The Attractive Magic of Cape Town

With established agricultural and tourism industries, a diverse sector base, and a pool of young, innovative talent, Cape Town is a hub for creativity, inspiration, and business. Cape Town’s position as a gateway to the African continent is strengthened by its good governance and top-notch infrastructure.

 

What makes it stand out compared to cities like New York or Singapore? It’s an inclusive, sustainable metropolis full of opportunity for global brands and local start-ups alike. Cape Town stands out as a distinguished city in South Africa, having contributed R658 billion to the country’s overall gross domestic product (GDP) of R4.6 trillion.

 

 

 

 

 

The Cape Town port is home to South Africa’s second busiest container port and an international airport (Cape Town Airport), making it a hub for trade and travel. Cape Town’s abundant natural assets, established agricultural and tourism industries, broad sector base, and growing youth population, offers a rich business environment with stable governance. Furthermore, Cape Town’s expansive agricultural surroundings make it a processing, trade, and retail hub for export-quality produce.

 

Current Economic Trends

Even though Cape Town typically accounts for around 10% of the employment rate in South Africa, it has contributed approximately 34% of the country’s total employment growth between the second quarter of 2022 and the second quarter of 2023.

 

Economic output and business expansion in the city has risen from R396,2 billion to R437,2 billion in constant prices with an additional 196 000 full-time equivalent (FTE) formal jobs being added (South African Regional eXplorer; SARS).

 

 

 

 

Cape Town’s economic growth surpasses the national average due to its competitive edge in key sectors. The city comprises leading industries that have been boosted by the foreign direct investment effect on economic growth, such as Business Services (22.5%) and Software and IT Services (21.3%), as well as manufacturing sub-sectors like electronic and electrical products. This strategic positioning has established Cape Town as one of South Africa’s foremost business and investment hubs.

 

Positive growth prospects include:

 

• Increased national economy share
• Increased new company registrations
• Large investment projects
• A growing DigiTech sector
• Rapidly expanding B2B and B2C e-commerce
• Increased exports
• Improved trade balance
• Future economic trends

Future Economic Trends

The city is rapidly expanding its infrastructure and accessibility, making it a hub for growth and development. While business services, construction, retail, agro-processing, and tourism have been the driving forces behind employment growth so far, there are some exciting changes on the horizon. The trade, manufacturing, transport, and communications industries are positioned to be the future sectors with the highest growth potential and greatest contributors to South Africa’s GDP.

 

Employment in Cape Town

The constant innovation and ground-breaking advancements within various sectors has allowed for a space where businesses have access to top-tier talent and skills. The number of people employed by Cape Town increased by 55 936 on a quarter-on-quarter basis, to a total of 1.76 million in the second quarter of 2023. Furthermore, foreign investment by well-established companies continues to boost the growing number of people who are employed in Cape Town.

 

The dynamic landscape across various sectors has paved the way for businesses to tap into a pool of exceptional talent and skillsets which has assisted the city in maintaining a 7.4% year-on year increase of employment according to the Quarterly Labour Force Survey. With foreign investment from established companies on the rise, the number of people employed in Cape Town is set to grow even further.

 

 

 

 

Continued Economic Momentum

The province is experiencing a surge of growth in cutting-edge industries, including information technology, telecommunications, medical and research equipment, and other hi-tech processes. This expansion is further broadening the already impressive industrial core of the city.

 

The city is also leading the charge for renewable energy and clean-tech industries. Several initiatives, including the designation of the Atlantis Green Tech SEZ and the founding of several renewable company head offices in the city, are paving the way for a sustainable future.

 

Cape Town’s ‘green’ reputation presents potential for the growth of an industry focusing on electric vehicle manufacturing and servicing, as well as medical cannabis production.

 

Continued economic momentum is further being cemented through:

 

• Sustainable growth in global trade partners
• National and local policy implementations
• Preservation of the natural environment
• Further investment in trade infrastructure
• Strengthening globally competitive sectors
• Evolving human resource skills development
• Growing information technologies
• Exploration of new global market opportunities

 

 

 

 

 

Africa’s Hub of Opportunity

Cape Town ranks highly as an established business culture with trusted financial institutions. Furthermore, with the Cape Town International Convention Centre at its heart, this city is attracting foreign firms and new investment groups looking to tap into the local investment scene.

 

Western Cape’s ever-growing film and media production industry not only attracts foreign audiences, but also boosts the city’s tourism economy. In addition to its beauty, Cape Town is also strategically positioned on the west coast of Africa, making it a powerful skills pipeline and the best place in Africa for hi-tech.

 

The city is rapidly transforming into a powerhouse in Africa’s financial landscape, claiming the prestigious position as the continent’s second-largest financial hub. This exceptional growth is largely fuelled by the burgeoning fintech sector, attracting an influx of foreign investors and tech innovators. The city has become a fertile ground for over 60 fintech start-ups, a testament to its vibrant tech ecosystem.

 

Adding to its allure, Cape Town is also the chosen base for the top four accounting giants and numerous leading law firms, highlighting its status as a critical centre for business and finance. This union of technology, investment, and professional services makes Cape Town not just a scenic wonder, but a flourishing economic force on the African continent.

 

The soundness of banks in the region has been rated third in the world by the WEF, and the city offers good public transport linkages. With its large agricultural surroundings and position as a trade and retail hub for farming products, Cape Town is a blooming centre of industry and investment.