The Eastern Cape is the poorest province in South Africa and has the highest expanded and official unemployment rate in the country. Subsistence agriculture predominates in the former homelands, resulting in widespread poverty. A multi billion Rand industrial development zone and deep water port are being developed in
Coega to boost investment in export-oriented industries. Overall the province only contributes 8% to the national GDP despite making 13.5% of the population. The real GDP of Eastern Cape stands at an estimated R230.3billion in 2017, making the province the fourth largest regional economy in SA ahead of Limpopo and Mpumalanga.
Agriculture There is much fertile land in the Eastern Cape, and agriculture remains important. The fertile
Langkloof Valley in the southwest has large deciduous
fruit orchards. In the Karoo there is widespread sheep farming. The Alexandria-Makhanda area produces pineapples, chicory and dairy products, while coffee and tea are cultivated at Magwa. People in the former Transkei region are dependent on cattle, maize and sorghum-farming. An olive nursery has been developed in collaboration with the
University of Fort Hare to form a nucleus of olive production in the Eastern Cape. Domestic stock farming is slowly giving way to game farming on large scale.
Eco-tourism is resulting in economic benefits, and there is lower risk needed to protect wild, native game against drought, and the natural elements. Habitat loss and poaching pose the greatest problems. The area around
Stutterheim is being cultivated extensively with timber plantations. The basis of the province's
fishing industry is
squid, some recreational and commercial fishing for line fish, the collection of marine resources, and access to line-catches of
hake. In the Eastern Grasslands landscape centred on Rhodes and Maclear,
Conservation South Africa has been involved in initiatives on sustainable grazing and strengthening wool value chains.
Industry With three import/export harbours and three airports offering direct flights to the main centres, and an excellent road and rail infrastructure, the province has been earmarked as a key area for growth and economic development in modern South Africa. The two major industrial centres,
Port Elizabeth and
East London have well-developed economies based on the automotive industry.
General Motors and
Volkswagen both have major assembly lines in the Port Elizabeth area, while East London is dominated by the large
DaimlerChrysler plant, now known as Mercedes-Benz South Africa. Environmental-friendly projects include the Fish River Spatial Development Initiative, the Wild Coast SDI, and two industrial development zones, the East London Industrial Development Zone and the Coega IDZ near Port Elizabeth. Coega is the largest infrastructure development in post-
apartheid South Africa. The construction of the deepwater
Port of Ngqura was completed and the first commercial ship anchored in October 2009. Other sectors include finance, real estate, business services, wholesale and retail trade, eco-tourism (nature reserves and game ranches) and hotels and restaurants. ==Law and government==