WORLD CUP EDITION l www.businesscpt.com Cape T wn means 08 24 Cape Town on the up The Business of Sport as Regeneration Takes Of EDITORIAL 1 Contents Welcome to Cape Town Welcome to the City of Cape Town, proud custodian of South Africa’s most beautiful city. It gives me great pleasure to welcome the inaugural 02 The Thermometer of Business CPT business publication of BUSINESS CPT, a multi- sectoral business magazine dedicated to Cape Town 04 Doing Business in Cape Town and its beautiful surroundings. 08 The Business of Sport I am proud to inform you of the City of Cape Town’s 16 strategy of infrastructure-led economic growth to boost Wesgro Cape Town’s position as a globally competitive city. 20 Our aim is to further increase the city’s ability to attract Accelerate Cape Town investors and skilled workers based on its productivity, growing economy and efficient transport networks. 24 Cape Town on the up as regeneration takes of This will create jobs, and in so doing transform lives, particularly those of the poor. 28 Cape Town Regional Chamber of Commerce and Industry 32 CPT International Airport By getting the basics right we will position Cape Town as Africa’s leading city and a leading international 36 Cape Film Commission investment and tourism centre. Development will flourish and we will be well on our way towards creating an 38 Cape Town & Barcelona equitable, safe and enabling environment in which our citizens can thrive. The City has a adopted a vision to 46 Entrepreneurship make Cape Town a leading enabler of entrepreneurship on the African continent. 48 Black Empowerment We are confident that we can achieve our aims. Cape 54 Farmsecure Town is alive with possibility, and we have realistic and achievable plans to maximise the city’s potential. 56 Global Icons 59 The F Word We are laying the foundations for a very bright future, and I look forward to the challenge. 62 Distribution Directory 68 Calendar of Events Executive Mayor Alderman Dan Plato BUSINESSCPT l www.businesscpt.com 2 THE BUSINESS CPT THERMOMETER 2 ThermoTHE BUSINESS CPTmeter During President Jacob Zuma’s recent visit to the UK (March), the two countries laid out plans to double trade in the coming years, aiming to restore trade to the level it was at before the global economic crisis. Before the South African wine crisis, trade sales in the UK have volume overtaken French wine between the sales for the frst time, UK and South making South Africa the Africa stood at United Kingdom’s fourth around R79 billion largest wine supplier. (7.9 billion Euros). Due to the current fnancial climate, trade According to the latest fgures from analysts has slowed down considerably and AC Nielsen, South African wine sales stood trade levels have fallen to around at 12,270,000 12 bottle cases between R40 billion (4 billion Euros). January 2009 and January 2010, up by 20% on the 2008 – 2009 period. French wine sales however dropped 12%, with the French selling only 12,266,000 cases. South African wines have soared in Business Tourism is set to soar after the popularity in recent years with UK drinkers World Cup. There are many factors contributing to the no longer automatically deferring to the opinion that in the months and years after the World European wines of France, Spain and Italy. Cup, business travel will signifcantly increase. These fgures prove that South African Many business travellers, from South Africa, the African wines can compete on the world stage and continent and beyond have chosen to delay their trips take on the European giants in their own due to congestion during the World Cup period and backyard. infated prices. However, the CTICC and Cape Town Routes Unlimited’s eforts in securing large events such as the 8th World Congress of the World Society for Paediatric Infectious Diseases will lead to billions of Rand in revenue for the city. Business tourism has been hailed as an element that could sustain tourism in the province well after 2010. The One&Only Cape Town despite having only opened has been named as one of the its doors last year. The hotel world’s best international hotels occupies an enviable position by in May’s edition of both the US the V&A Waterfront and boasts and UK editions of Conde Nast an extensive array of fne wines Traveler magazine. The hotel and ofers fne dining in the form was placed in the annual ‘Hot of Nobu (Nobuyuki Matsuhisa) List’ of international hotels, and Maze (Gordon Ramsay). BUSINESSCPT l Edition 1 THE BUSINESS CPT THERMOMETER 3 State-owned Electric company Eskom fears that it will come under intense pressure during the World Cup. It will regularly update South Africans on supply during the tournament, which starts June 11th, and may even ask them to turn of some appliances if power runs low. If the worst comes to the worst, South Africans will be asked to turn of