Another trend is the growth in offshore investing. The Business Times in the Sunday Times reported in 2020 that the all-share index of South Africa’s primary stock exchange, the JSE, had grown by less than 5% in five years. By comparison, the US’s S&P 500 was 72% higher. However, Jacques Plaut of Allan Gray, which manages more than R500-billion, is quoted saying, “If the crowds are extremely fearful of something, don’t sell SA Inc without evaluating the stocks on the facts and the merits of each case.” The stellar performance of the Capitec Credit: VDMMA (Van der Merwe Miszewski Architects) share price is noted, as is the fact that some companies will benefit from a weak rand. More recently, the city Repor ting on a recent analysis of the global asset has become home to several management sector from the Boston Consulting Group, financial technology (fintech) Cairns flagged alternatives as an area of future growth. BCG i n c u b a to r s : a c c o rd i n g to anticipates alternatives rising to nearly 50% of revenues Tracxn there were 154 fintech in four years, up from less than a fifth of AUM which they star tups in Cape Town in currently constitute. 2019 and French Tech Labs Old Mutual Alternative Investments (OMAI) invests in operates out of Century City. infrastructure, private equity, affordable education, housing The region’s three tertiary and fund of funds. The OMAI IDEAS Fund is a regular investor in institutions provide a sound renewable energy projects. educational base for the financial sector, with a more specific business focus being Contribution to GDP afforded by the University o f C a p e To w n G r a d u a t e School of Business (GSB), the The financial services sector was the single largest contributor to University of Stellenbosch regional gross domestic product (GDP) in 2016. With a value of Business School (USB) and R43-billion in that year, a consistent growth rate over a five-year the School of Business period of 3.8% and inward investment of more than R2-billion and Finance (SBF) at the in the same period, the financial services sector punches above University of the Western its weight. Cape. TSIBA Business School This is also true nationally, where Cape Town’s share of offers undergraduate and national employment in the financial sector is about 20% and postgraduate business the contribution to gross value-added (GVA) is 15%. q u a l i f i c a t i o n s a s we l l a s Cape Town asset managers are operating in an area informal shor t courses in that has historically been strong in banking and finance. leadership, entrepreneurship The city is host to the headquarters of large insurance and commerce. TSIBA stands companies such as Metropolitan, Old Mutual Africa, Santam, for Tertiary School in Business Direct Axis and financial services groups such as Sanlam, Administration. ■ PricewaterhouseCoopers and Allan Gray.
WESTERN CAPE BUSINESS 2021