Doing business in the Central City

Duck Duck Goose

Each year, this report analyses the diverse economies that make up the Cape Town Central City economy, identifying trends, patterns and shifts in the way business is conducted.

In 2021 the number of business entities overall increased from 2 846 to 2 981

In 2021, despite see-sawing lockdown levels and varying economic and other restrictions, the local economy saw a strong return to growth, with most sectors recording a positive output. This was also reflected in the downtown Cape Town economy: 14 of the 17 economic sectors operating in the Cape Town Central City grew in size, with the number of business entities overall increasing from 2 846 to 2 981.

The largest sector – retail –increased its footprint from 1 126 entities in 2020 to 1 163 in 2021. The second-largest sector – legal services – experienced the second-largest growth with the number of entities recorded in 2020 (622) increasing by 33 businesses to 655 in 2021. The fourthlargest sector – finance, investment, insurance and banking – experienced the third-largest increase, growing by 15 businesses from 160 entities in 2020 to 175 entities in 2021.

Only two of the 17 sectors experienced negative growth: the education and resources sector decreased in size from 78 to 76 entities and the property and real estate sector was down by seven entities, from 48 to 41.

Co-working spaces, which have benefitted from the hybrid work model and the digital nomad economy, held their own in the Cape Town CBD, with three new co-working spaces opening in 2021.

Artistic studios, which form part of the city’s resilient art economy, also fared well in 2021 with the number increasing from 22 to 29. The number of art galleries (which form part of the retail economy) grew from 20 in 2020 to 23 in 2021.