Cape Town CBD outpaces national peers in economic resilience

Cape Town has outperformed other CBDs in terms of growth in the number of establishments over the past eleven years, according to a report published last month by a City of Cape Town Economic Analysis Team.  

While Johannesburg recorded a 13% decrease in the number of establishments over the period, Cape Town saw an 11% increase.

The data suggests Cape Town’s Central Business District (CBD) continues to broadly outperform other major South African metropolitan centres in post-pandemic economic recovery and long-term stability. Cape Town CBD is the most successful at sustaining employment and business density compared to the other major cities, the report says.

Cape Town has the second-highest number of jobs in its CBD after Johannesburg (reflecting Johannesburg’s larger population). But as a percentage of total employment in each municipality, Cape Town’s CBD is second only to Durban.  

Unlike other urban centres which have struggled with decentralisation and infrastructure decay, the Cape Town CBD has maintained a robust trajectory of investment, the report says. Other key findings include:

Employment Resilience: Cape Town’s CBD has shown a higher rate of employment retention and growth in high-value sectors such as finance, tech, and the creative industries compared to its inland counterparts.

Business Establishment Density: The area remains a primary hub for new business registrations, benefiting from a "performance-linked" approach to municipal service delivery that ensures reliable electricity and water infrastructure.

Diversified Economy: Unlike other CBDs that rely heavily on single-sector dominance, Cape Town’s core is supported by a mix of tourism, formal retail, and professional services.

“Looking at the data, it is clear that Cape Town’s CBD is outperforming the CBDs of other major cities in South Africa,” the report notes.  

“It has stronger jobs growth, resilient employment in service- and knowledge-oriented industry, and a large number of micro establishments. Part of this success is attributed to the work of the Central City Improvement District (CCID), a public-private partnership with the City to enhance and supplement public services in the CBD. 

The CCID’s State of Cape Town Central City Report 2024 attests to the economic strength of the CBD, with extremely low vacancy rates, numerous projects under construction, and a large amount of commercial space leased.”