5 years ago

Western Cape Business 2018 edition

  • Text
  • Nedbank
  • Sectors
  • Growth
  • Finance
  • Government
  • Africa
  • Management
  • Infrastructure
  • Transport
  • Opportunities
  • Energy
  • Development
  • Wesgro
  • Vodacom
  • Investment
  • Cape
  • Business
  • Tourism
  • Economic
  • Municipality
The 2018 edition of Western Cape Business is the 11th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the growth of tourism (spurred by an innovative programme designed to create more direct flights to Cape Town), medical technology as a growth sector and the pursuit of excellence that drives the Cape Winemakers Guild. The journal contains a message from Alan Winde, Minister of Economic Opportunities, and contributions from significant business leaders from Accelerate Cape Town, the Cape Chamber of Commerce and the Western Cape Business Opportunities Forum. An interview with Tim Harris, Wesgro’s CEO, reveals some of the recipe for the province’s economic success. Updated information on the Western Cape is also available through our monthly e-newsletter, which you can subscribe to online at, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

Welcome to the

Welcome to the Cape Winelands The Cape Winelands District is situated in the Western Cape Province and is the second largest centre of economic activity in the province after the City of Cape Town. The region is famous for its spectacular scenery of beautiful mountains, valleys, as well as wine and fruit estates which attract local and foreign tourists. The region comprises of an area over 22 309 square kilometres, population growth is estimated at 10% between 2011 and 2016 while economic growth averaged 2.9% from 2011 to 2015. Local municipalities The district has five local municipalities with a population of 863 000: Stellenbosch, Drakenstein, Witzenberg, Breede Valley and Langeberg. Drakenstein contributed the most to the Gross Domestic Product per Region, 32.8% in 2016 followed by Stellenbosch 24.0%, Breede Valley 19.1%. Witzenberg 13.9% and Langeberg 10.2%. There are major developments in the major towns such as Paarl and Stellenbosch to diversify the economy to maximise opportunities. Towns such as Ceres, Worcester and Robertson also offer prospects for investors . The economy The Cape Winelands has a strong agri-processing industry, which comprises more than a quarter of all agri-processing in the Western Cape. Economic activity is diverse, with tourism, agriculture, manufacturing and a growing financial services sector all featuring. Nearly one third (31%) of the province’s agricultural products are produced in the Cape Winelands as is about 70% of South Africa’s wine. A good percentage of this wine is exported and the wine estates themselves attract tourists with wine tasting and restaurants. Manufacturing is mainly concentrated on processing grapes and fruit into wine, juice, brandy, as well as dried and tinned fruit products. Dairy manufacturing, rose farming and thoroughbred horses are also present in the region. The tourism sector has been identified as a growing sector for the Cape Winelands region in different niches such as sports tourism, business tourism, etc. Strategies and policies are being put in place to maximise the potential for the tourism industry. The Cape Winelands District has a comparative advantage in the agriculture, forestry and fishing, construction, wholesale and retail trade, catering and accommodation, community, social and personal services sectors. The economy also benefits from niche activities that are spin-offs of agri-processing. These include wine tourism, the branding of the district as the “Foodie Capital, linked to food processing as well as the presence of internationally acclaimed restaurants. These niche activities are predominantly in the Stellenbosch, Paarl and Franschhoek areas.

Key economic sectors The economic sectors that contributed the most to the CWD’s economy in 2015 were: • Finance, insurance, real estate and business services 23 % • Manufacturing 15.7% • Wholesale and retail trade, catering and accommodation 19.7%. An investment destination Cape Winelands has the following strengths and advantages which enable it to stimulate growth and expansion of the regional economy; • a developed road and rail network that provide local businesses with easy access • easy access to Cape Town International Airports and the Port of Cape Town • a diverse choice of urban and rural sites throughout the district • educational institutions and centres for research excellence such as University of Stellenbosch and Agricultural Research Council • nationally and internationally renowned special educational institutions • the quality of life: The Cape Winelands is one of the most visited regions for domestic and international tourists. CWDM Economic Development Programmes The Cape Winelands District Municipality is responsible for formulating strategic policies and developmental initiatives that will stimulate economic development. Several programmes are currently being implemented: Business Support and Mentorship In 2005 the Cape Winelands has established an Entrepreneurial Seed Fund and Small-Scale Farmers Programme which provides grant funding in the form of procuring equipment on behalf of the SMME. The Programme aims to address poverty, diversify the local economy, broaden income opportunities and enable small, medium and micro enterprises to participate in the economy. The business mentoring focuses on the following areas; coaching and mentorship, business process establishment and documentation, sales and marketing and financial systems and legal advice. The mentorship is based on an individual SMME needs assessment. Business Retention and Expansion Through the Business Retention and Expansion (BRE) programme, the municipality demonstrates its commitment to the importance of issues facing existing businesses given that these businesses comprise the economic base in land use, capital formation and employment opportunities that shape the foundation for future growth. Priority is given to BRE tourism projects focusing on identified tourism niches (family friendly, sport and outdoor and accessible tourism). CWDM intend to act as a catalyst for developing these tourism niches. It is estimated that between 60% to 80% of all new jobs is created by existing businesses. Tourism Mobile Apps The CWDM has developed mobile apps for 14 of its towns in collaboration with the local municipalities, local tourism associations and business. The apps were launched on 22 March 2017. The Apps are on iOs and Android (Samsung mobile application) and connects the Tourism Association and its business members in such a way that businesses can download the mobile application from the application store, claim their businesses and upload the local content to its profile. The aim is to engage stakeholders, including those seeking tourism promotions and events, and to develop a collaborative network between tourism operators, businesses, the local tourism associations and the CWDM. A separate Cape Winelands District (CWD Tourism) App has been developed. This focusses on routes, attractions and events.

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