Top reasons to do business in Cape Town
Category Commercial and Industrial News
The Mother City has recently been voted "The Greatest City on Earth" in the Telegraph Travel Awards and there are many great reasons for this. From breathtaking scenery and award-winning wines to unforgettable monuments and a foodie scene second to none, Cape Town has it all. From an industrial and commercial perspective, an ever-increasing number of factors are leading both entrepreneurs and established business to view Cape Town as South Africa's ultimate business destination. 3Cube Property Solutions unlocks some of the factors that make Cape Town an outstanding place to do business.
Superior infrastructure and development
The City of Cape Town spends billions every year on maintaining existing infrastructure and building new infrastructure every year - and it shows. Fibre-optic cables with a combined length of over 800km have been installed, providing a wealth of opportunities for entrepreneurs in every sector. In February 2023, City of Cape Town mayor Geordin Hill-Lewis launched a R120 billion infrastructure portfolio and a project pipeline that is designed to position Cape Town as a beacon of hope in South Africa and beyond. According to Hill-Lewis, 2022's infrastructure budget was R5.7 billion and by 2025, it will be more than R12 billion.
Ease of doing business
Between 2015 and 2018, the City of Cape Town worked hard to improve the competitiveness of its business environment, focusing on improving service delivery and putting action plans into place. The result was Cape Town emerging in 2018 as the leading city in South Africa for doing business. In that year, they were named by the Subnational Doing Business in South Africa report as South Africa's leading city for dealing with construction permits and getting electricity. This report was published by the World Bank and National Treasury. The city's Ease-of-Doing-Business programme is designed to achieve specific goals, including the availability of business support services, a culture of business-friendliness and an efficient regulatory regime.
Good governance
The City of Cape Town is highly regarded for its sound fiscal position and prudent financial management. According to Moody's Investors Service, Cape Town has consistently reported robust operating surpluses, with stronger liquidity than that of other South African cities. Stronger ratings by Moody's place Cape Town in an investment grade where the associated risks are low, and this rating is a result of Cape Town's ongoing strong budgetary performance, strong liquidity position and moderate debt levels.
Less loadshedding
Cape Town is taking strides to end loadshedding over time by buying power on the open market and paying businesses and residents to sell power back to the city. There are also incentives in place for voluntary energy savings, as well as municipal power-generation projects such as the Steenbras Hydro Pump Station. With businesses around South Africa being crippled by loadshedding, Cape Town offers a beacon of hope.
A thriving startup ecosystem
Cape Town is aptly described as Africa's tech capital. It is already home to a diverse array of startups, and small businesses are growing from strength to strength as a result of the city's advanced digital infrastructure, ability to attract top talent and outstanding governance. Tellingly, Cape Town was recently named the third most ambitious city in the world in a report by London-based card payment provider, Dojo.
Another factor that startups and businesses in Cape Town have going for them is access to commercial and industrial properties that meet their needs. 3Cube Property Solutions is your ideal property partner in Cape Town. We pride ourselves on our personalised service and on finding you the ideal property to buy or lease for your business. Contact us today.
Author: 3Cube Property Solutions
