BPO sector generates investment of over R4,7 billion for Cape Town

STATEMENT BY THE CITY’S MAYORAL COMMITTEE MEMBER FOR ECONOMIC OPPORTUNITIES AND ASSET MANAGEMENT, ALDERMAN JAMES VOS

The City of Cape Town’s investment in the Business Processing Outsource sector (BPO), through its Strategic Business Partner BPESA WC, has generated an investment of over R4,7 billion for the last five years. The sector currently employs 59 000 people in the Western Cape.

One of my priorities as the Mayoral Committee Member for Economic Opportunities and Asset Management, is to facilitate investment that will lead to job creation and skills development in Cape Town. My department funds several strategic business partners that provides skills training and job readiness programs to achieve this goal.

To give impetus to this priority, I recently undertook a number of call centre visits that included Amazon, ARA Group, Capita and Sigma.

In addition, I was invited to officially open the Sigma call centre that is located in Retreat. The new site has added another 500 employees to the Sigma workforce, which the organisation plans to double in the next few months.

These companies collectively employ 8 730 individuals in our city and contribute to an annual offshore investment value of R7 billion.

Our efforts have yielded a number of successes as Cape Town has maintained the lowest unemployment rate of all the metros in the country over the past few quarters.

Over the past five years the partnership with BPeSA WC has secured 19 604 jobs for residents.

The Business Process Outsourcing sector is identified as a priority sector for the City, due to its job creating potential, especially for young, unemployed people in our city. During the past financial year alone, we secured over 4 022 employment opportunities through this sector.

The BPO sector has shown a steady year-on-year growth of 22% during the past four years. This sector has social and economic significance concerning employment creation and the ability to contribute to poverty alleviation and reducing inequalities.

In recognition of the above, the City of Cape Town has provided both financial and non-financial support to BPeSA WC. BPeSA is responsible for the BPO industry development in Cape Town to enhance the competitiveness and attractiveness of Cape Town as an offshore destination for call centre operators.

I have also had the pleasure of engaging with several organisations who are doing stellar work in this sector.

I am very pleased to say that many of these call centre operators are now looking to establish businesses in previously disadvantaged areas, as it creates opportunities in places where people live.

It gives me pleasure to confirm that my team and I are working closely with a number of companies from this sector to help facilitate further investments in areas such as Mitchell’s Plain and Bellville.

This is a vibrant industry that is full of opportunity and young talent. This sector has key leverage that we use to position Cape Town as a globally competitive city.