The strength of the Southern Cape's economy and its growth prospects lie in the robust nature of its core sectors (agriculture, tourism, forestry and manufacturing, as well as trade) while at the same time having growth potential and competitiveness in an amazingly wide range of subsectors or niches.
Good examples of the latter are the world-famous ostrich industry of the Klein Karoo, hops farming around George, fishing off the Southern Cape coast and inland in the Knysna lagoon as well as other areas, the famous timber products and manufactured furniture, and (in the services sector) the retirement industry, which stimulates residential (upmarket) construction and personal-care facilities.
The Eden economy overall looks to be on a good growth path over the 2002/03 year, fuelled in particular by the buoyant tourism sector, good rainfall in most of the agricultural areas and high export levels in 2002.

Labour
The 2001 census data shows the relatively small pool of workers with more than a Grade 12 (matric) certificate - only 9,7 per cent.
Two factors counter the growth-limiting effect of this percentage: the steady inflow of (semi)retired, skilled people from up north (Gauteng) or the Eastern Cape, and the expanding diversity of local education and training facilities -many of them branches of well-developed centres elsewhere in the country (like the P.E. Technikon's presence in George and Saasveld). Nevertheless, the systematic expansion of the local skills base constitutes one of the main challenges for economic growth.

Wolfgang Thomas

See tables below: