South Africa’s gross GDP of $366-billion ranked it as the world’s 33rd biggest economy and the biggest in Africa, according to World Bank (2018) statistics.
The investment climate in South Africa is also stable, with a strong history of upholding the rule of law and an internationally respected Constitution. South Africa performs well when it comes to doing business in aspects such as the availability of credit, the protection of minority investors and paying taxes.
Finance is available from various banks, the government, and private and public enterprises, and can be tailored to different business needs. Each financing source has its own set of rules, processes and procedures when applying for and accessing capital.
Cape Town and the Western Cape
International investors have identified numerous opportunities in Cape Town and the Western Cape, leading to growing foreign investment. Over the past decade the province attracted 299 foreign direct investment projects, attracting over US$47-billion.
The Western Cape Government has also assisted business growth for both local and international competitors by creating a Red Tape Reduction Unit aimed at facilitating a business-readiness and investor-friendly environment.
The tourism sector is a large and ever-developing industry and continues to show growth in the province. The Western Cape is also one of the frontrunners in the green economy, with a number of prominent renewable energy and infrastructure projects, both large scale and small scale.
For more than 30 years, Wesgro has been the champion for economic opportunities on behalf of the City of Cape Town, the Western Cape government and the Cape’s private sector, facilitating economic growth and job creation.
Wesgro’s services to investors include investment recruitment and promotion, business facilitation, aftercare and advocacy. The agency’s Investment Promotion Unit attracts direct investment by positioning Wesgro as the first port of call for potential and existing investors by providing essential knowledge, access and expertise.
Sector-specific relationship managers proactively recruit investors, while the unit’s Business Growth Services division provides dedicated support to businesses already established in the Western Cape.
The unit fosters potential investment by using intelligence generated by the Research team to provide the leads for engaging with foreign embassies, consulates, high commissions and chambers of commerce – locally and abroad.
The unit also operates as a strategic bridge between the government and the private sector, by fostering key relationships with private-sector entities – including financial institutions, professional service providers, policy experts and sector associations – to assist inbound investors in accelerating the investment process.
Wesgro’s Investment Promotion Unit focuses on attracting investment, promoting the Western Cape as an investment destination, and supporting businesses in maintaining and expanding their business operations here. Key sectors include agri-processing, oil and gas, manufacturing, and information and communications technology.
A Guide to Doing Business in the Western Cape 2019
Compared to India, Brazil and other OECD countries, South Africa has a competitive advantage in its ease of starting a business with low associated costs equal to 0.2% of the economy’s income per capita (Gross National Income), i.e. USD5,430. There are fewer procedures required to starting a business in South Africa, which has been significantly facilitated by the South African government’s commitment to creating a business environment conducive to economic growth and sustainability.
Download this brochure to learn about everything you need to know about doing business in Cape Town and the Western Cape.