Regional overview of the Western Cape

The Western Cape stretches from the dry north-western coast to the heavily forested Garden Route regions of the Southern Cape via the rugged mountains of the Cedarberg, the rolling winelands of the Boland by John Young and the Overberg, the fertile valleys of the Klein Karoo and the wide plains of the Great Karoo. The province and the region are most commonly associated with Table Mountain, which watches over the city of Cape Town and forms a national park of its own.

The major contributors to the Western Cape’s gross domestic product (GDP), as outlined by Stellenbosch University’s Bureau for Economic Research in 2007, are: finance, insurance, real estate and business services (30%); manufacturing (17.6%); wholesale and retail, catering and accommodation (16.8%); and transport and communication (11%).

About 50% of the province’s population is Coloured, with blacks (30%) and whites (18%) making up the bulk of the balance. According to the provincial government treasury, in 2005/06 households spent their income mostly on housing, water, electricity and gas (26.7%), transport (20.1%) and food (15.7%).

The Western Cape is well served with infrastructure. Three ports at Saldanha, Cape Town and Mossel Bay serve different markets, and Cape Town International Airport and George Airport see to air-travel needs. The Cape Town International Convention Centre is the province’s leading facility in the events and conference fi eld, which is an area of growth for the province.

Key economic drivers in recent years have been construction, agriculture and the services sector, traditionally the strongest part of the Western Cape economy. Cape Town houses the headquarters of most of the country’s insurance and the petroleum companies. The Western Cape continues to grow in popularity as a tourism destination and the 2010 FIFA World Cup South Africa will accelerate that trend.

Other sectors that are doing well are film, ICT and various marine sectors, including the servicing of the African oil and gas exploration industry. The Western Cape comprises the City of Cape Town Metropolitan Municipality and five district municipalities, each with their own unique characteristics.

City of Cape Town Metropolitan Municipality
Cape Town and its economy is described more fully in the following article devoted to three special cities in the Western Cape. The maritime sector is a vital part of the province’s (and city’s) economy – and is intrinsic to Cape Town’s identity. The first part of a project to deepen parts of the Port of Cape Town was carried out in 2009, and four massive new ship-to-shore Liebherr cranes were installed.

At the container terminal, capacity is set to be doubled by 2012. With more than R4-billion already spent, four rubber-tyred gantry cranes (RTGs) are in place, with 28 more to follow.

The dry dock is an important element in the ship-repair industry, which has seen the merger of engineering firm DCD-Dorbyl Marine and shiprepair concern Globe Engineering Works.

The new company’s investment in facilities will help to make Cape Town more competitive in the oil-rig repair-and-refurbishment market.

Transnet’s new cold-storage facility at the Multipurpose Terminal came on stream in 2009. Built at a cost of R45-million and including a precooling facility for fruit sterilisation, it will assist the Cape fruit export industry to stay competitive.

West Coast District Municipality
Towns: Saldanha, Malmesbury, Clanwilliam, Vredenburg, Moorreesburg

The economy of this region is quite diverse: manufacturing in Saldanha, Atlantis and Malmesbury, agriculture and forestry centred on inland towns like Moorreesburg (wheat) and Cederberg (forestry), citrus farming (Citrusdal), cement-making in Riebeek West and Piketberg, and marine activity and fishing all along the coast. The rooibos tea sector is a feature of Clanwilliam’s economy, while shoe manufacturers can also be found in the town. The remote Wupperthal is famous for its veldskoene (leather shoes).

Saldanha is one of South Africa’s busiest ports. Apart from being home to several companies’ trawler fleets, it is the principal ironore export port and is gearing itself to service the continent’s oil and gas industry and to be a steel-manufacturing hub.

Mining is becoming an increasingly important sector, with titanium, zirconium, phosphate and limestone being among the most important finds in the region.

Cape Winelands District Municipality
Towns: Stellenbosch, Paarl, Worcester, Robertson, Wellington, Franschhoek

Nearly 70% of South Africa’s wine comes from this area. A good percentage of this wine is exported, but the wine estates themselves attract tourists, which in turn boosts the leisure industry. Tourism in the Winelands has matured beyond day trips from Cape Town to incorporate wellness spas, adventure tourism and even game farms boasting the Big Five.

Manufacturing is concentrated on processing grapes and fruit into wine, juice, brandy, and dried- and tinned-fruit products. Dairy manufacturer Parmalat has an award-winning cheese-making facility in Bonnievale.

Robertson is known for roses and thoroughbred horses. Stellenbosch is home to its eponymous university and houses the headquarters of several large companies such as British American Tobacco.

Overberg District Municipality
Towns: Caledon, Bredasdorp, Hermanus, Swellendam

The Overberg contains the southernmost tip of Africa (Cape Agulhas), the oldest mission station in South Africa (Genadendal), a large casino resort (in Caledon) and some of the best whale viewing in the world (Hermanus). It also hosts some high-quality fruit farms in the Ceres Valley and rural villages that are popular with tourists such as Barrydale and Greyton.

Agriculture is the principal economic activity of the region, with wheat, dairy, deciduous fruit and onions being among the main products. Barley, hops and flower cultivation are among the crops that are growing in popularity with local farmers, in response to international demand.

Eden District Municipality
Towns: George, Oudtshoorn, Calitzdorp, Knysna, Mossel Bay, Plettenberg Bay

The area is known as the Cape Garden Route and Klein Karoo for tourism purposes – and tourism is a major economic activity for the region (making up 15% of gross geographical product). Community services, financial, property and business services, manufacturing and agriculture are the other main services. Mossel Bay is home to South Africa’s main gas-processing plant, while George is a node of manufacturing, trade and administration. The Nelson Mandela Metropolitan University has a campus in George. Knysna and Plettenberg Bay are favourite tourist destinations.

The Klein Karoo has its own wine route, and contains the country’s Port Capital in Calitzdorp, which hosts an annual festival to celebrate its main product. Fruit, vegetables and ostriches are other main products of the Klein Karoo.

Central Karoo District Municipality
Towns: Beaufort West, Laingsburg, Prince Albert

The largest district in the province has the smallest population, a reflection of the semidesert conditions that prevail in the area named ‘thirst land’ by its original inhabitants. Sheep farming predominates in the region.

Beaufort West is strategically positioned on the N1 highway, which links Cape Town to the interior of South Africa. The nearby Karoo National Park is a national asset that aims to reclaim the original flora of the Karoo.

Prince Albert is a quaint town situated in the shadow of the Swartberg Mountains. It is a popular tourist destination and is close to the dramatic portals that link the Karoo to the Klein Karoo: Seweweekspoort, the Swartberg Pass and Meiringspoort.