, the Tourism Framework, a modernised Public Trading Bylaw, an updated Business Support Policy and continued improvements to our Ease of Doing Business programme. These aren’t policies for the sake of policies. They’re practical reforms that make Cape Town more competitive.

 

I’m also passionate about unlocking City-owned land where it’s appropriate. If land can be released for residential, commercial or industrial development, it attracts investment, stimulates economic activity and creates jobs.

 

Another priority is workforce development.

 

I don’t believe in training for training’s sake. We need to prepare people for jobs that actually exist. That’s why we work closely with industry to understand where demand is and then support programmes that equip Capetonians with those skills.

 

Whether it’s call centre training, clothing manufacturing or other growth sectors, the goal is always the same: connect people to real employment opportunities.

 

We’re also helping businesses reach international markets through initiatives like the Cape Trade Portal, which gives exporters practical information and guidance. It’s another example of helping local businesses grow beyond our borders.

 

When you step back, all of these initiatives are connected.

 

We make it easier to do business. We help businesses grow. We attract investment. We improve connectivity. We support exports. We develop skills. And together those things create jobs.

 

People sometimes ask me what success looks like.

 

Of course I’d like to see more investment, more flights, more tourists and more exports.

 

But success is really much simpler than that.

 

It’s more people in work.

 

It’s businesses choosing to invest in Cape Town.

 

It’s young entrepreneurs believing they can build something here.

 

And it’s families seeing a future in this city.

 

I often say my job is to open doors. Whether that’s opening a new export market, securing another airline route, attracting an investor or helping a business expand, every door we open creates opportunities for someone else.

 

At the end of the day, that’s what this portfolio is all about: creating the conditions for more jobs, more investment and more opportunity for the people of Cape Town.