Research into investors’ confidence with engaging with the Western Cape Agribusiness Investment Unit (AIU)

Wesgro commissioned an evaluation of the confidence levels of existing investors and their experiences of engaging with the Western Cape Agribusiness Investment Unit (AIU). As the first point of contact for import, export and investment in the Western Cape, Wesgro manages the AIU through its Investment Promotion Unit (IPU). The assessment was used to improve the AIU services offered to investors and addressed the following thematic areas: investment criteria and concerns influencing decisions to invest in agribusinesses in the Western Cape; positive and negative investment experiences and interactions with the AIU; and whether investor needs are being met by the AIU’s interventions and programmes.

Key research findings included that investment criteria are closely tied to the socio-economic and political environment of the region – the physical infrastructure and good governance in the province impress investors. Most have expanded their businesses internationally but have not yet expanded into Central Africa. The prevalence of red tape and lengthy application processes were found to be the main barriers to growth amongst investors. Overall confidence levels are good despite investor concerns about skilled labour shortages and rising commodity costs. Investors require more frequent and focused engagements with the AIU, favorably portrayed as an attractive vehicle for strong investment support.