Cape Town lives up to its title: Tech Capital of Africa

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

Cape Town will this week be hosting the AfricaArena Summit 2019 and Africacom Networking Event 2019. I have the pleasure of opening both these prestigious sector events.

Our support for these events forms part of our strategy to build on and drive the narrative of being the tech capital of Africa as these conferences showcase Africa’s best on global platforms.

I am proud to mention that we have maintained our ranking as the tech start-up hub of Africa over the past year.

We are actively calling on entrepreneurs to make Cape Town their base. A study commissioned by Price Waterhouse Coopers in 2015 showed that of the 742 emerging tech, or tech-enabled companies, 56% have their head offices in the Western Cape. The majority of which are based in Cape Town. Similarly, the 2015 Ventureburn Survey found that 59% of start-ups are based in the Western Cape.

The concentration of these companies in Cape Town is reflected in the fact that the Western Cape hosted 75% of venture capital deals in 2015.

The AfricaArena Summit is an annual conference that showcases the African continents best start-ups and innovators in front of an audience of local and international investors looking for world-class talent. The event includes representatives from 32 countries bringing together 550 delegates, 50 speakers and 75 start-ups.

The City of Cape Town has been a proud host and supporter of AfricaArena since its inception in 2017.

The AfricaCom networking event for the African telecoms and technology sector, will bring together 15 000 attendees, 450 speakers and 500 exhibitors. The key focus of this event is on connectivity infrastructure, disruptive technologies, digital services and ICT strategy.

Cape Town has established itself as a key technology hub in South Africa and beyond with several major companies launching their head offices in the city. The perception that software developers are more progressive attracts other business operations, and in turn, creates an environment of innovation, digital connectivity and opportunity.

As part of its Enterprise and Investment mandate, the City funds and supports special-purpose vehicles (SPVs) to drive growth and job creation in strategic (catalytic) sectors of the economy.

One of the entities funded by my department that operates in the tech space specifically is the Cape Innovation Technology Initiative (CiTi). The organisation is responsible for the growth and development of the ICT industry in Cape Town.

The region is also home to the top universities on the continent, providing unrivalled access to Africa’s brightest young minds, offering a steady pipeline of skilled industry professionals.

Analysis by Endeavor Insight indicates that the Cape Town tech sector includes between 450 and 550 entrepreneurial companies working in software development, e-commerce, and fintech. Cape Town has produced multiple firms known for their innovative breakthroughs, and as a result, these firms have a strong global presence.

We are committed to growing Cape Town’s tech sector. Throughout the 2018/19 financial year, Cape Town has maintained the lowest unemployment rate of all the metros.