INVESTMENTS: Wesgro Lures R47m For Cape Town
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Wesgro, the investment and trade promotion agency of the Western Cape, facilitated the investment process for the pioneering security solutions firm, Trusted Logic. The investment will lead to the opening of a subsidiary called Trusted Logic Africa in Cape Town and will contribute to the continued confidence by investors in the Western Cape economy.
Despite low global GDP figures and strains on employment numbers, the global economy is starting to show some signs of recovery.
According to Paul Krugman, Nobel Laureate and Professor of Economics at Princeton University, the global economy is at a turning point but will take at least another two years before a full recovery can be seen.
According to Wesgro CEO, Angelo Manzoni “The ICT industry in South Africa currently accounts for roughly 3.0% of GDP and is expected to remain at those levels until 2013 when it is expected to be worth an estimated US $13, 453 billion.”
Manzoni explains, “A number of factors drove spending on IT in 2008, despite the global economic slowdown. The 2010 World Cup has had an impact not only in terms of investments in IT systems directly linked to the event, but those driven by associated investments in areas such as infrastructure. The CTIA, Gautrain rapid rail link and La Mercy International Airport are examples of ambitious transport projects that involve considerable IT layout”
“The Western Cape ICT industry is highly diverse with many niche segments and role players. The industry has approximately 3 000 companies with most of these being micro and small businesses. More specifically, there are over 200 IT & Software companies in Cape Town, employing 7 500 staff. Cape Town offers investors a cost competitive location for ICT and quality levels similar to Europe and other leading destinations” says Manzoni.
Minister Winde was encouraged by the fact that Trusted Logic viewed Cape Town as a gateway from which to market this international company to the rest of Africa and the Middle East. He said that government would do its part to grow the workforce necessary for such investments by providing opportunities for youths to skill themselves. MEC Winde thanked Wesgro for the role that they played in securing the investment, and congratulated them on their achievement.
Trusted Logic specializes in security solutions for digital services which range from mobile payment to e-ticketing, enabling end-users to safely access services anywhere at anytime. A leading provider of open secure software for smart cards, terminals and consumer devices, Trusted Logic creates the foundations for converging digital services at the crossroads of telecom, banking, transport and government.
The investment is valued at R47.5 million and is set to create an estimated 36 jobs over the next five years. This innovative security company is just one of the many lucrative businesses Wesgro has already attracted to the Mother City.
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