The Western Cape has been less affected by the credit crunch than Gauteng, the Eastern Cape and the Free State, reports Cape Business News.
Since 2004 the Western Cape has shown the highest level of growth, and in the 12 month period ending February 2009 the economic decline in the region (- 7%) was lower than in Gauteng (-16%) and the Eastern Cape (- 15 %).
Factors to the benefit of the Western Cape are that it does not have a mining industry, which has been severely affected by the credit crunch; it has fewer job losses and a broader base of business sectors; its agricultural sector is diversified; manufacturing is diversified, with little involvement in the depressed motor industry; and last, but not least, the tourism industry is larger and stronger, and is attracting visitors from Southern Africa who are not travelling overseas this year.
Professor Wolfgang Thomas from the Stellenbosch Business School advises businesses “to not panic” due to the credit crunch, and sees it bottoming out soon.
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