Economy

Africa’s third-largest economic hub. A city of opportunity, scale and resilience.

Cape Town is South Africa’s oldest city, its second most populous, and one of the country’s most powerful economic engines. It serves as the legislative capital of South Africa, the administrative and commercial centre of the Western Cape, and a strategic base for doing business across Africa and beyond.

The city contributes approximately 10% of South Africa’s gross domestic product (GDP) and accounts for over 72% of the Western Cape’s economic activity. Its economy is diverse, modern and service-driven – anchored in financial and business services, manufacturing, tourism, technology, and trade.

A Diversified, Growth-Focused Economy

Cape Town’s top-performing sectors include:

• Finance, insurance, real estate and business services – driving a third of the region’s GDP

• Wholesale and retail trade, catering and accommodation – underpinned by robust tourism

• Manufacturing and agri-processing – supported by strong regional linkages and logistics

The city also plays a central role in the national business services and technology ecosystem, with hundreds of start-ups and established firms operating across fintech, healthtech, BPO and software development. Over the past decade, Cape Town has become known as Africa’s tech capital, with a rapidly expanding innovation corridor and global investor interest.

In the past ten years, the Cape Town region has attracted over R139 billion in foreign direct investment, creating thousands of sustainable jobs and positioning the metro as one of the continent’s most resilient urban economies.

Why Businesses Choose Cape Town

Cape Town offers a compelling combination of infrastructure, talent and lifestyle:

• A globally connected city: South Africa’s second-busiest container port and international airport

• An educated, multilingual workforce: Home to three major universities, including the top-ranked in Africa

• Strong infrastructure investment: Over R6 billion per year committed to roads, transport, energy and services

• Growing population and customer base: Cape Town remains a top destination for internal migration and business expansion

• Vibrant innovation and research ecosystem: Including hubs for biotech, design, green economy and film

• Global appeal: A scenic, culturally rich city that attracts skilled professionals and high-value tourism

The city also services a broad agricultural hinterland, acting as a key processing, trade and distribution centre for agri-products, wine, perishables and agri-tech solutions.