Western Cape Business 2020 edition

SPECIAL FEATURE
Economy
Finance, business services and real estate
combined contribute 28% to the Gross
Domestic Product (GDP) of the Western Cape.
The financial services and insurance sectors
are key components of the economy. Many of
South Africa’s biggest companies have their
headquarters in Cape Town. Asset management
and venture capital companies have been
growing steadily.
Although agriculture only accounts for 4.3%
of GDP on its own, the sector is responsible for
the fruit and vegetables that contribute to agriprocessing
which accounts for nearly 40% of
the province’s export basket. (Agri-processing
accounts for 8.1% of GDP.) Citrus, wine, apples
and pears, grapes, fruit juice, fruit and nuts and
tobacco all appear in the top 10 of the province’s
exports. Seventy percent of South Africa’s
beverage exports come from the Western Cape.
Grapes and wine sales to Europe remain very
strong but the Chinese market is becoming
increasingly important.
The province has a diverse manufacturing
sector ranging from textiles, clothing, footwear
and furniture to coke and refined petroleum
products. Excluding agri-processing, other
manufacturing makes up 6.9% of GDP.
Regions
The province is divided into one metropolitan
municipality and five district municipalities:
Cape Town Metropolitan Municipality
Cape Town is a culturally diverse and dynamic
metropolis set among beautiful beaches and
winelands with the spectacular Table Mountain as
a backdrop. The city is the engine of the regional
economy, with most of the Western Cape’s
heavy and medium industry located within the
metropolitan area of Cape Town.
The largest sector in the city’s economy is
the financial and business services industry.
The opening of a branch of the JSE in the city
is a sign that this sector continues to grow, as is
the decision of more asset managers to move
their headquarters to Cape Town. The tourism,
retail, construction and property sectors have
been doing well for many years. The city has a
population of 3.2-million and contributes 76% of
the Regional Gross Domestic Product.
Cape Town is home to the nation’s parliament
and is the site of two World Heritage Sites: the
Cape Floral Region (including Table Mountain)
and Robben Island. The Cape comprises only half
a percent of the landmass of Africa yet the Cape
Floral Region accounts for nearly 20% of the flora
17 WESTERN CAPE BUSINESS 2020