Business sentiment in Cape Town’s CBD has reached its highest since 2020 according to the Cape Town Central City Improvement District’s (CCID) Q1 2025 Business Confidence Survey.

Based on responses from 293 businesses in its inner-city footprint, 94.8% of respondents are satisfied with current conditions – up from 91.6% the previous quarter. In addition, two-thirds (66.1%) of respondents believe the economic environment in the city centre has improved over the past year.

The growing optimism is being driven by dynamic small business owners who all play a pivotal role in reshaping the inner-city’s economic landscape, says Tasso Evangelinos, CEO of the CCID.

“Retailers in the Cape Town CBD have shown remarkable resilience and a willingness to adapt, innovate and reimagine their spaces over the past few years. This entrepreneurial energy is clearly paying off – confidence in future business performance remains strong, with nearly 75 % of businesses rating their 12-month outlook at 4 or 5 out of 5. It’s an encouraging sign that the inner city continues to offer fertile ground for growth and opportunity.”

The post-pandemic recover of Cape Town’s CBD is compelling with retail research by the CCID revealing that the total number of businesses in the city centre grew from 3 116 in 2022 to 3 302 in 2023, meaning 186 new businesses were established in a year – from clothing stores to coffee shops, art galleries, legal and medical practices and artists’ studios.