The health of the retail industry is a fair indication of the state of commerce in the Western Cape and with strong results and successful Christmas trading, the Western Cape is positioned for a bullish 2004.

The usual slow beginning for Cape Town commerce looks to be in for a turnaround this year, as early indicators point to strong ICT opportunities in the region.

According to newly appointed regional chief executive of Comparex Africa Western Cape, Philip Savides, the knock-on effect of good performance in the retail sector is being felt in associated industries, making for a promising year. 

“Last year was a positive one for the retail sector and we have already seen the knock-on effects in industries associated to the sector.  In particular, the local manufacture and transport and distribution industries have seen immediate benefits of the mini-boom,” explains Savides. 

Savides believes the financial and banking sectors will also experience a lift as a result of the better than normal retail trading. 

“The increased revenue will also mean good news for the financial industry as clients are making good use of the various financial vehicles available to them.  We have seen a bullish attitude at the start of this year and Cape Town, as a whole, seems to have launched into the New Year with much more vigour than is usually the case,” he says. 

A long-time resident and active business participant in the Western Cape area, Savides says it is unfortunate that the region has a reputation as a late starter and expects the increased opportunities to negate the usual lacklustre commercial atmosphere common at this time. 

“The ICT industry is well positioned to see the overall economic picture.  Due to working closely with our clients, we have intimate knowledge of their businesses and business environments.  We also understand the broader economic trends based on business enquiries. 

“As a result of the increased business demand, ICT infrastructure and support has become critical.  Streamlining business operations during periods of high demand becomes a necessity.  The ability to access and, more importantly, make sense of key data can make or break a company’s ability to meet its objectives. 

“Knowledge management and business intelligence have become mission critical business tools and Comparex Africa has seen the demand right across the market.  Even the smaller businesses are acknowledging the need to install and run systems, which can automate key functions along the supply and delivery chains.  In a robust market, optimising delivery will be the key differentiator and we have experienced a marked increase in queries for assistance in these areas.” 

Savides also notes that while the public sector spend still remains relatively low; strong regional government direction will soon experience an increase in the need for information systems throughout the greater region. 

“All in all, we expect good trading this year, a welcome respite for a market which has, until now, lagged on the national economic upswing,” Savides concludes.