The city’s tallest building since 1993 represents more than a property development

The new Portside development in Cape Town’s central business district was launched in August by Old Mutual and FirstRand Bank. While there has been quite a bit of focus on the architectural design of the building itself, including the fact that it is the first new tall building in Cape Town since the construction of Safmarine House in 1993, as well as its green building credentials, its significance lies in the vote of confidence given to the Cape Town economy by two of South Africa’s largest corporate businesses.

About 87% of South African multinational enterprises and corporate businesses are based in Johannesburg. Only 13% are located in Cape Town. There is often pressure on corporates in Cape Town to move northward, closer to African and global markets.

Some would argue that it does not matter, that Cape Town’s economy is driven by small and medium enterprises. While this is numerically correct, it ignores the important role that multinational enterprises play in “enhancing the city’s global competitiveness through access to knowledge, technology, skills and markets, as well as creating the kinds of networks that help foster the integration of SMMEs (small, medium and micro enterprises) into global value chains” (Global Competitiveness Report for the City of Cape Town 2011).

This is why one of the objectives of the proposed new Economic Development Agency is to enhance the business and investment climate in Cape Town and the Western Cape in partnership with all types of firms, big and small.

And this is why Portside represents much more than a property development, albeit it a tall one, for the city-region. ☑

Andrew Boraine

www.andrewboraine.com