Western Cape attracts R171 billion in foreign direct investment

Cape Town - The Western Cape has attracted 296 Foreign Direct Investment projects, injecting more than R171 billion into the economy with Cape Town and Stellenbosch ranked among the top 20 South African cities for inward initiatives.

This is according to Premier Alan Winde, who on Wednesday said during his State of the Province Address (Sopa) that between 2021 and 2023, the Western Cape recorded 35 direct investment projects from European Union member states alone, totalling R7.37 billion.

“One of South Africa’s biggest cement companies is constructing a new R3 billion plant here. Our Red Tape Reduction Unit has so far achieved a saving of over R2.4 billion for businesses. We have over 300 000 small, micro, and medium-sized enterprises (SMMEs) in this province – these are the drivers of our economy and jobs,” said Winde.

He said with over 240 000 people employed in the agriculture sector in the Western Cape, its potential for further job creation is undeniable. Agricultural sector achievements over the past year include:

• 35 rural projects completed, creating 1 417 job opportunities and rehabilitating 31 471 hectares of agricultural land.
• Direct support for 13 red meat producers, two grain producers, and 19 black commercial farmers.
• Assistance for smallholders, subsistence farmers, and food security initiatives, helping 3 930 households establish food gardens.
• Funding for the Lower Olifants River Water Users Association to maintain 268 km of concrete-lined canals—to support approximately 840 farms in the region.
• Investing R25 million to modernise the Provincial Veterinary Laboratory Efforts to further enable tourism to grow more jobs are also paying off, Winde said.

“Tourism is a critical economic driver. The World Economic Forum estimates that for every 30 new tourists to a location, one job is created. We have, therefore, set a target of 1 million additional international tourists which will help create over 33 000 more jobs. The number of arrivals at Cape Town International Airport in December 2024 soared to their highest in 12 years as 160 537 international arrivals were recorded in just one month.

This is largely due to our Cape Town Air Access initiative. This project shows that long term work pays off. From its humble beginnings almost a decade ago, Cape Town Air Access is now flying higher than ever. This initiative between the provincial government, Wesgro, and Cape Town International Airport is further opening the Western Cape’s skies to more tourists and destinations. Seven new airlines, through 7 routes are touching down in the Western Cape, with one million inbound seats added.”

Cape Argus