Political stability strengthens Cape Town’s appeal to investors

Cape Town's political stability over the past five years has bolstered the city's appeal to both local and international investors. The city is unique in that it has retained the same political party and mayor for a full five-year term, unlike other municipalities that have experienced frequent changes in administration and leadership.

However, political stability alone does not guarantee investor confidence, according to Professor Zwelinzima Ndevu, head of Stellenbosch University’s School of Public Leadership. Ndevu emphasized that investors seek a secure environment for their investments and that Cape Town's stability has contributed to its ability to attract investors.

He predicted continuity of stability following the upcoming local government elections in November, crediting the Democratic Alliance (DA) party for maintaining its strong support within the city. While Ndevu acknowledged that stability does not inherently ensure service delivery, he attributed Cape Town's stability to the DA government's appointment of competent individuals and their accountability in governance.

Investors would likely consider the composition of the coalition government following the elections before deciding to invest, as past volatility in other coalitions has led to poor service delivery. A recent Business Confidence Index conducted by the Cape Town Central City Improvement District (CCID) revealed that business confidence in Cape Town has soared, with 98.7% of businesses reporting high satisfaction with current trading conditions.

The index highlighted the city's diverse economic opportunities, with sectors such as retail, hospitality, healthcare, professional services, finance, technology, and business services thriving. The CCID CEO, Tasso Evangelinos, noted that Cape Town's central city is not dependent on a single sector and has seen significant growth in businesses over the past year.

Additionally, the City's 2025/26 Business Satisfaction Survey reported a high Public Service Quality (PSQ) score of 92, indicating strong public service performance.