Cape Town plans to sell most of its shares in the Cape Town International Convention Centre (CTICC) to raise about R885 million. This money will help improve important city services like water and safety. Even after the sale, the city will keep ownership of the land to make sure the public interest is protected. The city is asking its people for their opinions before making a final decision, showing it wants to be open and fair. This move could bring fresh investment to the CTICC while helping Cape Town grow in a balanced way.
Cape Town plans to sell its 72.7% controlling stake in the Cape Town International Convention Centre (CTICC) to unlock approximately R885 million. The sale aims to redirect funds toward essential city services while retaining land ownership to ensure public oversight and support sustainable economic growth.
In a city renowned for its dramatic landscapes and vibrant culture, Cape Town’s municipal leaders recently put forth a proposal that could redefine the city’s financial and economic direction. At the heart of this discussion lies the Cape Town International Convention Centre (CTICC) – a beacon of the city’s aspirations since its doors opened in 2003. City officials have suggested they may sell their controlling 72.7% interest in this iconic venue, a deal valued at roughly R885 million, not including VAT.
For over twenty years, the CTICC has stood as more than just a building. Located strategically in Foreshore, it signaled Cape Town’s leap onto the global stage as an international destination for conferences and events. When the city and the Western Cape Government first invested in this project, their vision was clear: to ignite economic activity, drive tourism, and place Cape Town at the heart of Africa’s convention circuit. Over time, this vision has produced significant dividends – not only financially, but also in terms of economic development and city pride.
The impact of the CTICC extends far beyond its glass facades and bustling halls. The centre has facilitated the creation or preservation of more than 169,000 jobs, according to recent figures. Its direct and indirect contributions have added nearly R58 billion to the Western Cape’s Gross Geographic Product, with its effect on the national economy reaching close to R67 billion. These achievements highlight how well-placed public investment in infrastructure can support entire ecosystems, from small hospitality ventures to logistics firms and creative enterprises.
Cape Town’s decision-makers have chosen to open the floor to public participation before finalizing any sale of shares. This move reflects a commitment to transparency and democratic process – values that resonate throughout the city’s approach to governance. Similar to the open consultations seen in global metropolises like Sydney, Toronto, and Amsterdam, Cape Town’s leadership understands the importance of public trust and community voice when dealing with major civic assets.
The call for public input underscores a broader principle: when a city contemplates a structural shift in ownership of an asset as significant as the CTICC, it must weigh not only economic benefit but also community values and expectations. Residents, business owners, and civil society organizations all have a stake in the outcome. The city’s willingness to embrace this dialogue signals maturity and foresight, as well as a desire to avoid the pitfalls that have plagued less consultative transitions elsewhere.
This careful approach marks a shift in how Cape Town sees itself as both steward and innovator. Mayor Geordin Hill-Lewis and his colleagues repeatedly emphasize that the city’s primary role lies in providing essential services – such as water, sanitation, electricity, and safety – rather than overseeing business ventures. By considering divestment from the CTICC, city officials argue they can redirect resources towards these core responsibilities, ensuring sustainable growth while creating space for new expertise and investment in the convention centre.
Municipalities worldwide have grappled with similar crossroads: should they maintain direct control over assets like convention centers, or unlock value through private ownership? The global track record reveals a variety of outcomes. The United Kingdom’s sweeping privatizations of the 1980s set a precedent for transferring public enterprises into private hands, often citing benefits in efficiency, innovation, and capital access. However, these transitions also sparked debates about public oversight and social responsibility – debates that remain relevant in Cape Town’s current context.
In the case of the CTICC, city officials propose a nuanced path. While they seek to transfer shares in the operating company, they intend for the city to retain ownership of the underlying land. This dual arrangement aims to guard against speculative developments and maintain a measure of public influence, even as commercial operators take the helm. It reflects a growing trend among cities to act as facilitators and regulators, rather than direct managers, of economic projects – a philosophy sometimes referred to as the “Barcelona Model.”
