The Cape economy is very strong in the clothing, textile, agricultural, tourism, fishing and ship repair sectors. If Namaqualand is included then we can also talk about abundant mineral resources. Off the west coast are large unexploited gasfields, which indicates that there are probably oilfields as well. Additionally, a number of large financial and other commercial institutions have their headquarters in the Cape.
It is interesting to review some of the latest statistics available.
- Western Cape contribution to South Africa’s GDP 14,4%
- Share of South Africa’s population 10,1%
- Share of Revenue from national fiscus 9.0%
- Growth rate of Western Cape economy 5.3%
- Growth rate of National economy 4.5%
- NB All other provinces have a lower growth rate.
It can be seen from the above figures that the Western Cape is subsidising provinces such as the Eastern Cape. This is despite the fact that we are already subsidising large numbers who have migrated into the Western Cape from the Eastern Cape.
If we were to cease subsidising other provinces the revenue saved could be spent on social and economic development in the Western Cape.
Apart from the above it should be remembered that there are no benefits in remaining part of an economy that is increasingly in danger from corruption, mismanagement, and bad governance. This raises the critical question “ For how much longer is the South African economy viable? “