Advertise with fastmoving.co.za
 
 

The agribusiness sector is one of the most important components of the Western Cape economy.
The agribusiness sector is one of the most important components of the Western Cape economy.

Western Cape agribusiness sector set for growth which will in turn boost tourism

ECONOMIC NEWS

By Bekezela Phakathi - Nov 7th 2018, 08:46

The Western Cape’s agribusiness sector looks set for growth in the coming years with the province’s trade and investment promotion agency announcing that it has landed committed investments in the sector amounting to R756m.
 

This is expected to create more than 1,400 jobs over the next five years, according to Wesgro’s annual review for the 2017/18 financial year.

Wesgro is the province’s trade and investment promotion agency. US- founded Cape Town headquartered Marathon Restaurant Group, recently invested R300m in developing Pizza Hut, fast-casual restaurants in the Western Cape, creating 700 jobs.

The agribusiness sector is one of the most important components of the Western Cape economy. It lies at the heart of the region’s ability to drive economic development, contributing billions to the regional GDP, says Wesgro. The region exports 70% of all South African beverages and spirits, and 96% of its wine.

Factoring various other investment commitments in key sectors of the local economy, Wesgro said Cape Town and the Western Cape’s economy is expected to receive at least a R10,25bn boost over the next five years, helping create more than 7,900 full time and part time jobs during the period.

During the past financial year, Wesgro’s International Trade Promotion Unit facilitated the signing of 53 business agreements with an estimated economic value of R2.83bn over the next five years and is expected to create 679 jobs.

The Western Cape’s air-access strategy to create direct links with other countries is also beginning to bear fruit. The provincial economic development & tourism department developed the strategy in partnership with Wesgro, the city and Airports Company SA.

“In just three years, this initiative has helped land 13 new routes and 18 route expansions, adding an additional 750,000 inbound seats to Cape Town International Airport. These additional passengers have spent an estimated R6bn in the Cape economy. During the financial year in review, the economic impact of the project is estimated to be R2bn,” Wesgro said in its annual review.

Economic opportunities MEC Beverley Schafer said: “A few weeks ago, Wesgro launched its campaign aimed at the international investor market, with the tagline ‘a place of more’. These numbers for the 2017/18 year show that we are indeed a place of more — more jobs, more investment and more opportunities to grow the economy.”

However, Wesgro bemoaned the severe drought which hit the province during the year under review, saying it had had serious negative effect on tourism sector. The tourism sector is key for the Western Cape economy and the province is widely regarded as SA’s most attractive tourism destination. The sector contributes about 9% to SA’s GDP. The National Development Plan has earmarked tourism as one of the main drivers of economic growth and employment.

Wesgro CEO Tim Harris said the agency had launched a campaign to try to boost the sector.

“At the beginning of September #ItsAllStillHere tourism campaign was launched. Consisting of three short, shareable videos it profiles the Cape’s top surfing talent, natural beauty, and world-class surf conditions. The campaign acknowledges that although our region has suffered its worst drought in history, we have got through the crisis and our extraordinary destination is ‘all still here".
Business Live 

Related News

Economic turbulence anticipated for 2019
21/01/2019 - 10:36
SA will likely experience a slight pick-up in economic activity this year, but its economic problems are too deep-seated and its political constraints too binding to allow for meaningful economic reform and a return to rapid growth any time soon.

Black Friday boosts November’s retail sales
16/01/2019 - 14:12
Consumers came under pressure in 2018, with the first VAT hike in two decades and steep fuel price increases.

Another boost for the manufacturing sector in November
14/01/2019 - 11:09
Production from SA’s factories continued to improve in the last quarter of 2018, data from Statistics SA (Stats SA) showed.

Factory owners end 2018 in upbeat mood
09/01/2019 - 14:03
Activity in the manufacturing sector reached its best level in 2018 in December, ending the year on a strong note.

Record Christmas for Aldi as it steals customers from rivals
07/01/2019 - 14:43
New stores and demand for its premium ranges helped Aldi generate UK sales of almost £1bn in December, its best ever result for the Christmas trading period.