City geared for attracting investment and job creation
18 April 2021
Businesses are encouraged to contact the City of Cape Town to find out about financial and non-financial incentives on offer to domestic and international businesses investing in the city for the first time or expanding their existing operations and creating new jobs. Read more below:
Since the City’s expanded investment incentive scheme was adopted in November 2019, I have been keeping Capetonians informed of the take up of these incentives.
These incentives are a concrete way the City is working to ensure Cape Town remains regionally and globally competitive, more especially as we drive our economic recovery post the Covid-19 pandemic.
Even through the trying times of the national lockdown and faltering economic performance, businesses in Cape Town kept on doing what they do best, as much as they could. It is essential that as a well-run, opportunity City we do our best to match their efforts.
The City offers both financial and non-financial incentives to domestic and international businesses investing in the City for the first time or expanding their existing operations and creating new jobs.
- Financial incentives include: building plan and land use application fee waiver; development contribution deferral and write off up to R1 million; and a special electricity tariff for large power users.
- Non-financial incentives include: prioritised single-point investment facilitation; building plan and land use application fast-tracking; and the fast tracking of occupancy certificates.
I am delighted to confirm that from the 2018 financial year to date, the City’s Investment Facilitation Unit has supported 18 confirmed investments to the total value of R1,486 billon resulting in 1190 potential jobs.
In the second quarter of 2020/21 (October to December 2020), the Unit was involved in 70 engagements as part of the single point investment facilitation service with 14 different investors interested in starting an operation or expanding in Cape Town.
These investors spanned a wide range of activities from renewable energy, manufacturing, construction materials, agri-processing and information technology.
Additionally, five companies benefit from the electricity incentive tariff – three in Atlantis and two in other areas of Cape Town.
It was particularly encouraging for me to receive feedback from the City’s Investment Facilitation team that bidders were putting together gas-to-power applications as part of the national Department of Energy’s Emergency Power Procurement Programme. Such investment will go a long way to shielding our manufacturing sector and protecting jobs which may be lost as a result of load-shedding.
It is clear that while the pandemic has affected economic activity, many commercial entities are taking a long view and have simply delayed rather than cancelled their investment plans.
That said, we will continue to put plans in place to ensure Cape Town’s economic readiness. Cape Town’s investment offering remains a compelling one from a business, service delivery and lifestyle point of view.
- The Invest Cape Town team offers a number of customised services, free of charge. Email: firstname.lastname@example.org or visit investcapetown.com for more information.
- If you are an SMME wanting to grow, or wanting to start a business, The Business Hub can help with any part of the process, including connecting you with business partners, funders, support organisations or City departments. The hub can be contacted on email@example.com