The Eastern Cape has abundant and varied resources to build a prosperous future. Varying topographical and climatic conditions contribute to a diverse agricultural offering that includes wool, mohair, dairy and forestry. The province’s location, on the south-eastern coast of Africa, is proving to be an international asset, and the allocation of two of South Africa’s five industrial development zones (IDZs) to the province is confirmation of the potential that resides in catering to the shipping traffic that operates between Europe and Asia and the Far East.

The province is well served logistically, with two major airports in Port Elizabeth and East London, and several facilities serving smaller towns such as Mthatha and Bhisho. In addition, many farms and private game reserves have airstrips. The construction of the large new port at Nqura, within the Coega IDZ, brings to three the number of effective ports operating in the Eastern Cape.

The current ports in East London and Port Elizabeth play a vital role in the export of the Eastern Cape’s most important manufactured product – motor vehicles. Collectively, the province’s automotive producers export just more than half of the motor vehicles produced in South Africa. The companies that operate in the Eastern Cape are Mercedes-Benz SA (East London), Volkswagen (Uitenhage), and General Motors South Africa and Ford, both in Port Elizabeth. The Ford plant assembles engines. These operations support many subsidiary industries such as pressed steel, plastics, and leather for car seats. Port Elizabeth, one of only five metropolitan municipalities in South Africa, has become a world leader in the production of catalytic converters.

The city is also positioning itself as a tourist hub and access point to the Garden Route and Addo Elephant National Park, the largest of the four national parks in the province. The Eastern Cape boasts more than a dozen provincial parks and a growing number of private game farms, lodges and reserves. The province’s beaches and waves are also a main attraction, with adventure tourism luring in tourists wanting to go on 4x4 trails, jump off bridges or fly microlight aircraft.

Contrasts
The contrasts inherent in the Eastern Cape are not, unfortunately, restricted to the varied natural landscape. There is also a sharp divide between the well-developed areas and poorer regions. The development divide coincides with the now-redundant borders of the old apartheid entities, the homelands of Ciskei and Transkei, in the area collectively known as the Wild Coast.

Fortunately, this area is rich in natural resources. The potential for new timber plantations is enormous, and tens of thousands of hectares are being targeted. Much of the agricultural land of the former homelands is fertile but underutilised.

The Umzimvubu Basin Management and Development Programme is a multifaceted programme designed to uplift the eastern region. It covers hydroelectric power generation, water supply, environmental protection and sustainable land use. The Accelerated Shared Growth Initiative for South Africa (AsgiSA) is the driver of the project, which includes integrated crop management and livestock improvement.

The other great natural asset in the eastern region is the Wild Coast. Exactly how best to exploit this asset is the subject of some debate. Everyone agrees that ecotourism is a good way to provide long-term development. However, titanium-group minerals have also been discovered under the dunes in the Pondoland region.

In 2008, the then Department of Minerals and Energy granted Australian mining company Mineral Commodities the right to mine one of four coastal blocks near Xolobeni. This created an outcry among those who felt it would compromise efforts to market the Wild Coast as a pristine site for ecotourism. The licence has since been suspended and the issue is yet to be resolved.

In numbers
The Eastern Cape extends over 169 580 square kilometres, representing 13.9% of South Africa’s land mass. The province has more livestock thanany other province, with a fifth of the country’s cattle, a quarter of its sheep and nearly half its goats.

The provincial economy’s gross domestic product (GDP) in 2003 was estimated to be R88-billion, 8.1% of South Africa’s GDP (Statistics South Africa). The Eastern Cape Development Corporation reports that 28% of the province’s economy is taken up by central government services, real estate and business services account for 17.9%, and manufacturing 17.3%.

The province’s population of 6.9 million makes it the country’s third-most populous province, with about 15% of the national population. The overwhelming majority – more than 80% – of people speak Xhosa, with Afrikaans, English and Sotho (near the Lesotho border) as the other major languages. The Xhosa people have many chiefdoms or clans, and three kings are recognised: King Zwelonke Mpendulo Sigcawu of the Gcaleka; King Buyelekhaya Dalindyebo of the Thembu and King Mpondombini Sigcau of Eastern Pondoland. Three other claimants for the title of king had their claims rejected by a national commission in 2008. Nelson Mandela is a Thembu, while his former wife, Winnie Madikizela-Mandela, is a Pondo.

Alfred Nzo District Municipality
Towns: Matatiele, Mount Frere, Mount Ayliff
The smallest district is located in the mountainous northeast, with hiking trails being an attraction for tourists. Subsistence agriculture and forestry are the major economic activities.

Amathole District Municipality
Towns: East London, King William’s Town, Bhisho, Bedford, Adelaide, Peddie, Butterworth
This is a large and economically important district. East London and King William’s Town supply most of the district’s manufacturing capacity. Parts of the area are good for cattle and sheep rearing, and some pineapple production exists. Many farms have been converted to game farms or private game reserves. The 45 000-hectare Greater Fish River Conservancy Area is but one example of efforts to preserve the natural environment.

Cacadu District Municipality
Towns: Graaff-Reinet, Cradock, Humansdorp, Jeffreys Bay, Grahamstown
The western part of the province contains the biggest municipality and is one of the biggest contributors to provincial GDP. Large commercial farms in the Karoo produce quality meat, wool and mohair, while the coastal belt has dairy farming and some forestry. The Kouga Valley is a big deciduous fruit producer, while the area around Kirkwood/Addo is known for its citrus.

Cacadu has three of the region’s national parks (Camdeboo, Tsitsikamma and Addo Elephant) and several private game farms. Grahamstown is the venue of the National Arts Festival, while Jeffreys Bay is reputed to be the top surfing spot in the world.

Chris Hani District Municipality
Towns: Middelburg, Molteno, Dordrecht, Queenstown, Lady Frere, Elliot
Sheep farming is an important part of the economy. Some coal is found in the north and tourist activities include fly-fishing. The Nola factory in Molteno manufactures Ouma rusks. The Grootfontein Agricultural College and Research Station is in Middelburg, and the Marlow Agricultural College is near Cradock.

OR Tambo District Municipality
Towns: Mthatha, Coffee Bay, Port St Johns, Qumbu, Bizana, Flagstaff
OR Tambo District Municipality encompasses some of the province’s least-developed areas and contains one of South Africa’s most important ecological areas, the Pondoland Centre of Plant Endemism. Mining is already pursued in some areas, but plans to allow titanium mining on seaside dunes are being contested. There is great potential for tourism. A Wild Coast Spatial Development Initiative exists to plot further development. Magwa Tea Estate and forestry concerns are among the biggest employers.

uKhahlamba District Municipality
Towns: Aliwal North, Burgersdorp, Lady Grey, Rhodes, Barkly East, Ugie
Cattle and sheep farming make up 80% of land use, while commercial forestry is a big contributor to employment. The hot springs at Aliwal North and skiing at Tiffendell are two major tourist attractions.