Western Cape emerges as South Africa's fastest-growing economy with R666. 8 billion GDP
The Western Cape has cemented its place as South Africa’s fastest-growing provincial economy, with its real Gross Domestic Product by Region (GDPR) reaching R666.8 billion in 2024.
This marks a milestone for the province, which now accounts for 14.3% of the country’s total GDP, according to new estimates released by Statistics South Africa.
Between 2014 and 2024, the province’s economy expanded by 8.7%, outpacing Gauteng (7.7%) and KwaZulu-Natal (7.5%). Despite South Africa’s broader economic headwinds, including sluggish investment, infrastructure challenges, and persistently high unemployment, the Western Cape recorded a compounded annual growth rate (CAGR) of 0.83%, ahead of the national average of 0.67%.
Finance MEC Ivan Meyer said the data confirms the Western Cape’s status as the country’s growth engine.
“This report confirms that the Western Cape is the engine of economic growth in South Africa. Our focus on good governance, infrastructure investment, and sectoral development is yielding results,” he said.
Premier Alan Winde emphasised the importance of sustaining this performance. “We must maintain this momentum if we are to boost growth and job creation,” Winde said. “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 driver of the Western Cape economy, contributing 31.1% to GDP and growing at a robust CAGR of 2.5%. Personal services, including education and health, grew by 1.3%, reflecting the province’s appeal to skilled professionals.
However, not all sectors kept pace. The construction sector contracted by 3.8% annually over the ten years, in line with national trends, while the manufacturing sector inched forward by just 0.03%, though still better than the national contraction of -0.58%.
Meyer acknowledged these challenges, noting the urgency of bolstering secondary industries.
“As we celebrate our achievements, we remain committed to addressing the challenges in our secondary sectors,” he said.
“We will continue to work with industry stakeholders to unlock growth, create jobs, and build a resilient, inclusive economy.”
The Western Cape Government said its Growth for Jobs Strategy is central to driving investment and ensuring the province remains a destination of choice for investors.
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