The Mother City is an amazing place to do business. We have seen a lot more of the international investment and founder communities moving their lives and their ventures here for that reason. One of the biggest things going for Cape Town is that people want to be here! With the climate, the ocean, the mountains, the vineyards and more, it makes for a perfect lifestyle city. It offers an amazing work-life balance for entrepreneurs and investors alike. On top of that, the city is very well connected to the global tech and entrepreneurship world.
The city has become much more investment friendly too. Cape Town’s Foreign Direct Investment Policy has recently been named the best in Africa and 21st in the world. Property prices are also surging at more than 20% annually for most parts of the city, as owning a part of town becomes more and more sought after.
These investment trends are also reflecting in the Outsourced CFO client base. We are helping more and more internationals set up shop in Cape Town, and both local and international founders are often funded from abroad. Of late, we have seen sizable investments come from across Europe, the US, Hong Kong and more.
But beautiful as the city is, navigating the South African legislative and compliance world is still very challenging for foreigners starting and growing their companies here. Some things that are important when setting up in Cape Town:
- Make sure that you have the right company structure for corporate governance purposes. Making mistakes in terms of shareholding, directorships and other secretarial matters could be much more costly over time compared to doing it right at the start.
- Make sure that you have the right business model and strategy. Not everything that works in the US will take off here. Markets are different. Consumer and corporate spending patterns are different. Back your business model and strategy with good homework and local insight.
- Find the right network partners. Cape Town is cliquey. It’s important to connect with strong networks to help you find reputable suppliers, connect with government, access local networks and market opportunities and more.
- Do your investment right. There a lot of considerations to keep in mind when bringing money into the country. The Reserve Bank, currency fluctuations, other sources of funding and other considerations need to be worked through to ensure success.
If you are looking for a Cape Town-based group of professionals to help you navigate this gorgeous city, do make sure to reach out to us. We look forward to doing business with you!