South Africa: Small businesses transform Cape Town CBD with record growth
According to the Cape Town Central City Improvement District's (CCID) Q1 2025 Business Confidence Survey – based on responses from 293 businesses in its inner-city footprint, a remarkable 94.8 % of respondents were satisfied with current conditions – up from 91.6 % the previous quarter.
In addition, two-thirds (66.1 %) of respondents believe the economic environment in the city centre has improved over the past year, signalling a positive shift in local economic conditions.
This growing optimism is being driven in no small part by dynamic small business owners who are playing a pivotal role in reshaping the inner city's economic landscape.
'Retailers in the Cape Town CBD have shown remarkable resilience and a willingness to adapt, innovate and reimagine their spaces over the past few years,' says Tasso Evangelinos, CEO of the CCID.
'This entrepreneurial energy is clearly paying off – confidence in future business performance remains strong, with nearly 75 % of businesses rating their 12-month outlook at four or five out of five. It's an encouraging sign that the inner city continues to offer fertile ground for growth and opportunity.'
Post-pandemic rejuvenation
The recovery of Cape Town's CBD post-pandemic is compelling.
Retail research by the CCID reveals that the total number of businesses in the city centre grew from 3,116 in 2022 to 3,302 in 2023, meaning 186 new businesses were established in a year – from clothing stores to coffee shops, art galleries, legal and medical practices and artists' studios.
This groundswell of entrepreneurial activity is especially significant given the challenges the CBD faced during the Covid-19 pandemic, which tested many small businesses and ultimately paved the way for a remarkable recovery.
Colette MacLennan, owner of the eatery The General Store in Bree Street, remembers those difficult times well. 'It was hardcore …. we hung on for dear life,' she admits, saying that to survive, the store created meals for patrons to eat at home. 'If you can get through that, you can pretty much do anything.'
Today, business is thriving. 'We started as a team of four and now, after 10 years, there are 12 of us,' MacLennan says. She believes the secret to their success is the venue's proximity to their loyal customer base.
'No day is ever the same, but our offering of fresh, healthy meals is consistent,' she says.
2The CBD drawcard
For business owners like MacLennan, the buzz of 'town' is irresistible. 'I just knew the CBD was the right market for what I wanted for The General Store,' she comments.
Richard Lemkus, owner of iconic sneaker St Georges Mall store Lemkus (formerly Jack Lemkus, which dates to 1935), says doing business in town is multidimensional. 'We believe in the future of the inner city,' he asserts, 'not just as a business location, but as a cultural and creative hub.'
He believes momentum is building, along with an openness to new ideas. 'People are looking for authentic experiences and there's space to deliver those in a way that is both world-class and rooted in Cape Town,' he says.
Casey Augoustides, co-developer of The Barracks building, concurs. 'The energy of innovation and creativity you find in the inner city attracts many niche commercial business owners who are like-minded,' he states.
'They're all trying to do something exciting and different with their businesses in a prime location and we really love this.'
The development of the heritage building, on the corner of Bree and Strand Sts, is a case in point. 'The intention was to attract a good mix of commercial tenants to complement the apartments, and the street,' Augoustides explains.
Commercial tenants include the iconic Mike's Sports, high-end kitchen appliance store Officine Gullo, iconic sneaker store Shelflife, and a rooftop wellness centre, Lighthouse Holistic.
All rights reserved. © 2022. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).
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