The other economic sectors of the Cacadu District Municipality (CDM) economy play an important role in diversifying the regional economy and contributing to the Gross Geographic Product. Although the agriculture and agri-processing sectors dominate the region in terms of land use and employment, the secondary and tertiary industries contribute significantly more to the regional economic output.

The trade and retail sector employs 14% of the district labour force and contributed R2 billion to the district’s total GGP in 2008. The trade and retail sector within the district is concentrated in secondary towns, which service the outlying rural communities. These centers provide the day to day shopping needs of communities whilst monthly and specialty shopping is conducted in cities outside the region i.e. Port Elizabeth and East London. There have been major developments within the retail sector especially within Port Alfred and Jeffrey’s Bay where shopping centers have been built to satisfy the growing consumer demand in the coastal regions of the CDM. 

The financial and business services sector contributed 24% to the regional economic output (2008) and employs 10% of its workforce. Financial and business services are based around regional centers and service the resident community and the large, outlying, rural population.

The Transportation, Communication and Storage Sector’s contribution to Cacadu’s GGP is R922 million and is based on freight services and storage facilities for the agricultural sector. The prominence of rail infrastructure within CDM has declined due to the increased use of road freight. Provincial plans have identified the need for rail transportation especially around tourism and agri-logistics. The need for a wider public transportation network has also been identified.

The construction sector has experienced rapid growth owing to the property market boom of the last 5 years. The industry employs 7% of the district’s workforce and accounts for 6% of GGP or R649 million. The areas where property development has shown a significant increase has been in coastal resort towns in the Kouga and Ndlambe Municipalities, where residential housing estate and retail developments have increased. There has also been increased government investment in roads, housing projects and social facilities such as schools and government buildings.

 

The CDM manufacturing base is centered on agri-processing (see sector profile) and niche manufactured products. Other forms of manufacturing undertaken in the region include brick manufacturing in Grahamstown; timber and furniture manufacturing in the Tsitsikamma; educational equipment in Somerset East and plastic products. The Cacadu region is ideally positioned to take advantage of the Industrial Development Zones located outside Port Elizabeth (Coega IDZ) and East London (ELIDZ). The IDZ offers the potential of backward linkages with many of Cacadu’s sectors. The Eastern Cape is also home to an established automotive manufacturing sector, with the province being the largest manufacturer of catalytic converters in the world. The region’s proximity to the IDZs and the industrial centers of Port Elizabeth and East London offers the CDM great opportunities for expansion of its manufacturing sector.

 

The mining sector in CDM is small however there is great potential around Kaolin mining. Kaolin deposits are located in Makana Municipality and accounted for 27% or 20kt of national kaolin production in 2004. Investigations into the beneficiation around kaolin and an integrated ceramics industry are underway.

Within the community and personal services sector it should be noted that the region is home to the internationally acclaimed Rhodes University located in Grahamstown. CDM is also located in close proximity to the equally well respected Nelson Mandela Metropolitan University in Port Elizabeth and the historic Fort Hare University, in Alice. These institutions have many economic and socio-economic spinoffs for the CDM. They attract students and staff from around the country and the world. These institutions also play a vital role in the regional innovation system within the district, by promoting research and development that is focused on the CDM and the Eastern Cape and by improving the regional knowledge base.

 

The Small Medium and Micro Enterprises (SMME) sector includes both formal and informal businesses and is a vibrant component of the CDM’s economy. These enterprises are supported by small business development initiatives instituted by local and district government and the Small Enterprise Development Agency (SEDA). These initiatives include training and mentorship, development of SMME databases and distribution of market information.