Page 24 - Provincial Treasury Estimates.pdf

Overview of the Provincial Revenue and Expenditure (OPRE) Financial Year 2023/24
The following sector / industry performance information is based on latest available data from various data sources,
including Stats SA, Quantec and the SA Reserve Bank.

Agriculture
The negative growth in the first half of 2022 for agriculture was due to a sudden upsurge in input prices for fuel and

fertilizers, The renewed imposition of market access restrictions across the European Union (EU), labour unrests, and
delays in port handling for horticulture products also weighed down on the sector’s overall output, especially for citrus.

However, provincial agriculture rebounded in the third quarter of 2022 by 18.4 per cent, quarter on quarter. For the
2022 full year employment for the sector in the Province lost a net total of 28 000 thousand jobs. The provincial
government is currently weighing up proposals and options in consultation with agri-commodity groups within the

province on possible short-term relief measures for farmers, especially those that continue to be severely affected by
persistently high agri-input prices. The aim is to protect the gains achieved by government in supporting emerging
farmers commercialize in the province.

The development of aquaculture in the Province despite initial delays and setbacks is finally yielding positive outcomes,
with significant private and public investments beginning to flow into various sites in the province to set up aquaculture
infrastructure and fish farms. The largest land-based marine fish farm in the country has recently been located and

operationalised within the East London Industrial Development Zone (ELIDZ) with financial support from the private
sector and the Department of Trade and Competition (DTiC) through its Aquaculture Development and Enhancement
Programme.

Overall, the outlook for the agriculture sector remains positive despite the risks posed by high input costs, electricity
supply constraints, port handling delays.

Manufacturing
Through its direct links with global value chains the auto sector in the Province continues to be major driver of
manufacturing activity, employment, and export earnings, thus linking the provincial economy to major global economic
trends and developments.

Table 1.3 EC Province Exports (R millions, current prices, 2019 – 2021)
Industry (Rmil) 2019 2020 2021
All 57 150.3 59 508.9 64 438.1
Agriculture, forestry and fishing [SIC 1] 8 265.5 10 629.6 10 433.9
Manufacturing [SIC 3] 48 744.5 48 809.7 53 953.8
of which:
Transport equipment [SIC 38] 34 723.0 37 401.9 41 581.0
Petroleum products, chemicals, rubber and plastic [SIC 33] 3 173.4 2 675.3 3 338.8
Food, beverages and tobacco [SIC 30] 2 079.8 2 107.0 2 427.0
Textiles, clothing and leather goods [SIC 31] 2 188.8 1 889.5 2 405.1
Metals, metal products, machinery and equipment [SIC 35] 2 305.5 2 144.1 1 637.0
Furniture; other manufacturing [SIC 39] 2 705.7 952.1 1 045.0
Other non-metal mineral products [SIC 34] 826.3 863.3 833.0
Electrical machinery and apparatus [SIC 36] 548.1 562.4 485.9
Radio, TV, instruments, watches and clocks [SIC 37] 88.0 151.0 127.7
Wood and paper; publishing and printing [SIC 32] 106.0 63.1 73.4
Source: Quantec Data 2022

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