Showcasing Cape Town’s positive economic sentiments at World Travel Market Africa

Today, the City of Cape Town will be participating on an international panel at the virtual World Travel Market Africa, discussing ways the African continent can work together to recover and capitalise on intra continental travel. Despite South Africa’s national economy experiencing challenges resulting from the impact of Covid-19, Cape Town has yet again shown incredible economic resilience. Read more below:

The latest Statistics South Africa’s Quarterly Labour Force Survey 2020 Quarter 4 reflect a vital increase in the number of people formally employed. This shows that the City of Cape Town is on the right track and our contribution of the economic recovery plan, aimed at response, adaptation and recovery, and stabilising the economy is gaining traction.

Similar to the national labour market performance, Cape Town’s working-age population increased on both a quarter-on-quarter and year-on-year basis.

The increases in employment for this quarter meant that the labour absorption rate increased to 48,1% from 46,9% in the previous quarter. Similarly, the labour force participation rate increased from 61% to 65% in the fourth quarter of 2020.

Formal employment (which represents the bulk of employment in Cape Town) increased by 36 000 people from the third to the fourth quarter.

‘Today, I will be participating in an international panel at the virtual World Travel Market Africa, discussing ways that the African continent can work together to recover and capitalise on intra continental travel.

‘Our resilience and our ability to end 2020 with a recorded positive employment growth will allow me to continue to champion Cape Town as the well-run city, inclusive, opportunity city that is once again open for business as the gateway to the African continent.

‘It is heartening to note that the African Development Bank, despite the challenging backdrop of a global pandemic and external economic shocks, has said the African continent stands out as one of the economies that will recover the most rapidly from the Covid-19 pandemic with a projected growth of 3.4%. (Statista, as of 8 March 2021).

‘Some of the key strategies I will be sharing with my international counterparts are our Ease of Doing Business and Business Support focus. We recognise how small and medium-sized businesses (SMEs) play a vital role in Cape Town’s economy, making up over 90% of all businesses and accounting for nearly half of private sector employment. The City is committed to ensuring the right conditions exist to allow small business to grow and thrive.

‘The City’s business brand, Invest Cape Town, will continue to stimulate and enable investment by ensuring that all economic role-players in the region speak with one voice, campaigning for Cape Town as Africa’s hub for business ideas and innovation.

‘Additionally, I will showcase the City’s dedicated Investment Facilitation unit. This team located within the Enterprise and Investment Department, focuses on the larger investments and helps navigate municipal processes and clears bottlenecks.

‘As a City, we will continue to make every effort within our means to ensure that businesses, existing and new, continue to grow and create employment,’ said the City’s Mayoral Committee Member for Economic Opportunities and Asset Management, Alderman James Vos.