Tag Archive for: Economic Development

Andrew Stegmann
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COVID Resurgence the Biggest Threat to Economic Recovery, Says SA President Ramaphosa

President Cyril Ramaphosa says that South Africa’s 13.5% rebound in GDP during the third quarter of 2020 shows that a strong recovery is possible, even as the economy remains below its pre-pandemic levels.

However, he warned that a second coronavirus wave in the country could derail recovery efforts.

Commenting on the data released by Stats SA on Tuesday (8 December), the president said that GDP growth in the third quarter surpassed even the most optimistic market expectations.

This coincided with a surprisingly swift increase in economic activity as most restrictions designed to contain the spread of Covid-19 were lifted, he said.

Gross fixed capital formation also increased at a rate of 26.5%. While GDP contracted 6% year-on-year, the strong increase from the second quarter suggests that the economy is recovering more quickly than expected.

“In recent months, encouraging green shoots have emerged which provide a foundation for economic reconstruction and recovery.

“The mining and agriculture sectors in particular have demonstrated robust growth in the context of favourable market conditions. As a result of large trade surpluses, a record current account surplus is anticipated.”

The president said that a strong recovery in economic activity was made possible by the country’s success in bringing the virus under control.

“The strong rebound in GDP growth for the third quarter provides support for the approach that we have taken both to confront the pandemic and to protect the economy.

“Our task now is to ensure that this momentum is sustained, to enable a full recovery of the economy.

“A resurgence of the virus is now the single most serious threat to the economic recovery that is underway. As we move into celebrating the festive season and spending time with our families, we must remain vigilant to prevent a second wave.”

The president called on all South Africans to wear a mask, keep a safe distance from others, avoid crowded or poorly ventilated spaces and wash hands regularly.

“These simple measures are necessary not only to protect ourselves and others, but to support the continued recovery of the economy,” he said.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
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Cape Town Launches Free Electric Car Charging Station

The City of Cape Town has launched its first public electric vehicle (EV) charging station, situated in the parking area of the Bellville Civic Centre.

This is the first of two solar-powered EV charging stations that will be offered free-of-charge for the first two years to members of the public, the city said.

The sites were chosen because of their convenient, safe and visible locations and the chargers were donated by the United Nations Industrial Development Organisation (UNIDO).

“Transport is the second biggest contributor to the carbon intensity of Cape Town’s economy. This is exacerbated by urban sprawl and the long distances freight has to travel over a country as large as South Africa.

“Increased congestion and inefficiencies not only increase the city’s transport-related greenhouse gas emissions (GHGs), largely driving climate change, they worsen air quality and contribute to adverse health impacts on residents,” the city said.

How it works:

  • A motorist with an EV drives up to the charging station. Depending on the car, reversing into the space may provide the best access to the charger;
  • Limitless charging is offered and the car’s charge card will be required to start the charge;
  • Using their own cable, users will connect the cable to the charger and then to the car. This initiates the charge. Users can then simply lock their car and attend to other business. The system will be secure and the cable cannot be released. Unlocking the car will stop the charge and release the cable;
  • The length of charge required will depend on the car and charge cable. But it takes roughly three hours to charge the battery from close to 0% to 80% for this particular 22 kW Dual AC charger;
  • How long a charge lasts will depend on the car and driving style. A three-hour charge can last roughly 150km depending on which vehicle one uses;
  • The charging stations will be closed at night.

“The Covid-19 pandemic has highlighted the devastating economic impact that global crises can have and has shown that planning for climate resilience and reducing emissions is increasingly important,” said the city’s Phindile Maxiti.

“This kind of proactive response to climate change will also assist our city’s recovery from the COVID-19 pandemic as the green economy offers new opportunities for businesses and jobseekers.

“It also helps to ensure that the local economy can continue to trade competitively in a global world that is rapidly rejecting carbon-intensive goods and services.”

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
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2019 State of Cape Town Central City Report Launched

Published recently, by the Cape Town Central City Improvement District (CCID), the report noted that the Central City “held its own quite remarkably” in the year under review, despite 2019 being “incredibly difficult”, according to CCID board chairperson Rob Kane.

Says Kane: “Stakeholders and investors in the CBD have had to cope with the aftermath of the 2018 drought and subsequent water crisis, ongoing load shedding and a tough economic climate.”

Five-part section on on ‘Surviving Covid-19’

Though the coronavirus pandemic falls beyond the ambit of the SCCR report, a five-part section of the report is devoted to reflections on “Surviving Covid-19” by Wesgro CEO Tim Harris, Economic Development Partnership CEO Andrew Boraine, HTI Consulting CEO Wayne Troughton and economist Brian Kantor of Investec Wealth and Investment and Arthur Kamp, chief economist, Sanlam Investments.

Kane acknowledges the “global devastation” Covid-19 has caused, noting that it “has damaged the Central City’s economy”, but its economic performance means the Central City is well-placed to navigate a path to recovery.

