FOREIGN COST EFFECTIVENESS & OPEX

Cape Town offers cost-effective foreign direct investment and OPEX

Widely regarded as one of the friendliest and most exciting metros, for locals and international visitors alike, Cape Town is also proving to be a cost-effective investment destination. The Mother City has long been recognised as one of the leading global cities in Africa. This is an accolade earned from ongoing efforts being made by the City and its private sector partners to ensure that the metro is on the international map for business and investment.

In fact, between January 2003 and December 2018, a total of 344 Foreign Direct Investment (FDI) projects (mainly from the United Kingdom, United States, Germany and China) were made into Cape Town. This totalled ±R110 billion, which is an average investment of R319.4 million per project. An estimated 24 446 jobs were also created during this period.

“The City contributes to economic growth by providing stable governance, clear policy direction, delivery of infrastructure, support services, investment promotion, facilitation, economic research and striving to reduce the administrative burden of doing business. Encouraging investment is one of the key features of our City development strategy”. Executive Deputy Mayor, Alderman Ian Neilson (2017)

Cape Town’s Global Competitiveness

Cape Town has been listed as one of the top cities in the world on the Global Cities of the Future winners (2016/17) for Foreign Direct Investment (FDI). It was also the only African city to be listed in this category and is a testament to the ease of doing business here. Other cities listed included Edinburgh, Hong Kong and Chicago. According to FDI Intelligence, Cape Town ranked 21st in an international survey of these leading cities and was specifically noted for the metro’s overarching strategy to attract and retain FDI. This global competitiveness has been acknowledged in several other areas too:

• 2018 Quality of Living Rankings, Mercer. Composite ranking: 94 out of 231. 3rd among African cities.
• 2018 Global Cities Index and Emerging Cities Outlook, AT Kearney. Composite index ranking: 73 out of 135 global cities. Composite outlook ranking: 113 out of 135 global cities. 3rd among African cities.
• 2018 Global Metro Monitor Map, Bookings Institution. Composite ranking: 284 out of 300. 8th among African cities.
• 2013 Benchmarking global city competitiveness, The Economist Intelligence Unit. Composite ranking: 77 out of 120. 2nd among African cities. 28th position out of 120 cities for Institutional Effectiveness and 68% for Human Capital (69th position out 120 cities Physical Capital).
• 2018 PwC Cities of Opportunity Report: Cape Town Africa’s Opportunity City. Overall, Cape Town ranks 24 out of all 31 cities, and sixth out of the middle-income country cities (MICCs), behind Beijing, Kuala Lumpur, Moscow, Shanghai and Mexico City.

At the end of the day, Cape Town is more than just a top destination in Africa. The metro’s strongest scores are for cost, ease of doing business, transportation and infrastructure, as well as sustainability and the natural environment. The city also offers favourable factors when it comes to Intellectual capital and innovation, as well as health, safety and security. This has made it a popular destination for expats, remote workers and digital nomads.

The Cost of Living in Cape Town

The Mother City is home to a large international community of freelancers and entrepreneurs, as well as foreign workers. After all, once you’ve experienced the amazingly beautiful city with Table Mountain towering above it, the gorgeous beaches of Camps Bay, and the colourful houses of the Bo-Kaap, it’s hard to say goodbye to this kind of lifestyle.

It’s not surprising, as Cape Town is truly unique in that there’s a national park inside the city borders. Hiking Lion’s Head is considered a fantastic way to start the day before hitting the office. This is why the cost of living in South Africa’s most popular city may be higher than you expect too. However, Cape Town is still a much more affordable metro to live in than most European, Asian and North American cities.

When it comes to transport, Cape Town wins hands-down, offering sometimes up to 50% cheaper options on average. Eating out, beer and entertainment can be as much as 50% lower in South Africa than they are in Europe, for instance. Clothing and consumer items, on the other hand, are only marginally less expensive. In general, the cost of living in Cape Town is

• ±57% cheaper than New York
• ±55% cheaper than London
• ±46% cheaper than Paris
• ±50% cheaper than Tokyo
• ±50% cheaper than Los Angeles

Contact us today for detailed information on Cape Town’s cost-effectiveness. If you can’t find what you are looking for, we can help point you in the right direction.