Western Cape Premier, Alan Winde, says that the province is set to continue its focus on driving economic growth through strategic partnerships and initiatives aimed at improving investment conditions.
Delivering his 2025 State of the Province Address this week, he said that through collaboration with the Government of National Unity (GNU) and programs like Operation Vulindlela, the Western Cape government is determined to cut red tape, remove barriers to investment, and unlock the province’s full economic potential.
A key aspect of Operation Vulindlela will be enhancing the performance of the Port of Cape Town (PoCT) and developing other ports such as Saldanha and Mossel Bay.
According to Winde, the Elgin region’s TAD group, comprising over 50 farms, has estimated that inefficiencies at the PoCT are costing the province’s pear and apple industry nearly R1 billion annually, or about R26,000 per hectare of farmland.
Winde noted that the government is facilitating the creation of a task team consisting of various stakeholders, including Wesgro and Transnet National Ports Authority, to address these operational challenges and improve the PoCT’s efficiency.
“If we act swiftly with purpose, we can dramatically increase economic growth nationally to over 3% if the PoCT operates more efficiently,” he said.
Highlighting the Western Cape’s pivotal role in South Africa’s economic resurgence, Winde pointed out the province’s impressive track record in attracting investment and driving economic development. The region has secured 296 Foreign Direct Investment (FDI) projects, injecting over R171 billion into the economy.
Cape Town and Stellenbosch have been ranked among the top 20 South African cities for inward FDI initiatives.
Between 2021 and 2023, the Western Cape saw 35 direct investment projects from European Union member states, totalling R7.37 billion. Winde also noted that South Africa’s largest cement company is building a new R3 billion plant in the province, a testament to its ongoing economic vitality.
The Western Cape government’s Red Tape Reduction Unit has achieved a remarkable R2.4 billion in savings for businesses. With over 300,000 small, micro, and medium-sized enterprises (SMMEs) in the province, which are essential drivers of job creation and economic activity, Winde highlighted the role of the SMME Booster Fund in supporting 1,185 small businesses, creating over 1,000 new jobs, and sustaining 5,000 additional jobs.
Investment in Healthcare and Infrastructure
The Premier also touched on significant infrastructure investments, including the construction of the Eerste River Hospital’s Acute Psychiatric Unit (APU) with an investment of R86 million.
This is part of a broader initiative to build APUs at health facilities across the province, amounting to a total investment of R279 million. Other hospital projects under construction include those at Caledon, Khayelitsha District, and New Somerset Hospitals, while the R10 billion Tygerberg Hospital Modernisation project is progressing.
Winde also stressed the province’s ongoing infrastructure investment, noting that between 2014 and 2024, the Western Cape Government spent R98.9 billion on physical infrastructure. This expenditure has been instrumental in stimulating the economy, with every R1 invested generating R5.63 in capital formation and investment, directly and indirectly.
Major Infrastructure Developments Across the Province
The Western Cape is seeing tangible results from this investment. Projects in Worcester and George are advancing, with new water infrastructure projects already in progress. A R790 million project is underway at the N7 Potsdam-Melkbos van Schoorsdrif Interchange, while a new trunk road is under construction in Malmesbury, with an estimated cost of R650 million.
Winde also highlighted Cape Town’s substantial infrastructure budget, which, at R39.5 billion over the next three years, is nearly 80% larger than Johannesburg and 100% larger than Durban. A significant portion of this budget—75%—is earmarked for projects directly benefiting the city’s lower-income households.
Finally, Winde pointed to the robust growth in building plans in the Western Cape, which exceeded the national average by 8.26% over the past three years, indicating strong economic activity and confidence.
With the Western Cape continuing to lead the way in investment and infrastructure development, premier Winde reiterated the province’s commitment to creating a thriving, job-rich economy.
“Government investment lays the foundation for the private sector to build-upon and create a booming jobs-rich economy. For every R1 the Western Cape Government invests in infrastructure, R5,63 is stimulated in capital formation and investment directly and indirectly in the economy,” he said.
