A regional analysis of the competitiveness of industries in the Nelson Mandela Bay Metropolitan Municipality, South Africa

Roan Jan Neethling, Ewert PJ Kleynhans and Precious Mncayi

Local Economy, 2023, vol. 38, issue 2, 119-138

Abstract: The Nelson Mandela Bay Metropolitan Municipality is situated on the Eastern Coastline of South Africa. The metropolitan itself has the potential for major local and regional economic growth but has experienced significantly low growth over the past few years. Internal constraints that the province faces include high production costs, limited economic development and support, deteriorating infrastructure and limited financial resources. To assess the local economy of the Nelson Mandela Bay Metropolitan Municipality, the methodological techniques used include the location quotient and shift-share analysis. The empirical analysis showed that the municipality is highly specialised in industries such as agriculture, forestry and fishing, and transport equipment. The evaluation of the top five industries revealed that business services, wholesale and retail trade, transport and storage, catering and accommodation, and social and personal services have the highest growth potential and may contribute to future development initiatives. Efforts to stimulate industrial growth include the promotion of tourism, increasing the market share of wholesale and retail trade, establishing an integrated approach to the services industry, and finally, expanding the market share of the transport and storage industry.

Keywords: regional analysis; industries; Nelson Mandela Bay; Eastern Cape; economic growth; development (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:loceco:v:38:y:2023:i:2:p:119-138

DOI: 10.1177/02690942231191988

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