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PE “one of the fastest growing areas in SA”
Posted on: Wednesday, 29 June 2005. Article source: Weekend Post
The Nelson Mandela Metro is emerging as one of Africa’s powerhouses – and one of the most important areas on the continent for future economic development.
Dubbed as one of the fastest growing areas in South Africa, the metro is experiencing its best growth yet in the past five years. Economic growth in the metro last year, at five percent, was much higher than the national average of three percent.
And economists say the trend is set to continue with increased investment in business and Port Elizabeth’s CBD.
They attribute the surge to centralisation of industry to the coast, good infrastructure, tourism growth and predictions that the metro is set to soon become South Africa’s export hub, due to the harbour development at Coega.
The Coega Development Corporation announced its first tenant last month – R200-million from a high-niche Belgian textile company which will eventually create up to 1 200 jobs. Another major tenant is due to be announced next week, and the CDC says a further 75 deals are under negotiation.
East Cape Development Corporation chief executive Kevin Wakeford said: “In general Port Elizabeth is certainly one of the key cities of the future in Africa, if not the world. It is a place that people are looking at for fortune and opportunity.”
Because of a centralisation of industry to the coast, he said, as well as purpose-built infrastructural developments like Coega and general infrastructure developments in retail and tourism, the metro and surrounding areas were gaining the confidence of private investors.
Port Elizabeth Regional Chamber of Commerce and Industry chief executive Alfred da Costa said the growth within the metro business sector had been very encouraging, with sectors such as the automotive industry and tourism showing double- digit growth.
In April, General Motors invested R750-million for the Hummer H3 vehicle export, which is expected to bring in R16-billion over the next five years.
In June last year Volkswagen invested R750-million for the manufacture of the Golf 5 for export.
The contract will generate an income of R320-million a month, R4-billion a year and R25-billion over the life cycle of the make of vehicle.
Da Costa said it was encouraging to see that parastatals such as Eskom and Transnet had set aside significant budget allocations to provide for infrastructure development within the region, especially with regards to development at Coega.
“As organised business we urge the local municipality to ensure that local infrastructure development keeps up with the growth of Port Elizabeth,” Da Costa said.
Economic Affairs MEC Andre de Wet said the Eastern Cape “was the place to be” and the metro was its focal point.
“Port Elizabeth has been clearly set as the export hub for South Africa and it will develop as such.” De Wet said the Coega development would help the metro gain even more ground economically.
“The metro has the right development right on its doorstep. Coega is one of the most exciting developments for manufacturing that this country has ever seen. We have already had the first investor and there is talk of other investors.
“I think we are standing on the brink of what is going to be a very prosperous time for the metro,” De Wet said.
Nelson Mandela Metro spokesman Kupido Baron said although there were no statistics to prove it, the metro considered Port Elizabeth to be one of the fastest growing cities in the country.
“Last year we grew at nearly five percent – higher than the national average of three percent.”
Port Elizabeth economic analyst Dr Neal Bruton is in Australia and could not be reached for comment, but Baron said Bruton had told the metro he expected that for the remainder of 2005, barring any unforeseen negative developments, economic circumstances were likely to continue at buoyant levels.
Baron said the current economic boom was having a positive effect on population growth in the metro, but said there were various factors which made it difficult to determine the exact growth over the next few years.
“We estimate a 1,9 percent an annum population growth at the moment.
“However, a study is being commissioned to determine exactly what the population growth and trends are likely to be in the future, with specific reference to our Vision 2020 campaign.
“We are uncertain of the impact of HIV/Aids and immigration and the study will try to quantify this.”
Baron said the population growth was linked to urbanisation caused by the economic boom.
“There is a trend that people from other areas in the province are coming to the metro, with the hope of getting better job opportunities,” he said.
The metro has no accurate census figures of the population size, but a study by the metro in 1998 projected a population size of 1,2 million by 2000.
Madiba Bay Development Agency chief executive Pierre Voges warned that it was important to remember that development in the metro was starting from a low base.
Voges said the new economic growth in the metro was a “diverse type of growth” and was being driven by an increase in the number of people from emerging sectors of the community entering the economy.
Since 1994 there had been a gradual upsurge in the number of black people entering the economy, but growth had been faster in other parts of the country, he said.
“The Eastern Cape has been slower at adapting to the new challenges which face South Africa but it is definitely catching up,” he said.
“You will find more economic growth in the metro at the moment in comparison to the last five years. The most important thing about this growth is the metro has a majority black population and more and more of these people are entering the economy every day.
“I believe the growth in Port Elizabeth’s city centre will be led by more and more black people getting into the mainstream economy.”
Voges said this emerging market would drive development within the city centre.
But while the mood in the metro is bullish and investor confidence is growing, employment remains one of the major problems.
A key challenge for the metro has been to balance short-term job creation with long-term economic stability.
