"Cape Town and Durban are basically villages."

[duncan drennan]

“Cape Town and Durban are basically villages.�

That's the last line of the article, "The death of Cape Town?" on the M&G

There's only so much Cape Town can do in the face of the juggernaut that Gauteng is becoming. About 50 large corporates have chosen to base themselves in the Western Cape, including Pick 'n Pay and Remgro. These numbers are dwarfed by the 600 or so large corporates, including multinationals, who choose to base their South African or even African operations in Johannesburg.

With a third of South Africa's GDP and 10% of Africa's GDP produced by the province, Gauteng's importance as an investment destination is steadily increasing. Businesses need to be where their major clients are, and a large city region makes for easier networking, greater choice and more services. It may also be easier to recruit skilled professionals in Gauteng, where salaries are traditionally higher.

With globalisation, the internet and so on, does this argument really make sense?

There are certain economic arguments that can be made, but when it comes down to it, how many people really want to stay in Gauteng? Obviously if you are in a debt trap or financially strapped that's where you're going to get locked in, but if it comes down to choice of lifestyle what would you choose?

Another argument against this that I've heard is that companies that are mainly creative in the make up of their business should choose the best environment to attract the best people, who will work better in a good environ - heard that from a German client. I would tend to agree.