Cross-section of Cape Town’s CBD economy
The report reviews the current economic and social state of Cape Town’s central business district (CBD), and sets a benchmark for tracking its future development and growth.
The Central City Improvement District of Cape Town (CCID) launched the first edition of the State of Central City Report that reviews the current economic and social state of Cape Town’s central business district (CBD).
Released on Wednesday, the report reviews the current economic and social state of Cape Town’s central business district (CBD), and sets a benchmark for tracking its future development and growth.
The document has a particular focus on the CBD’s status as world class business city. This year’s is the first edition of what will be an annual publication.
Rob Kane, Chairman of the CCID, says the report is intended to be an authoritative guide for investors, business decision makers and government officials, who are looking for current information on the economic state of the Cape Town CBD.
The report shows that the CBD has the highest concentration of economic activity in the metro pole. The CBD contributes to more than R216 million each year, money that not only supports the continued growth of the CBD but contributes heavily to service provision and government investment throughout the rest of the metro-region. Kane says, “The CBD contributes 24.5% of business turnover into the larger Cape Town metro region. This world class business district is strategically placed as an investment link to the rest of South Africa and a gateway into the African continent.”
“The CBD provides in excess of 30% of the city’s entire payroll and I believe its continued growth through tough economic times is largely due to our ability to attract and retain businesses. Its economic importance cannot be overstated.”
The CBD hosts 90% of Cape Town’s international events (both business and leisure), and 75% of major local events, which are key drivers of economic activity. By bringing people from far and wide into this area, these events generate a significant GDP contribution in excess of R1.5 billion.
“The bottom line is that the CBD is open for business and is beyond doubt a globally competitive business hub. This report illustrates the best that the CBD has to offer, but most importantly points towards an industrious world class city,” says Kane.
Some of the other findings revealed in the report are:
• Investment in property over the past three years amounts to R4.6 billion;
• The total current value of property in the CBD is more than R21 billion;
• Retailers occupy 380 000m2 of retail space with over 1200 retail shops;
• Over 500 legal service offices are located in the CBD making it one of the largest legal hubs in the country;
• Medical health and cosmetic services is the second biggest sector after legal services. It is followed by the financial services and banking sector;
• The CBD boasts over 32% of the city’s total AAA and A grade office space;
• The expansion of the Container Terminal Port at the harbour edge of the CBD will double its cargo handling capacity to over R14 million units. Imports and exports include oil, vehicles, chemical products, grains, amongst many other products;
• It holds 47% bed space in the city, making it an economic gateway for domestic and international visitors;
• Users of the CBD (87%) feel that Cape Town has one of the safest CBDs in the country and 82.6% feel safe on the street. Close to 80% believe the CBD looks clean and orderly.
The review also reveals findings from an independent survey to assess the perceptions of the district as a place to work, live, play and conduct business. The survey sought the opinion of businesses and the general public.
Key results of the business survey reveal that:
• 81% of businesses experience an overall level of satisfaction about being located in the CBD;
• 78% said they are likely to remain in the CBD;
• 97% believe Cape Town has proved itself as host of world-class events;
• 89% believe Cape Town’s CBD is a well-governed city;
• 80% of Cape Town businesses believe that the CBD is the safest CBD;
• 88% believe that the Integrated Rapid Transit system is a solution for making the CBD more accessible for the 300 000 people who people who commute in and out of the CBD each day.
Kane says, “From corporates to creatives, the CBD brings together a diverse collection of people who have and continue to build our economy. Cape Town’s CBD and the people who live, work and play within are set to create some of the most unique and exciting economic activity in the world.”
