Cape Town - Economy

Economy

Cape Town is the economic hub of the Western Cape Province, South Africa's second main economic centre and Africa's third main economic hub city. It serves as the regional manufacturing centre in the Western Cape. It also has the primary harbour and airport in the province. The large government presence in the city – both as the capital of the Western Cape and the seat of the National Parliament – has led to increased revenue and growth in industries that serve the government. Cape Town hosts many conferences, particularly in the recently expanded Cape Town International Convention Centre, which opened in June 2003 and is due for another expansion within the next year.

Cape Town has recently enjoyed a booming real estate and construction market, because of the 2010 World Cup as well as many people buying summer homes in the city or relocating there permanently. Cape Town hosted 9 World Cup matches: Six 1st round matches, one second round, one quarter final and a semifinal. The central business district is under an extensive urban renewal programme, with numerous new buildings and renovations taking place under the guidance of the Cape Town Partnership.

Cape Town has four major commercial nodes, with Cape Town Central Business District containing the majority of job opportunities and office space. Century City, the Bellville/TygerValley strip and Claremont commercial nodes are well established and contain many offices and corporate headquarters as well. Most companies headquartered in the city are insurance companies, retail groups, publishers, design houses, fashion designers, shipping companies, petrochemical companies, architects and advertising agencies.

Much of the produce is handled through the Port of Cape Town or Cape Town International Airport. Most major shipbuilding companies have offices and manufacturing locations in Cape Town. The Province is also a centre of energy development for the country, with the existing Koeberg nuclear power station providing energy for the Western Cape's needs. Recently, oil explorers have discovered oil and natural gas off the coast in the Atlantic Ocean.

The Western Cape is an important tourist region in South Africa; the tourism industry accounts for 9.8% of the GDP of the province and employs 9.6% of the province's workforce. In 2010, over 1.5 million international tourists visited the area.

With the highest number of successful Information Technology companies in Africa, Cape Town is an important centre for the industry on the continent. Growing at an annual rate of 8.5% and an estimated worth of R77 billion in 2010 nationwide the IT industry in Cape Town is becoming increasingly important to the city's economy.

The city was recently named as the most entrepreneurial city in South Africa, with the percentage of Capetonians pursuing business opportunities almost three times higher than the national average. Those aged between 18–64 were 190% more likely to pursue new business, whilst in Johannesburg, the same demographic group was only 60% more likely than the national average to pursue a new business.