Cape Town hosts summit to boost India trade and tourism

The City of Cape Town hosted the sixth India-Africa Entrepreneurship and Investment Summit to strengthen economic ties and attract Indian investors to the region.

The three day summit brought together investors, entrepreneurs, and leaders from public and private sectors to foster relations between South Africa and India, according to Cape Town Etc.

This year's summit marked the first time the City of Cape Town served as official sponsor, signalling municipal intent to position the Western Cape as the primary African entry point for Indian capital and business ventures.

Alderman for Economic Growth James Vos reported that bilateral trade between Africa and India surpassed US$100 billion in the 2024/2025 financial year, up from $56 billion in 2019/2020. He stated that Cape Town could play a fundamental role in sustaining this upward trajectory.

The Western Cape has seen imports from India surge by 72% year on year in 2025, with India serving as the second largest import source market for the province last year. India accounted for an 8.4% share of total provincial imports in 2025. Exports to India grew at an average annual rate of 46.37% between 2020 and 2024.

Between 2015 and 2024, the Western Cape region received 11 key foreign direct investment projects from India with a total capital expenditure of US$87.30 million. The US$87.30 million figure is equivalent to approximately R1.4 billion. Approximately 88% of these investments focused on technology services and business process outsourcing sectors.

With Indian outbound travel forecasted to reach 39 million individuals by 2028, officials are working to establish a direct flight between Cape Town and India to unlock trade and tourism opportunities. Only 79,774 Indian travellers visited South Africa last year, representing a significant opportunity for growth, according to Vos.

The IMF projects Indian GDP will grow by 63.5% by 2031, potentially confirming India as the fastest-expanding major economy worldwide. Officials noted that Indian outbound tourism in 2023 already stood at 28.2 million trips, with the gap between that figure and South Africa's 79,774 Indian visitors pointing to an accessibility barrier rather than a lack of demand. The municipal delegation's Indian tour, led by Alderman Vos, identified the removal of indirect routing through Middle Eastern hubs or Johannesburg as a priority, with a direct flight between Cape Town and major Indian cities seen as key to unlocking suppressed demand.

Frequently asked questions

Why did the City of Cape Town sponsor the India-Africa Entrepreneurship and Investment Summit for the first time?

The City of Cape Town assumed its first-ever sponsorship role to signal municipal determination to establish the Western Cape as the primary African entry point for Indian capital and business ventures.

What share of Western Cape imports does India account for?

India accounted for an 8.4% share of total Western Cape provincial imports in 2025, making it the second largest import source market for the province.

How much has India invested in the Western Cape over the past decade?

Between 2015 and 2024, Indian companies deployed US$87.30 million, equivalent to approximately R1.4 billion, across 11 foreign direct investment projects in the Western Cape, with nearly 88% focused on technology services and business process outsourcing.

What does the IMF forecast for India's economic growth?

The IMF projects that Indian GDP will grow by 63.5% by 2031, potentially making India the fastest-expanding major economy in the world.

Why do so few Indian tourists visit South Africa despite high Indian outbound travel volumes?

Officials attribute the low number of Indian visitors, only 79,774 last year against 28.2 million Indian outbound trips in 2023, to an accessibility barrier caused by indirect routing through Middle Eastern hubs or Johannesburg rather than a lack of demand.

Source: capetownetc.com, capetown.today