Business

The small state-owned company that makes millions

Seth Thorne • 10 February 2025

The Cape Town International Convention Centre (CTICC), a ring-fenced state-owned company, has proven that public entities can shine bright when run properly.

The CTICC was established in 2003 to become a premier venue for conferences, exhibitions, banquets, concerts, and business meetings.

The co-founders believed the CTICC would positively impact the economic and social development of Cape Town and South Africa.

Covering around 6.1 hectares on Cape Town’s Foreshore, the CTICC is conveniently located near the Victoria & Alfred Waterfront, key hotels, and the city centre.

The CTICC is jointly owned by the City of Cape Town (72.7% shareholding), the Provincial Government of the Western Cape (22.2% shareholding), and SunWest International (5.1% shareholding).

The Cape Town International Convention Centre Company owns and manages the business of the CTICC, a complex made up of two facilities – CTICC 1 and CTICC 2, connected by a Skybridge.

It features large auditoriums, exhibition halls, intimate boardrooms, and stylish cafés, with various venues and food and beverage options.

The centre has hosted numerous significant events over the years, including the final draw of the 2010 FIFA World Cup, the 2023 Netball World Cup, and the first sitting of the seventh Parliament.

Unlike many state-owned entities, the CTICC has navigated a challenging operating environment and is going from strength to strength.

In the 2023/24 financial year, it generated revenue of R400.7 million and made a R242.7 million profit, a significant increase from R17.6 million in the previous year. Their return to profit was 276% better than budgeted.

Earnings before interest, taxation, depreciation, and amortization (EBITDA) reached R82.5 million, exceeding the budget by 96.5%

From its inception, the CTICC has been driven by a mandate to create jobs and stimulate the local economy.

In the 2023/24 financial year, the CTICC contributed R6.9 billion to the national GDP and R6.5 billion to the Western Cape Gross Geographic Product (GGP).

Over its lifetime, it has generated R66.9 billion in cumulative national economic contributions and R58 billion to the Western Cape GGP.

“The CTICC’s contribution to job creation and economic growth over the past year has been impressive,” said Western Cape Premier Alan Winde.

“It staged and hosted a record number of international events, providing a vital platform for economic activity and foreign direct investment.”

“Every international visitor to the Western Cape brings much-needed direct tourist spend, boosting our GDP and creating jobs,” said Winde.

During the 2023/2024 financial year, it hosted 368 events, bringing in 785,393 delegates and attendees. it includes 55 national conferences and 43 international conferences.

It also hosted 36 banquets, 21 special events, 8 exhibitions, 23 film and photoshoots, 15 trade fairs, and 165 other events.

Key figures of the CTICC for the 2023/24 financial year.

Former CTICC chairperson Deon Cloete said that contributions to job creation rose accordingly, to 12,721 employment opportunities created in the country in the year under review.

“These are great figures and a happy legacy,” said Cloete. “Revenue is not our only focus; it’s about how we use it to make a meaningful impact,” said CTICC CEO Taubie Motlhabane.

“While it allows us to invest strategically in maintaining our world-class offering, what truly matters is how we channel those funds to enable our reason for existence. “

“Our ‘why’ or our ‘purpose’ says it best – ‘to accelerate economic prosperity, opportunity, inclusivity, creativity and innovation,” added Motlhabane.

According to Martin Hiller, Portfolio Director of FAME Week Africa, “The CTICC has been integral [in] supporting the growth of African creative industries while connecting professionals and communities.”

Looking ahead, the CTICC said that it aims to elevate its impact beyond economic contributions by integrating social and environmental considerations into its operations.

A key aspect of the CTICC’s forward-looking approach involves exploring opportunities beyond the hospitality industry and integrating digital solutions with physical infrastructure.

It has secured 13 new international conferences, and 64 events are confirmed from January 2025 to November 2030.

This is expected to support the catalytic investment sectors of the City of Cape Town and the Western Cape Government.

“As the world changes, convention centres are facing challenges that require new or better strategies of doing business to remain relevant and resilient,” said Motlhabane.

“These challenges include inflation, cybersecurity, staffing, client expectations, venue adaptability and the growing importance of sustainability.”

“These challenges require innovative strategies for the future, and the CTICC is ready to face them, confident in our ability and agility to do so successfully,” she added.