The Western Cape has once again demonstrated its economic resilience, emerging as South Africa’s top-performing province in terms of economic growth over the past decade. This is according to the latest provincial Gross Domestic Product (GDP) estimates released by Statistics South Africa, covering the period 2013 to 2024.
In 2024, the Western Cape’s real Gross Domestic Product by Region (GDPR) reached R666.8 billion, accounting for 14.3% of South Africa’s total GDP. The province’s economy grew by 8.7% between 2014 and 2024, ahead of Gauteng (7.7%) and KwaZulu-Natal (7.5%).
Despite challenging national macroeconomic conditions, including sluggish investment, infrastructure constraints, and persistent unemployment, the Western Cape recorded a compounded annual growth rate (CAGR) of 0.83%, outperforming all other provinces. This compares favourably to the national average of 0.67% over the same period.
“This report confirms that the Western Cape is the engine of economic growth in South Africa,” said Minister Meyer. “Our focus on good governance, infrastructure investment, and sectoral development is yielding results.”
Premier Alan Winde added, “We must maintain this momentum if we are to boost growth and job creation. To achieve stronger growth, we remain committed to working even harder in building our province’s economic foundation through stable governance, fiscal discipline, and by attracting more investment to this region.”
The finance, real estate, and business services sector remains the largest contributor to the Western Cape’s economy, accounting for 31.1% of GDP and growing at a CAGR of 2.5%. The personal services sector, which includes education and health, also showed robust growth at 1.3%, reflecting the province’s attractiveness to skilled professionals.
However, the report also highlights areas of concern. Over the ten-year period:
- the Western Cape’s construction sector experienced a compound annual decline of 3.8%, reflecting similar national trends
- the province’s manufacturing sector grew marginally at a CAGR of 0.03%, yet still outperformed the national manufacturing sector, which contracted at a CAGR of -0.58%
These figures underscore the urgent need for targeted interventions to foster an enabling environment that supports economic growth and revitalises these industries, as outlined in the Western Cape’s Growth for Jobs Strategy.
“As we celebrate our achievements, we remain committed to addressing the challenges in our secondary sectors,” Minister Meyer added. “We will continue to work with industry stakeholders to unlock growth, create jobs, and build a resilient, inclusive economy.”
The Western Cape Government remains focused on driving strategic economic development, supporting innovation, and ensuring that the province remains a destination of choice for investment.
Enquiries:
Daniel Johnson
Spokesperson for Minister Ivan Meyer
E-mail: Daniel.Johnson@westerncape.gov.za
Cell: 079 990 4231
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