Six of the country’s nine provinces recorded economic growth in 2024, with Limpopo, Gauteng, and the Western Cape leading the way, according to the latest data released by Statistics South Africa.
Limpopo posted the strongest growth at 0.9%, supported primarily by the finance, real estate, and personal services sectors.
Gains were also noted in utilities, trade, and manufacturing, despite underperformance in agriculture, mining, and construction.
Gauteng and the Western Cape followed, driven largely by activity in the finance sector, which emerged as the primary growth engine across all provinces.
Personal services and utilities also contributed significantly to growth in these regions.
Contractions in Three Provinces
In contrast, three provinces experienced economic contraction:
- The Eastern Cape economy declined due to poor performance in seven out of 10 industries, particularly trade, manufacturing, and agriculture
- North West also recorded a downturn, pulled down by weak showings in mining, construction, and agriculture
- Northern Cape suffered from reduced agricultural production, the key contributor to its decline
Gauteng Retains Economic Leadership
Despite regional fluctuations, Gauteng remains South Africa’s economic powerhouse, contributing approximately 33% of the national GDP, followed by the Western Cape and KwaZulu-Natal.
Key Provincial Industry Trends
- Finance remains the dominant industry in Gauteng, Western Cape, and Free State
- Mining is the top economic driver in Mpumalanga, North West, and Northern Cape
- Personal services, including education and health, lead in KwaZulu-Natal, Limpopo, and Eastern Cape
Additionally, agriculture is concentrated in the Western Cape, KwaZulu-Natal, and Free State, jointly contributing 56% of South Africa’s total agricultural output.
This data highlights the growing importance of the services sector in the South African economy and underlines the regional disparities in economic performance.
