Wesgro notes that Fitch has affirmed South Africa's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB+' with a Stable Outlook.
Wesgro has been on a mission since this year’s earlier downgrades to remind all existing and potential investors that South Africa is a key economic player on the continent, and that the Cape remains a gateway to it and the rest of the Africa.
Fitch cited “deep local capital markets” such as Cape Town which currently has the highest possible level of credit quality from ratings agency Moody’s as one of the reasons for the BB+ affirmation. Cape Town is also ranked 21st for its foreign direct investment (FDI) strategy by fDi Intelligence’s Global Cities of the Future 2016/17 and is the only African city listed in this category.
“The City of Cape Town is determined to continue getting on with prioritising our work to attract investment by creating an enabling environment for job creation and economic growth. Key to this work is a strong, sustained focus clean, corruption free governance. This is a key factor which investors consider when choosing where to invest their money. We are committed to maintaining our prudent financial management, by spending public money where it is meant to be spent but also to ensure that investors keep looking to our shores as a leading model of clean governance and a globally competitive business destination,” said Executive Mayor Patricia de Lille.
Meanwhile the city and province as a whole has managed to maintain a stable political and market-enabling policy environment, avoiding the “deteriorating governance” cited as negative contributor to Fitch’s national rating decision. “In the Western Cape, we believe in transparent processes and we work hard to root out corruption. The majority of the municipalities in our province are consistently awarded with clean audits from the Auditor-General of South Africa, an indicator of the good management of public money. While we are not immune to national political instability, it is clear that leading international ratings agencies recognise the commitment to good governance of this region,” said Minister of Economic Opportunities Alan Winde.
“As Cape Town and the Western Cape’s official tourism, trade and investment agency, Wesgro intends to do everything we can to maintain confidence in the Cape economy, and ensure increased levels of investment. That is why we are embarking on over 70 tourism, trade and investment promotion missions over the current financial year to land even more investment for the region,” said Wesgro CEO Tim Harris.
Just last month Wesgro facilitated a trade and investment mission to the UK with Minster Winde which led to potential partnerships in tech and rail transport as well hosted its seventh and biggest annual Africa Day Business Seminar which had over 100 attendees from across the continent.
In the second half of this year Wesgro will also open the Cape Investor Centre, a new one-stop shop where large investors can easily complete local, provincial and national regulatory processes in a single location facilitated by Wesgro.
