Cape Town’s economy is well placed for recovery
It has been a devastating year for the world. The economic, social and health impacts wrought by the global Covid-19 pandemic will reverberate for years to come.
In Cape Town, the city had just emerged from an incredibly difficult 2019, with stakeholders and investors having to cope with the aftermath of the 2018 drought and subsequent water crisis, continuing load-shedding and a tough economic climate.
Yet, despite these devastating circumstances, the resilience of Cape Town’s central business district has been quite remarkable.
The economic performance of what is arguably SA’s most successful CBD means it is well placed to navigate a path to recovery.
“The State of Cape Town Central City Report 2019 — A Year in Review”, published annually by the Cape Town Central City Improvement District (CCID), reflects the bigger picture of what drives the CBD’s economy.
In 2019, the value of central city property as reflected in the City of Cape Town’s 2018/2019 property evaluation was R44.1bn underpinning the inner city’s buoyancy.
Much has been written about the coronavirus’s impact on cities, economies, the environment and people.
However, Cape Town’s approach has been one of optimism focused on new urbanism and four key economies central to the CBD’s success: art, visitors, night-time and knowledge and eventing.
Central to the CBD’s success is the worldclass Cape Town International Convention Centre, which contributed R4.5bn to the Western Cape’s gross geographic product in 2018/2019 and continues to be a key driver to the central city’s economies.
The Foreshore precinct has become a key property investment node, ripe for the increased demand for downtown living — despite a sluggish housing market.
The city’s desirability has not dropped either, with developers reimagining mixeduse spaces and “apart-hotels” where homeowners can live, work and play while being assured of safety and easy access to work.
And where living ends, entertainment begins. The CBD’s creative economy has grown over the past few years, with the CBD hosting the Cape Town International Jazz Festival, Design Indaba and the Investec Cape Town Art Fair.
The financial contribution of this creative sector has been undeniable and feeds into the visitor and knowledge and eventing economies.
A total of 430,000 people attended 111 official events in public spaces in the central city during 2018, according to the City of Cape Town’s events office.
These economies, especially eventing, continue to expand each year, helping to drive business into the region.
With SA’s provincial borders now open and more domestic travellers pursuing the laid-back holidays only Cape Town can offer, the central city is preparing for a different summer season than in years past.
Though the economy remains tight, there is a growing awareness of the potential of the CBD’s night-time economy.
This remains an unexplored resource that could provide key nodes in social and economic development for Cape Town.
As we near the end of 2020, there are very encouraging signs that the Cape Town central city is returning to its former pre-Covid19 vibrancy.
The CCID has embarked on an extensive Come Back To Town campaign to drive footfall back into the economic heart of the city, and I am convinced that we will be able to use the knowledge of our previous triumphs to come out stronger than ever before, postpandemic.
I am convinced we’ll be able to come out stronger than before, post-pandemic
Rob Kane
Chair, Cape Town Central City Improvement District