Unemployment has increased from 35 per cent in 2000 to the current figure of 40 per cent this year, peaking at 43 per cent in 2003
Dubbed as one of the fastest growing areas in South Africa, the metro is experiencing its best growth yet in the past five years. Economic growth in the metro last year, at five percent, was much higher than the national average of three percent.
And economists say the trend is set to continue with increased investment in business and Port Elizabeth’s CBD.
They attribute the surge to centralisation of industry to the coast, good infrastructure, tourism growth and predictions that the metro is set to soon become South Africa’s export hub, due to the harbour development at Coega.
The Coega Development Corporation announced its first tenant last month – R200-million from a high-niche Belgian textile company which will eventually create up to 1 200 jobs. Another major tenant is due to be announced next week, and the CDC says a further 75 deals are under negotiation.
East Cape Development Corporation chief executive Kevin Wakeford said: “In general Port Elizabeth is certainly one of the key cities of the future in Africa, if not the world. It is a place that people are looking at for fortune and opportunity.”
Because of a centralisation of industry to the coast, he said, as well as purpose-built infrastructural developments like Coega and general infrastructure developments in retail and tourism, the metro and surrounding areas were gaining the confidence of private investors.
Port Elizabeth Regional Chamber of Commerce and Industry chief executive Alfred da Costa said the growth within the metro business sector had been very encouraging, with sectors such as the automotive industry and tourism showing double- digit growth.
In April, General Motors invested R750-million for the Hummer H3 vehicle export, which is expected to bring in R16-billion over the next five years.
In June last year Volkswagen invested R750-million for the manufacture of the Golf 5 for export.
The contract will generate an income of R320-million a month, R4-billion a year and R25-billion over the life cycle of the make of vehicle.
Da Costa said it was encouraging to see that parastatals such as Eskom and Transnet had set aside significant budget allocations to provide for infrastructure development within the region, especially with regards to development at Coega.
“As organised business we urge the local municipality to ensure that local infrastructure development keeps up with the growth of Port Elizabeth,” Da Costa said.
Economic Affairs MEC Andre de Wet said the Eastern Cape “was the place to be” and the metro was its focal point.
“Port Elizabeth has been clearly set as the export hub for South Africa and it will develop as such.” De Wet said the Coega development would help the metro gain even more ground economically.
“The metro has the right development right on its doorstep. Coega is one of the most exciting developments for manufacturing that this country has ever seen. We have already had the first investor and there is talk of other investors.
“I think we are standing on the brink of what is going to be a very prosperous time for the metro,” De Wet said.
Nelson Mandela Metro spokesman Kupido Baron said although there were no statistics to prove it, the metro considered Port Elizabeth to be one of the fastest growing cities in the country.
“Last year we grew at nearly five percent – higher than the national average of three percent.”
Port Elizabeth economic analyst Dr Neal Bruton is in Australia and could not be reached for comment, but Baron said Bruton had told the metro he expected that for the remainder of 2005, barring any unforeseen negative developments, economic circumstances were likely to continue at buoyant levels.
Baron said the current economic boom was having a positive effect on population growth in the metro, but said there were various factors which made it difficult to determine the exact growth over the next few years.
“We estimate a 1,9 percent an annum population growth at the moment.
“However, a study is being commissioned to determine exactly what the population growth and trends are likely to be in the future, with specific reference to our Vision 2020 campaign.
“We are uncertain of the impact of HIV/Aids and immigration and the study will try to quantify this.”
Baron said the population growth was linked to urbanisation caused by the economic boom.
“There is a trend that people from other areas in the province are coming to the metro, with the hope of getting better job opportunities,” he said.
The metro has no accurate census figures of the population size, but a study by the metro in 1998 projected a population size of 1,2 million by 2000.
Madiba Bay Development Agency chief executive Pierre Voges warned that it was important to remember that development in the metro was starting from a low base.
Voges said the new economic growth in the metro was a “diverse type of growth” and was being driven by an increase in the number of people from emerging sectors of the community entering the economy.
Since 1994 there had been a gradual upsurge in the number of black people entering the economy, but growth had been faster in other parts of the country, he said.
“The Eastern Cape has been slower at adapting to the new challenges which face South Africa but it is definitely catching up,” he said.
“You will find more economic growth in the metro at the moment in comparison to the last five years. The most important thing about this growth is the metro has a majority black population and more and more of these people are entering the economy every day.
“I believe the growth in Port Elizabeth’s city centre will be led by more and more black people getting into the mainstream economy.”
Voges said this emerging market would drive development within the city centre.
But while the mood in the metro is bullish and investor confidence is growing, employment remains one of the major problems.
A key challenge for the metro has been to balance short-term job creation with long-term economic stability.
Unemployment has increased from 35 per cent in 2000 to the current figure of 40 per cent this year, peaking at 43 per cent in 2003
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