Cape Town’s latest quarterly jobs report, released November 11, 2025, underlines a tale of two South Africas. While the national unemployment rate ticks toward 34%, exacerbated by Q3’s sluggish 0.3% GDP growth and persistent structural woes, the Mother City added 40,000 jobs in Q3 alone, the highest among metros, pushing year-on-year gains to 70,000 and keeping its unemployment rate at an enviable 21.6%.
This is against a national landscape where today’s national unemployment data for Q3 reflects a decrease of 112 000 (0,4%) in the labour force when compared to Q2 of 2025.
With 1.826 million employed, Mayor Geordin Hill-Lewis has hailed it as “dignity” for families, tying it to a record R40 billion infrastructure pipeline over three years, set to deliver 130,000 construction roles, 75% will benefit low-income households.
Alderman James Vos spotlighted four levers: land releases for developments, Business Retention and Expansion (BRE) programs across 33 industrial zones, an Ease of Doing Business Index streamlining ops, and skills pipelines via special purpose vehicles (SPVs), like the BPO sector’s 10,000+ additions.
For business audiences, this isn’t simply serendipity, it’s a masterclass in economic momentum and execution amid general national malaise. But is Cape Town’s DA-led alchemy replicable, or is it propped up by “semi-gration” of affluent escapees from Johannesburg and Pretoria’s urban decay, plus foreign developer dollars inflating Cape property prices?
A deep dive reveals a potent mix of deliberate, business-centric policies amplified by demographic and investment tailwinds. Other metros—Johannesburg (29.5% unemployment), Durban (35.2%)—could indeed dial back ideological noise for pragmatic borrowing, but success demands political will beyond rhetoric.
Specific Measures: From Land to Labor, a Business-First Blueprint
Cape Town’s economic edge stems from targeted interventions blending regulatory relief with catalytic spending, hallmarks of DA governance since 2006, when unemployment hovered at 25% under ANC rule. The city’s R40 billion infrastructure blitz, announced in the 2025/26 budget, isn’t pie-in-the-sky: It’s front-loaded with R15 billion for water/sewer upgrades and R10 billion for roads, directly spurring construction (up 8% YoY in WC). This aligns with OECD recommendations for “labor market friendly institutions,” yielding quick wins: Q3 employment rose in trade/hotels (12,000 jobs) and manufacturing (5,000), as per Stats SA’s QLFS data.
Land release is a standout: Since 2023, the city unlocked 500 hectares from its portfolio for mixed-use projects, greenlighting 20,000 housing units and 1 million square metre commercial space, generating 15,000 construction jobs and attracting R5 billion in private capital investment.
BRE, launched in 2024, supports 500+ firms in high-growth zones like Atlantis SEZ, offering expansion grants and red-tape audits that retained 8,000 jobs in autos and renewables. The Ease of Doing Business Index, benchmarked against global standards, slashed permit times from 90 to 45 days, boosting FDI 22% YoY to $2.1 billion. Skills SPVs, like the Cape BPO Academy (partnered with CCI), trained 5,000 youth for call centers, filling a 10% vacancy gap.
These aren’t novel, echoing DA’s national manifesto for barrier-busting but Cape Town’s execution shines: Zero tolerance for corruption (R1.2 billion recovered since 2022) and digital portals cut bureaucracy 30%, as per the World Bank’s Doing Business metrics. And the result? A virtuous cycle: Firms like Amazon Web Services expanded data centers here in 2025, adding 2,000 tech roles.
The Real Drivers: Governance Grit Meets Migration Mojo and Foreign Cash
DA stewardship is no small factor with decades of fiscal prudence (WC’s debt-to-income ratio at 40% vs. national 75%) fostered trust, drawing 60% of SA’s FDI investments to the province. But semi-gration has also turbocharged it: The Wise Move’s 2025 Migration Report logs 120,000 net inflows from Gauteng (Joburg/Pretoria), up 15% YoY, as professionals flee load-shedding (now minimal in WC) and crime (Gauteng’s rate 2x CT’s). These high earners (average R800K income) inject R20 billion in consumer spend, sustaining retail/services jobs (25% gain).
Property’s has become the economic flywheel: CT prices rose 8.2% YoY to Q3 2025 compared to a national: growth of only 2.2%, with sectional titles up 35% since 2020, per Lightstone. Foreign developments (e.g., UK’s Balgray from Dubai) poured R1.2 billion into Atlantic Seaboard luxury (yields 9.4%), pricing locals out but funding municipal revenues (R15 billion from transfers). International investment adds $800 million in tourism/hotels with multiplier effects adding 40,000 indirect jobs.
It’s not all historical luck (CT’s port/geography helps); policy amplifies: DA’s pro-business ethos contrasts ANC metros’ red tape, where Joburg’s 120-day permits stifle growth.
Lessons for Other Metros: Practicality Over Politics
Johannesburg and Durban should heed successes in Cape Town and dial back rhetoric (e.g., expropriation threats) for deeds. Much could be learned and emulation of CT’s BRE with industrial audits, targeting 20% job retention via incentives could drive growth in inland metro’s.
The Infrastructure first policy: Emulate R40 billion commitments, ring-fencing 50% for low-income via EPWP expansions. Ease metrics: Cut permits 50%, digitize permit processes like CT’s eServices portal. Skills: SPVs for BPO/manufacturing, partnering privates for 10,000 trainees/year.
Reverse semi-gration risks are currently fading (Wise Move notes Gauteng’s affordability pull), so metros must build appeal with crime crackdowns, energy stability. OECD urges “business regulatory environments” nationally; metros leading locally (as DA’s WC does) could lift SA’s 1% growth to 3%.
Cape Town proves economics trumps ideology: Jobs follow delivery. Other cities? Borrow the playbook—practical, pro-growth moves could halve unemployment disparities, forging a more equitable boom. For execs, it’s opportunity: CT’s ecosystem beckons, but scalable models elsewhere promise pan-SA wins.
