In theorising the rapid expansion of urban agglomeration across the world, a significant body of work has examined the transformation of scale from the perspective of geographical size and the regulatory facets of devolved power. A further literature has examined what are seen as the relational dimensions in the transformation and constitution of space and the extent to which these are socially constructed. In this conceptualisation, scale is constituted and reconstituted by capitalist relations of production, social production, and consumption. The influence of capitalist relations on scale has most explicitly been illustrated by the impact of globalisation and the way it has served to weaken the regulatory powers of nation states and is simultaneously reordering the hierarchy of government power within them. Metropolitan governments have been exposed to global markets and to the influence of transnational corporations and, in a process of glocalisation, increasingly endeavour to create an entrepreneurial environment conducive to attract and retain foreign investment. Hitherto the interpenetration of the global and local has largely been studied in the context of urban agglomeration and scalar transformation in the global North. In an attempt to address this lacuna this article examines the manifestation of the process of glocalisation in metropolitan Cape Town in South Africa in the global South. It posits that the municipal government’s ambition to transform the city into a modern digitally based economy linked to global markets manifests many of the characteristics of glocalisation. Furthermore, it argues, far from promoting greater social inclusion in a highly unequal post-apartheid city, the economic model which has been adopted is exacerbating social inequality and poverty.