Share

Hope Cape Town can shine despite SA downgrade

Cape Town - The City of Cape Town still has the highest possible level of credit quality from ratings agency Moody's within the national context, Wesgro said in the wake of the downgrade by S&P of the country's foreign currency debt to "junk status".

S&P cited political and policy instability as the key motivation for the downgrade.

Cape Town was ranked 21st for its foreign direct investment (FDI) strategy by fDi Intelligence’s Global Cities of the Future 2016/17 and is the only African city listed in this category. Sectors with a competitive advantage for attracting global FDI are real estate, non-automotive transport and food and tobacco.

Wesgro, the official tourism, trade and investment promotion agency for Cape Town and the Western Cape, said it is working to keep trade and investment in the Cape following the downgrade and will remind existing and potential investors "that politics and policy within our province remain stable".

READ: Junk downgrade highlights risks to economy - report

“In light of this downgrade, we will redouble our efforts to present the Cape as Africa’s trade and investment springboard by embarking on over 70 tourism, trade and investment promotion missions over the next financial year to land even more investment,” said Wesgro CEO Tim Harris.
 
In the second half of this year Wesgro will open the Cape Investor Centre, a new one-stop shop where large investors can easily complete local, provincial and national regulatory processes in a single location facilitated by Wesgro.
 
A recent Wesgro survey examined the perspective and experience of companies that have recently invested in the Cape. Three quarters of companies surveyed had a positive perception of Cape Town as a base to do business in Africa. They noted the city's sophisticated infrastructure as a draw card.

Of the companies that intended to expand into Africa, a quarter indicated they would opt to run their African regional headquarters in Cape Town.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.00
-0.5%
Rand - Pound
24.02
-0.5%
Rand - Euro
20.51
-0.2%
Rand - Aus dollar
12.35
-0.0%
Rand - Yen
0.13
-0.6%
Platinum
900.15
+0.4%
Palladium
1,000.00
-0.2%
Gold
2,210.45
+0.7%
Silver
24.60
-0.2%
Brent Crude
86.09
-0.2%
Top 40
68,142
+0.7%
All Share
74,329
+0.6%
Resource 10
56,957
+2.3%
Industrial 25
103,635
+0.4%
Financial 15
16,485
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders