In the course of the first 3 quarters of Wesgro’s financial year, over R2,2-billion in investment deals have been realised in Cape Town and the Western Cape by Wesgro’s Investment Promotion Unit (IPU). The deals are expected to create more than 850 new direct jobs over the next five years.
The IPU is comprised of the Investment Promotion team (IP), who to date has secured R1,85-billion in investments, and the Agribusiness Investment Unit (AIU) who have secured R428-million of the total R2,2-billion.
Quarter 3 – October 2018 to December 2018 – has been one of the IP’s most successful quarters of the year, with R640-million realised off the back of three investments, supporting the creation of 150 jobs. Such success is aligned to efforts of the national government to attract investment to South Africa, and is a positive indication for the future.
The past quarter saw the recruitment of 30 new investment projects into the team’s deal pipeline across the following sectors: 10 in Manufacturing; 7 in Tech; 6 in Real Estate; 2 in Oil & Gas; 2 in Business Services; 1 each in Water, Smart Meters, and Solar-heating. Currently, the Wesgro Investment Promotion Unit oversees a deal pipeline amounting to more than R28-billion in corporate fixed investment projects that are being considered for the Province.
Other highlights included the team undertaking 6 outward missions to promote investment opportunities to investors and businesses in Germany, Saudi Arabia, UAE, Indonesia, Japan and Qatar. Engagements hosted in the various markets focused on a broad range of sectors, with a total of 69 companies and organisations engaged with during the missions undertaken.
In an effort to promote Foreign Direct Investment into the Province, 22 inbound business delegations were hosted during the quarter under review, including 5 from China, 3 from Hong Kong, 3 from Austria, 2 from Germany and 1 each from Belgium, Canada, France, Japan, Norway, Philippines, Portugal, Sweden and Switzerland.
Assisting the Unit with investment facilitation and enhancing the ease of doing business in the Cape is the InvestSA One Stop Shop (OSS). Housed within the Cape Investor Centre (CIC), the OSS is a collaboration of various arms of national and provincial and local government who endeavour to assist investors with circumventing regulatory and administrative bottlenecks.
Based on a robust operating model, Wesgro’s CIC was able to assist with 4 regulatory enquiries at an average turnaround time of 1,5 working days. Their assistance has assisted the IP team in securing deals in excess of R700-million during the 2018/19 financial year to date.
The Centre is also strategically positioned to be the first point of entry for multinational corporations seeking to invest in the Cape. As such, the CIC hosted 6 inward missions that originated from Wesgro’s investment target markets; and 11 workshops and conferences in order to solidify the region’s investment brand in global markets during the period under review.
Congratulating the team on their efforts, Wesgro CEO, Tim Harris, commented: “These figures show the tremendous work that Wesgro and our partners in government have put into marketing the province as a world class destination to do business. The results prove that there is more to Cape Town and the Western Cape than meets the eye – we are a beautiful place to visit on holiday, but we are also a top business destination, and an economic powerhouse on the African continent. We look forward to seeing these figures grown in the final quarter of this financial year.”
Minister of Economic Opportunities, Beverly Schafer, said: “Investment is central to helping the Western Cape grow its economy and create new jobs and these figures reflect the opportunities available in the province to investors, as well as the excellent work done by Wesgro to market these opportunities. Our primary goal as the Western Cape government is to create new jobs, and these deals will help to create 876 new work opportunities over the next five years.”
Executive Mayor, Dan Palto added: “I would like to commend Wesgro and all our partners on this success as increased investment in Cape Town means an increase in job creation and skills development opportunities for our communities. Cape Town is fast becoming the place to do business in Africa and these figures further reinforce this sentiment.”
“Cape Town and the Western Cape provides and enabling environment for potential investors and a plethora of investment opportunities across a multitude of sectors. The results secured to date are an indication of the strong investment proposition on offer in our Province. It will be a key objective of the City of Cape Town and local government to continue to drive foreign direct investment with the aim of boosting our local economy and creating much needed job opportunities,” added Mayoral Committee Member for Economic Opportunities and Asset Management, Alderman James Vos.