The latest Eastern Cape Development Corporation (ECDC) Economic Review and Outlook report reveals that the province’s economy remains in crisis, despite recording a 0.3% GDP growth in the fourth quarter of 2024.
While any growth is better than the contraction seen in the third quarter, this marginal increase is simply not enough to address the deep structural challenges facing the province. The Eastern Cape ranked last among all provinces for GDP growth, with gains driven largely by agriculture and tertiary sectors rather than broad-based economic recovery.
This comes against the backdrop of the latest Quarterly Labour Force Survey (QLFS) figures, which show the Eastern Cape still grappling with an official unemployment rate of 36.6% and an expanded unemployment rate of 47.6%. Nearly half of all working-age residents cannot find work or have given up looking, pushing more families into poverty and despair.
GDP growth without meaningful job creation is hollow. Every fraction of economic expansion that does not result in work opportunities is another missed opportunity to restore dignity and hope for the people of our province.
The ECDC report also highlighted the growing threats facing the Eastern Cape economy, warning that the potential loss of AGOA benefits poses a major risk to the automotive sector, which remains a cornerstone of the provincial GDP. Without proactive efforts to diversify export markets through BRICS partners and the African Continental Free Trade Area (AfCFTA), the province risks further job losses and economic decline.
I have written to Premier Oscar Mabuyane to call for clear timeframes and urgent implementation of the Provincial Economic Summit he previously committed to. The summit must also extend beyond a talk shop and deliver a concrete recovery plan with measurable outcomes to fast-track infrastructure delivery, cut red tape for small businesses, fix municipal governance, and unlock jobs in strategic sectors such as agriculture, renewable energy, tourism, and manufacturing.
Where the DA governs, we are seeing real economic gains. The Western Cape recorded 0.8% GDP growth in the fourth quarter of 2024, more than double that of the Eastern Cape. It also maintained its position as the second-largest cargo-handling province, processing over 16 million metric tons through its ports despite a national downturn. These results are no accident. They reflect sound governance, consistent infrastructure investment, and a pro-growth environment that enables business to thrive.
The Eastern Cape can no longer afford excuses. It deserves leadership that delivers. On this Workers’ Day, we must recommit ourselves to the fight for a growing economy that leaves no citizen behind.