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MEC upbeat about Eastern Cape economy
Posted on: Thursday, 08 December 2005. Article source: The Herald
The economic tide in the Eastern Cape is turning, says Economic Affairs, Environment and Tourism MEC Andre de Wet.
He was responding to figures released yesterday by Stats SA that showed the province’s economy grew 4,6 per cent last year. National GDP growth last year was 4,5%.
“I am confident we have started a cycle of sustainable growth, bringing about a focus on the Eastern Cape that we haven’t had before,” said De Wet.
The province’s GDP was recorded at R112,9-billion, up from little more than R100-billion the year before, and less than R75,5-billion in 2000.
“I believed we could achieve higher figures,” said De Wet. “We need to look at our population spread and low contribution from the eastern parts of the province.
The challenge is still huge there,” he said. “I am of the opinion that the tide is turning and the outlook is far brighter than a year or two ago.”
De Wet said the investment climate was far more conducive to attracting a steady stream of investments in the province, with Coega seen as a major driver.
According to the statistics released yesterday, the Eastern Cape was one of only four provinces to exceed the national growth rate. At the top of the list was the Western Cape with 5,3% growth, followed by KwaZulu Natal and North West – each growing at 4,9%.
The largest sector decline last year in the Eastern Cape was in the agriculture, forestry and fishing category, which fell 5,9% after falling 4,3% in 2003 and a massive 11,2% in 2002.
De Wet said he was surprised to hear of this continuing decline and said it would depend on how this sector was classified by the statistics body.
“The prospect for future agricultural growth is huge,” he said.
One hurdle could have been that maize was not reaching the markets, he surmised.
“There was no access to the mills. We’ve now opened up one mill in the eastern area, and the farmers have a shareholding in it as well. They will effectively be able to get the maize to the mill and the market,” said De Wet.
Another area of interest in the data was the leap in the contribution from manufacturing. This was recorded at 6,8% growth after contracting 2,2% in 2003.
Construction figures, while still positive at 8,8% growth were down from 30% growth in 2003. This could be ascribed to the completion of most of the bulk infrastructure work in the Coega IDZ, so would be likely to fall further in coming years.
Finance, real estate and business services also showed strong growth at 8,3%.
Percci president Dave Coffey said yesterday this showed that businesses were investing capital to operate more effectively in an increasingly competitive market.
He was responding to figures released yesterday by Stats SA that showed the province’s economy grew 4,6 per cent last year. National GDP growth last year was 4,5%.
“I am confident we have started a cycle of sustainable growth, bringing about a focus on the Eastern Cape that we haven’t had before,” said De Wet.
The province’s GDP was recorded at R112,9-billion, up from little more than R100-billion the year before, and less than R75,5-billion in 2000.
“I believed we could achieve higher figures,” said De Wet. “We need to look at our population spread and low contribution from the eastern parts of the province.
The challenge is still huge there,” he said. “I am of the opinion that the tide is turning and the outlook is far brighter than a year or two ago.”
De Wet said the investment climate was far more conducive to attracting a steady stream of investments in the province, with Coega seen as a major driver.
According to the statistics released yesterday, the Eastern Cape was one of only four provinces to exceed the national growth rate. At the top of the list was the Western Cape with 5,3% growth, followed by KwaZulu Natal and North West – each growing at 4,9%.
The largest sector decline last year in the Eastern Cape was in the agriculture, forestry and fishing category, which fell 5,9% after falling 4,3% in 2003 and a massive 11,2% in 2002.
De Wet said he was surprised to hear of this continuing decline and said it would depend on how this sector was classified by the statistics body.
“The prospect for future agricultural growth is huge,” he said.
One hurdle could have been that maize was not reaching the markets, he surmised.
“There was no access to the mills. We’ve now opened up one mill in the eastern area, and the farmers have a shareholding in it as well. They will effectively be able to get the maize to the mill and the market,” said De Wet.
Another area of interest in the data was the leap in the contribution from manufacturing. This was recorded at 6,8% growth after contracting 2,2% in 2003.
Construction figures, while still positive at 8,8% growth were down from 30% growth in 2003. This could be ascribed to the completion of most of the bulk infrastructure work in the Coega IDZ, so would be likely to fall further in coming years.
Finance, real estate and business services also showed strong growth at 8,3%.
Percci president Dave Coffey said yesterday this showed that businesses were investing capital to operate more effectively in an increasingly competitive market.
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