Cape Town - Cape Town and the Western Cape’s official tourism, trade and investment promotion agency Wesgro helped to generate at least R17.5bn for the Cape economy during the 2016/17 financial year, creating 6 625 direct and temporary jobs.
Wesgro was an "example of a state-owned enterprise (SOE) that works," said Western Cape Minister of Economic Opportunities Alan Winde on Tuesday at a briefing on the agency's achievements during the past financial year.
"Imagine if all our SOEs in SA were run like Wesgro. It is a partnership that created a space of trust and pride, always aiming for the next level," he said.
During the financial year Wesgro's trade unit facilitated the signing of 41 business agreements with an estimated economic value of R9.04bn. These agreements created 781 jobs. The unit also facilitated outward foreign direct investment projects worth R507m.
Wesgro's investment unit, meanwhile, realised committed investments worth R2.12bn during the financial year, which translated into 700 jobs. Darvesh, based in the United Arab Emirates, for instance, invested R950m into local real estate and infrastructure projects.
As for agribusiness, the agency achieved investment projects worth R735m. The value of the destination marketing and convention bureau's work during the financial year was estimated at R428.3m.
The film unit, meanwhile, saw more than R1.56bn in production value spent declared, resulting in 3 271 full time equivalent jobs created.
Air access
Wesgro said the Cape Town Air Access team had in the past financial year contributed to 7 new routes and 10 route expansions. In total this added more than R3bn to the Western Cape economy in direct tourism spend.
The unit is a collaboration between Wesgro, the Western Cape Government, the City of Cape Town, Airports Company SA, Cape Town Tourism and SA Tourism, and is also supported by the private sector.
Wesgro said it was also focusing on the roll-out of the Cape Health Technology Park in Cape Town in response to the needs of the city's biotech industry.
Given the challenging economic climate South Africa is experiencing currently, the work done by Wesgro has become even more critical, said Wesgro chair Prof Brian Figaji.
"Wesgro has once again had a good year. We have managed to obtain greater involvement from more municipalities as well as the private sector," he said.
"The best response to any perception is taking action. We have ways in place to measure Wesgro's results as the board has to ensure money is spent in the best way for the city and the province."
Reputation building
Wesgro CEO Tim Harris said the agency had succeeded in shoring up the region's reputation as a competitive hub for business and tourism on the African continent.
Harris said part of the agency's success lay in having important business leaders on the board. Another of Wesgro's strengths was having a large number of different business units together in one space.
The agency's units include trade, investment, marketing, a convention bureau, research, corporate services, strategic projects and film.
"Wesgro provides a safe space with high trust from the private and public sector to make sure we achieve our potential as a province despite economic challenges," said Harris.
"The power of public private partnerships makes any potential so much bigger."
He said the number one investment case for the Western Cape was still based on the country as a whole, and the Cape specifically, having the best institutions and infrastructure on the African continent.
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