START-UP CAPITAL OF AFRICA
The City is also a technology leader in the domains of mobile software, revenue management and payment processes. The value of FDI over the last 10 years in the Software & IT services is ZAR4 704 million (7.1% of total FDI into Cape Town over that period).
Of the 742 emerging tech or tech-enabled companies surveyed as part of a 2015 study by PwC study, 56% were headquartered in the Western Cape, of which the majority are based in Cape Town.
Similarly, the 2015 Ventureburn Survey (2015) found that 59% of start-ups are based in the Western Cape. The concentration of these companies in Cape Town is reflected in the fact that the Western Cape hosted 75% of venture capital deals in 2015, a 40% increase from 2012 (SAVCA, 2015).
The ongoing advancement of Information Technology infrastructure and innovative software developments, has allowed the e-commerce industry to grow at a rapid pace within the city.
Currently Cape Town based companies account for the 10 most visited e-commerce websites in the country (Effective Measure, 2014). In an industry that is strongly reliant on supply side factors like the availability of ICT skills, and the prevalence of entrepreneurship, Cape Town has been able to carve out a competitive niche despite having physical access to a much smaller market than the metros in Gauteng.
So successful has Cape Town been in carving out this niche, that it is now widely considered to be a tech and e-commerce hub within Africa.