This model grew in popularity after Barcelona’s success in leveraging private investment and creative partnerships in the wake of the 1992 Olympics. Rather than micromanaging operations, city officials focused on strategic oversight, encouraging innovation while ensuring that civic interests remained protected. Cape Town’s evolving approach echoes this strategy, balancing the promise of commercial dynamism with the need for public accountability and long-term vision.
The current share distribution of the CTICC reflects its collaborative roots: Cape Town holds the majority at 72.7%, the Western Cape Government owns 22.2%, and Sunwest International (Pty) Ltd controls the remaining 5.1%. This partnership model helped the centre flourish, drawing on a blend of public stewardship and private sector expertise. Now, the city stands poised to usher in a new chapter, one that could see the CTICC propelled to even greater heights under the guidance of entrepreneurial owners.
Economists and urban planners stress that the ultimate success of such transitions lies not in the transaction itself, but in what follows. If the sale proceeds, Cape Town could unlock capital for urgent priorities – such as expanding water infrastructure, upgrading transit systems, or developing community hubs in underserved neighborhoods. The potential for positive ripple effects is immense, but so are the stakes. Observers will scrutinize whether new ownership stays true to the centre’s founding mission of accessibility, inclusiveness, and community benefit.
The CTICC’s legacy is not simply a matter of numbers or contracts. Over the years, it has hosted luminaries from every field and welcomed a cascade of global events, each leaving an imprint on the city’s cultural and intellectual fabric. As Cape Town considers this bold step, the outcome will shape not just its economic trajectory, but also its sense of identity. The city’s creative spirit, entrepreneurial drive, and commitment to public dialogue will all be tested as stakeholders navigate the complexities of this transformative decision.
Ultimately, Cape Town’s deliberations over the future of the CTICC capture the essence of modern urban governance – a balancing act between fostering economic dynamism and safeguarding the public good. As the conversation unfolds, both residents and observers across the continent will watch closely, drawing lessons from how Africa’s southernmost city charts its course at this pivotal moment.
Cape Town plans to sell its 72.7% controlling stake in the CTICC to raise approximately R885 million. The purpose of this sale is to redirect funds towards improving essential city services such as water, sanitation, electricity, and public safety. Despite selling its shares in the centre’s operating company, the city will retain ownership of the land on which the CTICC sits, ensuring continued public oversight and protection of community interests.
The city aims to unlock capital tied up in the CTICC to address pressing infrastructure and service delivery needs. With growing demands on water supply, safety, and other municipal services, the sale proceeds will provide much-needed funding. Additionally, city leaders believe that new private investment and expertise can help the CTICC grow and innovate, while the municipality focuses on its core responsibilities.
Yes. Cape Town is actively seeking public input before making a final decision on the sale. This open consultation process reflects the city’s commitment to transparency, accountability, and democratic governance. Residents, businesses, and civil society groups are encouraged to share their views, ensuring that community values and expectations are considered alongside economic factors.
Even after selling most of its shares in the operating company, Cape Town will retain ownership of the land beneath the CTICC. This arrangement ensures that the city can protect public interests, prevent speculative development, and maintain strategic influence over the future use of the site. It is a safeguard to balance private investment with public accountability.
Since opening in 2003, the CTICC has been a major driver of economic activity in Cape Town and the Western Cape. It has supported or preserved over 169,000 jobs and contributed around R58 billion to the Western Cape’s Gross Geographic Product. On a national scale, its impact approaches R67 billion. The centre has also boosted tourism, attracted international events, and fostered growth in related industries such as hospitality and logistics.
Yes. Cities worldwide have faced similar decisions about managing public assets like convention centres. Cape Town’s model – selling operating shares while retaining land ownership – reflects lessons from places like Barcelona, which successfully leveraged private investment post-1992 Olympics while maintaining strategic public control. This balanced approach aims to promote innovation and efficiency without sacrificing long-term community benefits or economic equity.
If you want to learn more or have input on the proposal, keep an eye on official Cape Town communications for public engagement opportunities.
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