By Charles Molele
The DA in the Western Cape says the province’s economy is projected to expand by 1% in 2024, following a 0.6% growth in 2023.
This comes after the release of the report of the Municipal Economic Review and Outlook (MERO).
Dave Bryant, MPP – DA Western Cape Spokesperson on Local Government, Environmental Affairs and Development Planning said the Western Cape boasts an economy that is not only growing but also demonstrating resilience in the face of national and global challenges.
“Projected economic growth of 1% in 2024, following 0.6% in 2023, places the province ahead of the national average, driven by diverse and thriving sectors,” said Bryant.
“This positive trajectory positions the Western Cape ahead of the national average and reflects the success of diverse sectors contributing to the provincial economic landscape.”
Bryant said small, micro, and medium-sized enterprises (SMMEs) are central to the Western Cape’s economic dynamism.
With nearly 300,000 SMMEs contributing significantly to GDP, these enterprises drive innovation, job creation, and development, particularly in rural areas where their impact is profound.
The province’s export sector reached R202.1 billion in 2023, an 8.7% year-on-year increase, with key contributions from oil refining and agriculture.
Bryant said tourism is also rebounding strongly, with over 200,000 international arrivals at Cape Town International Airport in early 2024, marking a 20% rise from the previous year.
He added that the finance, insurance, real estate, and business services sectors remain pillars of the economy, contributing 33.9% to GDP.
Manufacturing and agriculture continue to bolster economic activity, supported by improved business confidence.
The RMB/BER Business Confidence Index rose from 31 in Q2 2023 to 40 in Q1 2024, signaling optimism.
Looking ahead, the Western Cape aims to diversify its economy, strengthen resilience, and sustain inclusive growth, Bryant said: “The MERO showcases the Western Cape’s remarkable resilience and innovation. Our economy is growing and diversifying, benefiting both urban and rural communities through targeted investment, infrastructure development, and job creation. The DA-run provincial government remains committed to improving residents’ quality of life and positioning the Western Cape as a leader in sustainability and inclusive growth.”
The Western Cape also boasts South Africa’s lowest unemployment rate, dropping to 19.6% in Q3 2024, the first time in a decade it has fallen below 20%, according to Bryant.
Job creation in agriculture, manufacturing, and tourism—coupled with R7.75 billion in investments across 14 projects by Wesgro—has been pivotal in this achievement.
Beyond Cape Town, rural districts like Overberg and the Garden Route are thriving.
The Overberg district contributes 3.4% to the provincial GDP, driven by agriculture and tourism, while the Garden Route accounts for 7.6%, aided by infrastructure improvements and a tourism resurgence. Visitor numbers in these areas have risen by 20% year-on-year, underscoring the sector’s recovery.
“These districts also report substantial social development gains, with Human Development Index (HDI) scores of 0.72, reflecting better living standards and economic opportunities. Investments in rural infrastructure and climate resilience projects further support sustainable growth in these regions,” said Bryant.
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