Economic overview
Swartland LM is the municipality closest to the City of Cape Town metropole which is at the same time one of its greatest advantages and also on of the greatest challenges. As the City of Cape Town expands, in all directions, so the surrounding areas grow in demand. The Swartland offers a relaxed country lifestyle, not too far from city comforts, which is why it is seeing a growing demand for residential developments such as the Mount Royal Golf and Country Estate along the N7.

The proximity to the city also makes the municipality an attractive industrial area, close to markets and suppliers. The ports at Cape Town and Saldanha Bay and the airport at Cape Town provides excellent export infrastructure to local businessmen.

The Swartland has a population of 72 115, 72% of which is urbanised, making it the second largest urban population within the West Coast DM. Only about 20% of the population has a Grade 12 or matric certificate, but the municipality does score well in what is termed the human development index (HDI) which considers life expectancy, adult literacy, school enrolment and GDP per capita in its estimations. And while GDP per capita is at a respectable R22 187, a high Gini coefficient suggests the distribution of wealth is skewed quite markedly, leaving a higher level of poverty in the region than what is desirable, or even acceptable. Unemployment in the region is estimated, depending on the definition, at between 10% and 20%, which though quite well below national estimates of 25% to 30%, is still reason for concern. 

Sector analysis
Swartland’s economy displays a degree of diversity, with at least five sectors making a significant contribution. The four key drivers of the local economy in terms of gross regional product (GRP) are manufacturing, financial and property services, agriculture and retail and trade, while government services is a significant fifth contributor. In a similar vein, the four biggest contributors by sector to employment are agriculture, retail and trade, government services and manufacturing. The only sector not listed here that is a key contributor at provincial level is construction, and this is certainly one area that could see a high level of growth in the region with the potential for growing the economy and reducing unemployment as demand for residential and industrial developments continues to grow.
 
Agriculture
Although agriculture’s contribution to GRP has decreased from 25% to 19.9%, the sector remains the most important contributor in the municipality in terms of employment, and thus crucial from a social perspective as well as economic. Agriculture within the Swartland is diverse in the sense that it is made up of farming grapes, olives, dairy, canola, legumes, sheep, beef and wheat. Despite, or perhaps because of this diversity, the industry in the municipality is both stable and sustainable.

The Swartland is known as the breadbasket of the Western Cape because it is one of the main wheat producing areas within the winter rainfall region. Despite losses in recent years, as is unfortunately part and parcel of a volatile crop such as wheat, farmers remain in the region, and thought has been given to some protection of the industry being enforced by government, especially in the face of an international set standard on wheat pricing.

Manufacturing
The contribution of manufacturing to the economy in terms of GRP and employment is steadily increasing. This can largely be attributed to the number of light industries and manufacturers of agricultural based products found in the area. It is possibly one of the Swartland’s greatest assets is that it has a number of national and international businesses located within the area. Some of the businesses with international profiles are: Bonwit, Swartland Group, Raiel, Pioneer Foods, Swartland Winery and PPC Cement.

Financial, property and business services
This sector’s contribution to GRP has increased significantly from 7.7% during the years from 1996 to 2001 to 20.2% of GRP for 2004. The services are mainly located in Malmesbury and can be attributed to the growth in manufacturing and the increase in residential developments in the area requiring these services. Despite its GRP contribution, however, the sector remains a relatively low employer in the Swartland.

Retail and trade
The marginal and stable growth of this sector in the region can be attributed to growth in other related sectors such as manufacturing, residential development and increased disposable income in the area. Retail and trade now contributes almost 15% to GRP.

Construction
The best indication that property development and construction is on the up in the municipality is that between 2001 and 2004, the value of building plans passed increased from R87-million to R288-million, an impressive 231% growth.

Tourism
Tourism does not play as big a role as it could in the municipality, despite there being a number of good reasons to suggest that the region has the potential to attract some of the tourists that pass through Cape Town a little further south. These attractions include the natural scenic beauty of the west coast, attractive wine estates, adventure tourism such as 4x4 trails, bike trails and game farms, and a cultural and historical aspect unique to the area.

Contact the Swartland Local Municipality:

Tel.: +27 22 487 9400

Fax: +27 22 487 9440

Email: swartlandmun@swartland.org.za

Website: www.swartland.org.za