The Cape Town City Council has decided to start an exploratory public participation process into the sale of the city’s majority shareholding in the Cape Town International Convention Centre (CTICC). The city’s current shareholding in the CTICC is 72.7%, with the Western Cape government holding 22.2% and Sunwest International having the remaining 5.1%.

“We believe that this municipal asset shareholding of 72.7%, with an estimated desktop valuation of approximately R885-million (excluding VAT) is ripe for private sector investment to unlock the great commercial potential for this asset,” explained Cape Town Finance MMC Siseko Mbandezi. “The city as the main shareholder has been instrumental in supporting the growth of this asset over the years. The CTICC will remain a convention centre and the land will remain city-owned.”

The CTICC has created or sustained more than 169 000 jobs since it was established in 2003. It has added R58-billion to the gross geographic product of the Western Cape province and contributed R66.9-billion to the country’s GDP. The conference centre had played a major role in developing the business tourism sector in the province and the country. Tourism is a major source of income for the city, province and country and an important impetus for socioeconomic development.

“In considering a potential divestment in the CTICC, the city is committed to ensuring that its strategic interests, and those of the public, are protected,” he assured. “Various options were looked at by independent experts, including the sale and the latter seemed to be the most advantageous. It is hoped that the income from the sale of the city’s stake in the CTICC will be able to further drive municipal service delivery and form part of the city’s major infrastructure investment drive.”

The City Council was seeking to focus on its core constitutional mandate, he pointed out. This was to provide essential infrastructure and services. Selling its stake in the CTICC would allow the city to reassign much-needed resources and use them more effectively, strengthening both long-term financial sustainability and service delivery.

“By transferring ownership to a commercially agile entity, the CTICC will be better positioned to expand its market share, attract international events, and sustain economic spin-offs for Cape Town’s tourism, hospitality, and small business sectors,” he highlighted. “We look forward to taking this process through public participation, to garner inputs and to see the appetite of the market.”