everything but one light and one TV, so that they can continue to receive updates on the electricity situation. Harmony, South Africa’s third largest gold producer posted a third quarter loss (Jan – March). The mining company’s earnings per share fell from a proft of 28c to a loss of 69c. Negative developments in Following suit, headline earnings the Greek debt crisis could threaten Old Mutual’s sales slipped from a proft of 49c to a growth according to Chief loss of 32c per share. Executive Julian Roberts. “We are closely looking at Graham Briggs, CEO attributed this decrease how things play out there. If to lower production levels. things do not work out well, sales growth will be held back,” Roberts said. He stated that it was “tough to look forward”, adding, however, that the Pravin Gordhan, South African company would experience Minister of Finance, announced the drama anyway. The that the high unemployment rate International Monetary showed that more urgent work Fund (IMF) released a report needs to be done to restructure in May saying that the the economy. Unemployment in Greek economic recovery Africa’s largest economy rose to would be more difcult than 25.2 percent in the frst quarter, as anticipated. This assessment it emerged from its frst recession highlighted concerns about in nearly 20 years. Gordhan said the the joint IMF-EU-sponsored government was also seeking to boost programme. revenue, which is under pressure after last year’s recession, by clamping down on tax evasion. South Africa, Brazil and India have signed a trilateral agreement to jointly develop a satellite to be launched into orbit for scientifc research and to South African detect natural disasters. Airlines reportedly lost President Jacob Zuma said that R14 million (€1.5 million) this initiative is an “opportunity per day in the aftermath of the to reinforce our shared Icelandic volcano eruption. Thousands of development objectives. A joint travellers were left stranded both in South Africa and satellite could lend support to Europe as SAA was forced to cancel fights to and from London, areas like agriculture, education, Frankfurt and Munich. Around 100,000 fights were afected and energy, health, information and it is estimated that the eruption crisis, at its height cost the airline communications, trade and industry $400 million per day (€325 million). transport.” BUSINESSCPT l www.businesscpt.com 4 DOING BUSINESS IN CAPE TOWN 4 Doing Business with Capetonians: what ape Town’s iconic reputation of being an hospitable, you need C cosmopolitan, creolised port city precedes it. Marked by breathtaking natural beauty, an eclectic mix of architectural styles to and freedom of expression, Cape Town is a cultural melting pot of Dutch, British, French, German and Indonesian settlers, who each indelibly stamped their mark upon the foundations of the city and surrounding areas for all generations knBy Wikus Engelbrecht ow of its future inhabitants. Once a fertile land for cultivating victuals for ships traversing past BUSINESSCPT l Edition 1 DOING BUSINESS IN CAPE TOWN 5 Multilingualism in a most comfortable with and since Multiethnic Community the majority of South Africans are bilingual, this consistently results South Africa has eleven official in an indiscriminate blend of languages. These are English, vernacular. Afrikaans, Xhosa, Zulu, Tswana, Tsonga, Venda, Sotho, Northern Cape Town receives South Africa’s Sotho, Swazi and Ndebele, which highest percentage of foreign are then further subdivided into visitors and residents, ensuring that distinct regional and tribal dialects. one is quite certainly never far away While all of the official languages from someone who speaks your are formally on equal standing, language. However in a community many account for minority use by where multilingualism is the norm, the correlating population groups it can be anticipated that nationals and do not prevail commonly outside are more amenable to people who of the country’s borders or feature are at least conversant with the in international transactions or basic greetings of an official native relations. language, which provides for an easy method to establish instant English is utilised as the parallel- likeability regardless of your origin medium language across the board or culture. For a visit to Cape Town, with Afrikaans (a hybrid tongue introductory Afrikaans is the most similar to Dutch and German) useful addition to anyone’s linguistic repertoire. the tip of Africa during the height ranking in second place, especially of the spice trading era, Cape Town within the Cape Town area. While is now home to a modern blend of it is reliably unlikely that any other Professional Apparel in the corporate and independent business language than English will enter Rainbow Nation that lends it a characteristic vitality.