CITY OF CAPE TOWN GENERATES INVESTMENT OF R2.67 BILLION, CREATES 6236 JOBS DESPITE ECONOMIC DOWNTURN

The Citizen 

Cape Town City Hall. Picture: iStock


CAPE TOWN – The city’s administration says it is making gains despite the tough economic outlook in SA.

The City of Cape Town, via its enterprise and investment department under the directorate of the mayor, has facilitated R2.67 billion worth of investment which has resulted in 6236 direct jobs created for the people of Cape Town in the past financial year (July 2016 – June 2017), the city said on Sunday.

“The achievement of R2.67 billion worth of investments, 6236 direct jobs created, and 2052 people who received training comes against the City of Cape Town internal targets of R2.5 billion worth of investment, 5000 jobs, and 800 training initiatives respectively,” mayor Patricia de Lille said.

The enterprise and investment department, through collaboration with its partners, facilitated the training of 2052 people in various skills development programs, she said.

The city managed to attract the investments and skills training via its partnership with the special purpose vehicles (SPVs) and the Western Cape Destination Marketing, Investment, and Trade Promotion Agency (Wesgro).

SPVs were established to fulfil mandates in line with the Western Cape government and city objectives of investment facilitation, industry development, job creation, and economic growth; while Wesgro was established by the Western Cape government in collaboration with the city to develop and grow priority sectors in Cape Town.

The SPVs supported by the city included business process enabling South Africa WC, GreenCape, Cape Information and Technology Initiative, The Cape Craft and Design Institute, Cape Town Fashion Council, and the Western Cape Clothing and Textile Service Centre, De Lille said.

The city, for the past financial year, contributed R21.8 million in funding to the organisations to use to facilitate investment and industry development through sector-specific interventions. These sector-specific interventions were intended to enhance sustainable growth and competitiveness in identified sectors that contributed to the city’s economy.

The investments were facilitated in business process out-sourcing, manufacturing, ICT, real-estate development, and infrastructure. The source countries for these investments included the United Kingdom, Australia, The Netherlands, France, and the Middle East, as well as new and expansion projects by local companies.

“These results have certainly made the city’s support to these organisations worthwhile and are in line with the organisational development and transformation plan’s priorities to position Cape Town as a globally competitive business destination and to enhance economic inclusion,” she said.

“These are massive gains for Cape Town, especially in light of the various economic setbacks that South Africa has suffered in the past months, including ratings downgrades and electricity and water challenges, among others.”

With South Africa being downgraded by various rating agencies to sub-investment grade, the city’s economy had managed to perform well in terms of investment and job creation, De Lille said.

“The significant levels of investment attracted into Cape Town demonstrate the resilience of the city economy and the confidence investors have in the quality of the City of Cape Town’s governance,” Wesgro CEO Tim Harris said.

“By cutting red tape, making it easier to do business in the region, and ensuring clean and efficient government, the city has successfully positioned itself as a top destination for investment globally. Wesgro is proud to serve as Cape Town and the Western Cape’s official tourism, trade and investment promotion agency, and together with the mayor’s economic team, we will redouble our efforts to secure investment into the local economy over the next year. This year alone, we will undertake more than 75 missions around the world, sharing this excellent achievement and encouraging more businesses to make Cape Town their home,” Harris said.

“The city is proud of its association with these partnerships and takes great pride in building and sustaining relationships with these organisations that support the city’s vision of an opportunity city that creates an enabling environment for economic growth and job creation, to provide assistance to those who need it most, to deliver quality services to all residents and to serve the communities of Cape Town as a well-governed and corruption-free administration,” De Lille said.

“We will be getting on with pushing the boundaries even more and letting the world know that Cape Town is open for business so that we can alleviate poverty through creating the much-needed jobs for the people of Cape Town,” she said.

– African News Agency (ANA)

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