Cape Town's political stability over the past five years has made it an attractive destination for local and international investors. The city is the only metropolitan council that retained the same political party and mayor for a full five-year term, while other municipalities experienced changes in administration and mayors due to coalition governments. This stability has contributed to the city's ability to attract investment, which might have been deterred if instability existed.
According to Professor Zwelinzima Ndevu, head of Stellenbosch University's School of Public Leadership, investors seek a secure environment for their investments. He notes that Cape Town's stability has enabled it to attract investors, but emphasizes that stability alone, without competent leadership, is not a guarantee for investor confidence. Ndevu predicts that the city will continue to enjoy this confidence after the November 4 local government elections.
Ndevu forecasts that the Democratic Alliance (DA) will likely obtain an outright majority to govern the city after the elections. He cites the party's strong performance in previous national and provincial elections, which has consolidated its support base. However, he notes that the DA may experience some losses among Coloured voters to the Patriotic Alliance, but does not expect this to be significant.
While stability is essential, Ndevu warns that it does not guarantee service delivery. He cites Buffalo City in the Eastern Cape, which has had relative stability with two mayors over the past five years, but has not translated into service delivery. Competent leadership is crucial for investor confidence, and Ndevu emphasizes that the DA government's appointment of competent people has contributed to Cape Town's stability.
A recent Business Confidence Index conducted by the Cape Town Central City Improvement District (CCID) shows that business confidence in Cape Town has reached a historic high. The index reveals that 98.7% of businesses are highly satisfied with current trading conditions, with 58.11% believing conditions have improved over the last year. Forward-looking confidence is also strong, with 79.1% of businesses rating their outlook at 4 or 5 out of 5.
The CCID attributes the high business confidence to the diversity and scale of opportunities available in the city centre. The city's central business district is home to 3,547 businesses, an increase of 257 businesses from the previous year. Retail remains the dominant commercial force, with 1,495 entities, while other sectors such as hospitality, healthcare, and technology are also performing well.
The City's own 2025/26 Business Satisfaction Survey shows that businesses have given the City an overall Public Service Quality score of 92, up from 86 in 2023/24. This strong result indicates good performance by the public service provider.
Key points
- Cape Town's political stability has boosted investor confidence ahead of local government elections.
- The city's business confidence has reached a historic high, driven by its diverse economy and favourable trading environment.
- Competent leadership is crucial for maintaining investor confidence and delivering services.
