Western Cape agribusiness to get R756m investment boost
The Western Cape’s agribusiness sector looks set for growth in the coming years with the province’s trade and investment promotion agency announcing it has landed committed investments in the sector amounting to R756m.
This is expected to create more than 1,400 jobs over the next five years, according to Wesgro’s annual review for the 2017/18 financial year. Wesgro is the province’s trade and investment promotion agency.
The agribusiness sector is at the heart of the region’s ability to drive economic development, contributing billions to the regional GDP, says Wesgro.
The region exports 70% of SA beverages and spirits, and 96% of its wine.
Factoring various other investment commitments in key sectors of the local economy, Wesgro said Cape Town and the Western Cape’s economy is expected to receive a boost of at least R10.25bn over the next five years, helping create more than 7,900 jobs during the period.
During the past financial year Wesgro’s International Trade Promotion Unit facilitated the signing of 53 business agreements with an estimated economic value of R2.83bn over the next five years, and is expected to create 679 jobs.
US-founded, Cape Town head quartered Marathon Restaurant Group recently invested R300m in developing Pizza Hut fast-casual restaurants in the Western Cape, creating 700 jobs.
The Western Cape’s air-access strategy to create direct links with other countries is also beginning to bear fruit.
“In just three years, this initiative has helped land 13 new routes and 18 route expansions, adding an additional 750,000 inbound seats to Cape Town International Airport. These additional passengers have spent an estimated R6bn in the Cape economy. During the financial year in review the economic impact of the project is estimated to be R2bn,” Wesgro said in its annual review.
Economic opportunities MEC Beverley Schafer said: “A few weeks ago, Wesgro launched its campaign aimed at the international investor market, with the tagline ‘A place of more’. These numbers … show we are indeed a place of more — more jobs, more investment and more opportunities to grow the economy.”
However, Wesgro bemoaned the severe drought that hit the province during the year under review, saying it had serious negative effects on tourism, which is key for the Western Cape economy. The province is widely regarded as SA’s most attractive tourism destination and contributes about 9% to SA’s GDP. The National Development Plan has earmarked tourism as one of the main drivers of economic growth and employment.
Wesgro CEO Tim Harris said the agency had launched a campaign to try to boost the sector.