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BOOST BUSINESS GROWTH AND START-UPS IN CAPE TOWN

Cape Town is a business-friendly destination that prioritises an enabling environment for entrepreneurship and business growth.

While different services exist within the City of Cape Town, there are also support organisations that provide services to people who are either doing business or wanting to start a business in the city.

The City’s Small Business Support office, established to promote entrepreneurship and business-driven job placements, helps business people find the most appropriate support organisation and/or programme from a network of over 90 business development organisations (including financiers) in Cape Town. The value of this service is that it prevents entrepreneurs from wasting energy, money and time approaching the wrong support organisations and service providers or paying for services that are sometimes freely available or partly subsidised.

Service offering

• We provide the following services:

• Information and advice about City procedures, business assistance programmes, etc.

• Connecting businesses to the right City officials and resources.

• Assistance with resolving bottlenecks caused by a lack of knowledge of City processes, business-related issues, regulatory compliance, etc.

• Access to financial guidance in order to find the most suitable source of funding.

For assistance contact the Economic Development Department’s Small Business Support office on:

021 417 4043 or
e-mail pumla.mgwali@capetown.gov.za or
duncan.alcock@capetown.gov.za
(please always copy carlo.vizzi@capetown.gov.za).

Cape Town Development

The IPD South Africa Annual Property Index, released on the 25th March 2015, shows the South African investment property sector delivered an ungeared total return of 12.9% in 2014 – down from 15.9% in 2013.

This result is not unexpected given that the commercial property sector is still in recovery mode, with the prospect of absorbing excess market supply in a low-growth environment. While headwinds in the form of constrained electricity supply and rising interest rates remain, most analysts expect economic growth to improve in 2015 on the back of a more supportive global economic environment.

Income return was steady at 8.7% for the year, however, capital growth slowed to 4.0% from 6.8% the year before despite an improvement in underlying fundamentals. This reflects a more cautious approach among valuers and reverses the bullish view of the year before, perhaps reflecting a fully priced market especially at the top end. At a sector level, industrial property was the top performer during the year with a total return of 14.1%, outperforming retail at 13.3%. The office sector continues to underperform, in a difficult market, but still managed a respectable 12.1% total return courtesy of a 9.5% income return.

A focus on active management is paying off and is highlighted by an impressive net income growth of 8.1%. This was driven by a basic rental growth of 6.3%, a lower vacancy rate as well as contained operating costs- which grew at 5.7%.

In summary, while returns have moderated, direct property continues to demonstrate its hybrid nature by delivering a total return between the MSCI SA Equities Index and bonds on a 3-year view, importantly at a lower volatility than both the other asset classes.

 

Original Article

IPD_logohttp://www.ipd.com/research-updates/south-african-property-returns-slow-in-2014.html