Johannesburg – Economic activity in South Africa continues to be concentrated in three provinces – Gauteng, KwaZulu-Natal and Western Cape – data from Statistics South Africa show.
The agency zoomed in on 2019 gross domestic product (GDP) and found economic activity varies across towns, cities and regions.
There was economic expansion in the three-largest provinces (in terms of GDP) in 2019 with Gauteng, Western Cape and KwaZulu-Natal accounting for 64% of the country’s GDP.
The study further shows that Northern Cape recorded the most significant decline in economic output, followed by North West. “Both economies were dragged lower mainly by the poor performance of mining and agriculture,” statistician-general Risenga Maluleke said.
“In fact, mining is the largest industry in both provinces, as well as in Limpopo and Mpumalanga. Any major movements in mining activity will affect the economic fortunes of these provinces, with corresponding consequences for the living conditions of the people.”
Gauteng recorded the highest provincial growth rate.
The 0.6% rise in economic activity in the economic hub of the continent was mainly driven by finance, real estate and business services, which is the dominant industry in the province.
Adrian Saville, the chief executive of Cannon Asset Managers, said new entrants could also promote geographic deconcentration in the country’s economy.
“To this end, almost all economic activity in South Africa takes place in a few economic centres [Gauteng, Cape Town, Durban and Nelson Mandela Bay),” said Saville.
“New entrants could promote investment and economic activity in a fashion that reduces this exceptionally high level of geographic concentration that continues to represent the structure of the apartheid economy.
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