Property evaluation

The SCCR report shows that, according to the City of Cape Town’s 2018/2019 property evaluation, the value of Central City property stands at R44.124bn, and that the total value of property investments in the Central City – recently completed, under construction, proposed or planned – is R13.83bn.

This is broken down into:

  • R1,045,000,000 – A conservative estimate of the value of property completed in the Central City during 2019 but which still has to be officially assessed by the City of Cape Town (seven projects);
  • R3,730,000,000 – The value of property, conservatively estimated, that is under construction (14 projects);
  • R5,196,000,000 – The value of property, conservatively estimated, that is currently in the planning phase (11 projects); and
  • R3,860,000,000 – The value of property, conservatively estimated, that is currently proposed and is expected to begin construction within the next two years (six projects).

The Foreshore precinct has emerged as a key property investment node which is due, in part, to the expansion in 2018 of the Cape Town International Convention Centre (CTICC), which achieved a turnover of R277m in 2018/2019. “This world-class venue, which contributed R4.5bn to the Western Cape GGP, was a key driver in 2019 of the Central City’s visitor economy as well as its knowledge and eventing economy, all of which continued to expand in 2019.”

The eighth edition of the SCCR reflects on the bigger picture of the economy of the Central City, looking at property trends, occupancy rates of commercial and residential buildings, retail vacancies, the prominent economies of the Central City and trends in commercial and residential markets.

Among other key findings in the report are that:

For the third consecutive year, Cape Town had the lowest overall vacancy rate of 7. % of the country’s five largest metros. According to the SAPOA Office Vacancy Report (Q4 2019), the city’s vacancy rate compares very favourably to that of Johannesburg (12.5%) and is well below the national office vacancy rate of 11%.

The Central City vacancy rate has continued its gradual decline from a peak of 11.8% at the end of 2018 to 10.8% at the end of 2019 – a decline of 15,127m2 of space available for rent. This is at least partially attributable to the reduction in office space due to redevelopment during 2019.

A new urbanism trend gained traction in South Africa in 2019 in spite of a sluggish housing market, increasing demand for downtown living in the Central City. This has prompted the re-imagining of precincts in the Central City by developers into spaces where homeowners can live, work and play in areas that provide a safe and secure environment with easy access to work. With affordability a major issue for many young professionals, developers are responding with a growing number of studio apartments and co-living units within mixed-use developments. In 2019, small apartments with shared amenities officially became hot property, giving first-time buyers the opportunity to enter the housing market in a desirable city centre.

In 2019, the Central City residential market finally felt the effects of the economic and political headwinds which have dampened activity in the national and regional housing markets in recent years. The distribution of sales across the various price bands was similar to that seen in 2018, with the largest number of sales recorded in the R30,000 – R39,000/m2 category. No sales were recorded in the top price bracket (more than R60,000/m2) last year, while two sales were recorded in 2018.

The report includes separate sections providing a detailed look at key elements of the Central City economy, including:

  • The Art Economy: With Cape Town firmly established as the art capital of Africa, the financial contribution of the creative sector to the Central City economy is undeniable;
  • The Visitor Economy: With three new hotels opening in the Central City in 2019, several mixed-use developments and aparthotels either being constructed or in the pipeline, the CBD’s multi-layered visitor economy continued to expand in spite of a tight economy;
  • The Night-time Economy: There is growing awareness of the potential of the Central City’s night-time economy, but it remains an unexplored resource. A recent research partnership between the City of Cape Town, the CCID and the University of Cape Town will provide a better understanding of the night-time economy of the Central City and how to better use the night as a resource for social and economic development; and
  • The Knowledge and Eventing Economy: The Central City’s knowledge and eventing economy continues to expand every year, driving business into the region as local and international visitors and business tourists stream into the CBD to attend official events and conventions in and around the public spaces in downtown Cape Town.

The report also features a detailed analysis of residential and commercial rentals, and highlights from the CCID’s residential and retail surveys.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
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AfricaCom 2020 Registrations Officially Open

Virtual Africa Tech Festival will be taking place from 9 – 13 November 2020, bringing together AfricaCom, AfricaTech, The AHUB, and the AfricaCom Awards.

Join Africa’s digital thought-leaders as they discuss and debate the key issues impacting the journey to the Fourth Industrial Revolution, the response to COVID-19, connecting the next billion and more.

Your virtual ticket gives access to the entire online event including both the AfricaCom and the AfricaTech exhibitions and the AHUB start-up zone. You can expect:

  • A digital experience featuring broadcast-quality, free content streaming
  • Access to the Africa Tech Festival Headline Keynotes, AfricaTech Centre Stage and the AHUB
  • AfricaCom and AfricaTech virtual expo with virtual booths

To get your virtual ticket, click here. And for more information about the event, click here.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].