When it comes to retail, Cape Town and Western Cape companies have a significant foothold in the rest of Africa. Western Cape companies are a major investor on the continent, with retail making up almost half of outward investment into Africa.
The retail, wholesale, hotel and restaurant sector makes up the second largest segment of the Western Cape economy, following financial and business services. The majority of South Africa’s large supermarkets and retailers are headquartered in Cape Town and the Western Cape, many of them with a footprint across the continent.
South Africa’s mature retail sector is a big driver behind expansion into sub-Saharan Africa. South African supermarkets have extensive operations in countries like Angola, Botswana, Lesotho, Mozambique, Kenya, Namibia, Nigeria, Swaziland, Zambia and Zimbabwe. Ongoing formalisation of, especially, food and grocery retail across Africa represents high growth potential.
Increased internet and device penetration is also driving uptake of online retail shopping in South Africa.
Cape Town is a location of choice for multinationals in Africa, underpinned by factors such as a skilled labour force, established infrastructure, and a world-class banking and financial services sector. Almost half of Western Cape outward investment into Africa by business activity is in retail.
The greater Cape Town region is also well-positioned to take advantage of e-commerce and online retail, being home to most of the headquarters of the well-known e-commerce companies in South Africa and the majority of new tech start-ups operating in the e-commerce ecosystem.
Cape Town, which is ranked in the top 30 cities at the forefront of global tech in the world, presents a competitive African location for the future of retail.
Please download our 2020 International Trade Mission Plan, visit the market opportunities page, or contact us to get in touch with the dedicated Trade Unit, which is ready to answer any questions.
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The Wesgro Trade Unit provides a free and confidential service to help you establish and grow your business in Cape Town and the Western Cape. Our diverse economy, strong skills base and well-connected infrastructure present many opportunities for foreign buyers seeking high-quality goods and services, as well as exporters looking to expand into the African market.
Read our latest sector and country fact sheets and research reports to identify new opportunities to grow your business.