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Home » Industry News » Business Advisory & Financial Services » BPO sector created 8 000 jobs and injected R2,8-billion into Cape Town’s economy in 2023

BPO sector created 8 000 jobs and injected R2,8-billion into Cape Town’s economy in 2023

By Larry Claasen

THE Business Processing Sector created almost 8 000 jobs and injected R2,8-billion into Cape Town’s economy in 2023, according to the Invest in Cape Town Regional Market Analysis and Intelligence 2023/24 report.

The report, which looked at the economic achievements of the city said the BPO sector “has emerged as a catalyst for economic growth, creating thousands of job opportunities and making a significant impact on the local economy.”

It said the BPO sector’s ability to work together with its own stakeholders, as well as local service providers like transportation operators, facilities management, IT infrastructure providers, training and development institutions, and telecommunications companies has created an environment that has attracted foreign investment into the cape.

“The industry’s collaborative supply chain, sector diversity, and commitment to providing exceptional services have positioned Cape Town as a premier destination for outsourcing and offshoring needs.”

This type of collaboration has seen it create 7 978 new jobs and inject R2,79-billion into the city’s economy in the last financial year alone.

Continued growth

These latest figures confirm the upward momentum of the BPO sector’s growth in Cape Town.

“In total the sector accounts for more than 55 000 jobs. This achievement has been made possible through strong partnerships with funders from the City of Cape Town, provincial government, and national government, most especially to accelerate the development of the right skills programmes,” said the report.

The BPO sector has grown rapidly in the country and especially in the Western Cape, seeing it become a powerful economic driver. According to CapeBPO for every offshore BPO job based in South Africa, R350 000 in foreign revenue is injected into our economy.
This means with about 100 000 BPO jobs in South Africa – the majority of which are right in the Western Cape – R35-billion goes into our national economy.

CapeBPO is a special purpose vehicle for the City of Cape Town and the Western Cape’s strategic business partner responsible for the growth and development of the BPO sector.
The growth in the BPO sector is showing no signs of slowing down. Luxembourg based BPO operator Foundever set up operations in Cape Town in May and said it planned to employ 3 500 people in the city by 2026.

This follows the announcement by Philippines-headquartered group Sourcefit saying in March that it was setting up operations in the city.

The report notes that South Africa has been quite adept at catering for a wide range of sophisticated requirements of offshore BPO operators.

“Cape Town’s BPO sector exhibits remarkable diversity, catering to clients from a wide range of industries and source locations, in particular from the UK and the US. From customer support and technical assistance to finance and accounting, the industry provides.”

It points out that the city has positioned itself well to continue attracting international BPO companies.

“Cape Town’s BPO sector embodies the perfect blend of digital advancements and the human touch, making it a destination of choice for businesses seeking exceptional offshore solutions.”

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