The number of new businesses established in central Cape Town grew by 186 to 3 302 in 2023, with 62 new retail outlets increasing this sector’s footprint by the broadest margin to 1 305 businesses, according to the Cape Town Central City Improvement District (CCID),
The CCID operates in the 1.6 km² area of the Cape Town CBD in which it is mandated to provide services that enhance those offered by the City of Cape Town.
Working with the City and the South African Police Service (SAPS), the CCID enhances or provides additional services to improve safety, cleanliness and social development – such as working with street people − in its geographical footprint. It also promotes business and property investment in the central city to ensure the CBD “retains its status as the most economically sound city centre in the country”.
Says the CCID: “With its high occupancy rates, healthy property market, thriving economy and iconic beauty, Cape Town exemplifies what can be achieved through a successful private-public partnership.”
In a statement marking National Entrepreneurship Month, chairperson of the CCID Rob Kane says research showed that business “is booming” in the CBD. In addition to being a premier tourist destination, “Cape Town and its CBD offer a dynamic economy for business investment and a fertile environment for innovation and entrepreneurship.”
He says that business in the city and the CBD is set to benefit from the expected arrival of an estimated 3 million international tourists and 7 million local visitors in the year ahead.
“The CBD is a sought-after destination for both locals and tourists, offering a unique experience with award-winning restaurants, iconic cultural institutions, a world-renowned coffee culture, destination clothing stores, and a thriving local art and craft scene.”
Recently, Cape Town earned the title of World’s Best Food City in the 2024 Condé Nast Traveller Readers’ Choice Awards, achieving an impressive score of 95.65 and outshining renowned culinary destinations like Tokyo, Rome, and Porto.
Citing data from the State of Cape Town Central City Report 2023: A Year in Review, the CCID’s award-winning annual report on the CBD economy, Kane says that the number of businesses that call the Central City home increased to 3 302, with 186 new businesses opening during 2023. Growth was experienced in 10 of the city’s 17 business sectors during 2023.
“Certain economic sectors flourished while others remained resilient in the face of economic headwinds,” he explains. “The ongoing renaissance of the CBD also saw growth and investment in its residential and commercial properties. This attracts more people to the city, benefiting inner-city businesses.”
One of the CBD’s dominant business sectors, the retail industry, increased its footprint by the broadest margin to 1 305 businesses, with 62 new retail outlets opening in the CBD during 2023.
A quarterly Business Confidence Index, conducted by the CCID, shows a rise in confidence, with most retailers satisfied with trading conditions in the CBD. Half of the respondents believe that business activity has fully recovered from the pandemic, while 44 % say it has almost recovered.
During 2023, general corporates and head offices increased their presence in the Central City by 36 new businesses to total 108, while ICT, telecoms and call centres grew by 28 new entities to 106. Cape Town’s CBD is favoured as an offshore ‘business process outsourcing’ (BPO) destination, making up 42.9 % of the Western Cape’s BPO market.
Kane says: “The influx of BPO institutions has secured Cape Town’s status as the digitech hub of Africa and a leader in African BPO innovation. Along with government investment, the City of Cape Town is driving job creation through its strategic business partner, CapeBPO.”
In the CBD the financial sector, including investment, insurance and banking, expanded from 171 entities in 2022 to 190 in 2023, with the Foreshore attracting most of this growth.
Another highlight from the report was the influx of 19 new artistic studios into the Central City during 2023, with 43 studios currently making their home in the CBD.
Says Kane: “There is a vibrant art culture in town, with many top tier galleries. In addition, it is the seat of the country’s Iziko South African National Gallery and the annual Investec Cape Town Art Fair, which is Africa’s largest art fair, attracts local, national and international visitors to the CBD.”
“Given the Central City’s growing consumer base, coupled with a vibrant mix of retailers and businesses, successful trading conditions in the Central City, which have characterised 2024, look set to continue in 2025,” concludes Kane.