City becoming a manufacturing hub

Food and beverage sector ‘well placed to exploit export opportunities’

CAPE Town is fast-becoming a hub for the manufacturing sector, making it an important earner of foreign exchange for the city. The city’s deputy mayor, Ian Neilson, said yesterday that Cape Town boasted some of the largest food and beverage manufacturers in South Africa.

According to the City’s economic indicators report for the fourth quarter of last year, manufacturing has become an important earner of foreign exchange for the city.

He said the city’s proximity to a vast agricultural hinterland, harbour, growing consumer population and relatively strong skills base made it a competitive location.

“The City has set itself the goal of establishing Cape Town as a forward-looking, globally competitive business city,” Neilson said.

“We will continue to build an enabling environment for economic growth and job creation, and foster a climate that is conducive for doing business in the city.”

He said exports by the food- and beverage-manufacturing industry have grown strongly over the past five years.

“This industry is also well placed to exploit the export opportunities that can be gained by a weak exchange rate. Additionally, the sector boasts the fastest-growing employment rate of all the manufacturing industries.”

Neilson said the report showed that food and beverages was the largest manufacturing sector by output, recording the highest growth rate –3% – in gross value add and employment – 4.9% – over 10 years.

He said it showed that employment in the sector grew 6.1% year-on-year for the second quarter of last year, and that Atlantis was home to one of only three wheat-biscuit factories in the world.

“The city is also the base of a strong cluster of spice and saucing companies, and is where the headquarters and main production facilities of South Africa’s largest seafood companies are located,” he said.

Cape Town is home to two of the largest craft beer companies in the country and to one of the two licence-holders for the bottling and distribution of Coca-Cola products in South Africa. A number of soft-drink producers have based their operations in the city.

The report showed that, between 2015 and last year, beverage exports from Cape Town grew 21% and fish exports 22.7%.

“There is a lot of scope for our food and beverage manufacturers to tap into the increasing demand for diversified, value-added food and beverage products,” Neilson said.