There was a registered
deficit on the trade balance in the CMA of close to R6 billion in 1996 despite an upward
trend in export earnings since 1991. Agricultural products are the most important export
from the CMA and Western Cape Province. The CMA Gross
Geographic Product (GGP) was approximately R56 billion in 1997.
CMA economy constitutes 10.5% of South Africa’s Gross
Domestic Product (GDP) and 75% of the provincial GGP.
The formal economy showed a 2.5% average annual growth rate in
real output between 1991 and 1996.
There are modern harbour facilities, an international airport and
a well developed road and rail network, but these facilities lack connectivity. There is a
good telecommunication network and a reliable postal service.
The formal economy has a range of diverse activities. The main
sectors of the formal economy are manufacturing, trade and catering and services with 28%,
21% and 19% share respectively. The tourism industry is a major growth sector with respect
to investment, employment and the diversification of services.
Approximately 750 000 foreign tourists visited the Western Cape
Province in 1997, the majority visiting the CMA. In addition, there has been growth in the
film industry and the number of corporate head offices in the CMA.
More than half of the labour force is professional and highly
skilled, while 45% is semi- or low- skilled.
Commercial investment in retail development was 48.9% in 1997/98,
followed by hotel development at 24.8% and office development at 21.3% with industrial
development at 5%.
It is estimated that the informal economy contributed R3.6
billion (or approximately 7%) to the economy of the CMA during 1997.
