Western Cape's economic growth surges despite national challenges
Western Cape Premier Alan Winde and Economic Development MEC Dr Ivan Meyer say strong agricultural growth and investor confidence continue to drive the province’s economy forward.
Image: Armand Hough / Independent Newspapers
Despite national economic challenges, the Western Cape has once again emerged as South Africa’s most resilient province, posting positive GDP growth and topping the country's Business Confidence Index (BCI) rankings for the second quarter of 2025.
According to newly released figures, the province’s BCI dipped only slightly from 52 to 51 but remains well above Gauteng’s 37 and KwaZulu-Natal’s 24, as well as the national BCI of 40. The index, which measures business sentiment based on key economic indicators such as exports and energy supply, signals continued confidence in the province’s economic trajectory.
Premier Alan Winde and Western Cape Minister of Agriculture, Economic Development and Tourism, Dr Ivan Meyer, credited the sustained optimism to the Western Cape’s strong agricultural performance and strategic economic planning.
“Our commitment to doing everything we can to grow the economy and create jobs is showing in independently verified numbers,” said Winde.
“But we still have so much more to do. While I am pleased with these numbers, we will not relent in our commitment to ensure that more of our residents have a chance to get a job.”
The province’s GDP grew by 0.5% quarter-on-quarter and 0.9% year-on-year, driven largely by the agriculture, forestry, and fishing sector, which surged by 15.8%. This translated into an estimated R3.12 billion increase in the provincial GDP, underscoring agriculture’s vital role in economic recovery.
“Strong business confidence is not an accident,” Winde said.
“This is the result of our hard work in ensuring the Western Cape is the easiest province to do business in. It is a vital indicator of how we are faring in growing our economy to create more jobs, despite a constrained fiscal environment.”
The Western Cape remains the only province with positive business sentiment, attributed in large part to its Growth for Jobs (G4J) strategy. Officials say the plan prioritises job creation through private sector investment, infrastructure development, and export growth.
“Notwithstanding significant headwinds, such as the impact of global trade uncertainty, business confidence in our province remains positive. If the private sector thrives, we all thrive, and more of our residents have the chance to get a job,” Winde said.
The data affirms the Western Cape’s status as a beacon of economic stability in South Africa’s turbulent economic landscape.
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