As the de facto commercial capital of the eastern half of the province, Buffalo City drives economic output, job creation and GDP through all critical sectors in this region, including manufacture, financial, banking, retail and tourism.
As a major industrial centre, it is a pivotal axis in the provincial government’s Provincial Growth and Development Plan (PGDP) and a major gateway to tourism in the province.
Enveloped by the exhilarating Wild Coast further to the east, and the lush Garden Route to the west, Buffalo City is an aesthetic and scenic part of the province with an abundance of world-class schools, state-of-the-art medical facilities, art galleries and recreational facilities, with ongoing development and a growing economy constantly luring new residents and investors from around the world.
At between 300 and 500m above sea level, the city features no fewer than ten estuaries, 14 expansive beaches, nature reserves, numerous natural heritage sites, game parks, pre-historic middens and nearby San cave paintings.
The East London Industrial Development Zone is thriving and sound road, rail and port infrastructure make Buffalo City the perfect base for manufacture and import-export business. The highly competitive river port – a critical partner to the region’s major economic actors – is one of the most efficient in the country, and has the enviable competitive advantage of being able to handle a great diversity of cargo with the potential to significantly increase output.
There is an ample supply of skilled and semi-skilled labour, with significant evidence of growing investor confidence in the city and the region at large. Currently, more than 45% of all large-scale manufacturing enterprises in the province are linked to either parent or partner corporations with an international base. Of these, many are established in Buffalo City.
Developmentally, the municipality is benefiting from a major urban renewal initiative, with Mdantsane – the second-largest township in South Africa – having been identified as one of eight National Urban Renewal Nodes. This initiative recently received a R130-million grant from the European Union towards meeting its objectives of upgrading living conditions and improving economic development.
Tourism
Arguably one of Buffalo City’s most tourist-friendly features is its proximity to numerous bather- and surf-friendly beaches, wildlife and traditional-culture activities. In an area big on adventure, tourists can choose to experience the city by means of seashore horse riding, river-rafting, abseiling, camping, canoeing, paddle-skiing, flying, quad-biking or hiking – all within a few minutes’ drive from the city centre.
A gentle mid-ranged climate guarantees good weather year round, ensuring good opportunity for outdoor pursuits even during the harshest of winters.
History lovers will find much to revel in, both inland and at the coast. The interior is notorious frontier-war country – battlegrounds which over just a few centuries set the landscape of South Africa’s bloodied history. Award-winning guides offer tourists informative and entertaining cultural tours through townships and along heritage trails, complete with music, food and story-telling. At the coast, meanwhile, no fewer than 500 shipwrecks haunt the seabed between Gulu to the west of the city to Gonubie on the east.
Well-maintained museums trace the area’s past, both in natural and social sciences, and fantastic vantage points along the beachfront and outlying coastlines are perfect for dolphin and whale watching.
Don’t miss
• Go wild with the big cats at the Lion Park just six minutes from East London. Play with cheetah and lion cubs and feed the friendly giraffe!
• Enjoy an exquisite Sunday lunch with the family at the Country Bumpkin Restaurant in Chintsa.
• Take a township tour – complete with taverns, local cuisine, culture, and lessons in history – with the award-winning and knowledgeable Velile Ndlumbini.
• Tee off on the prestigious East London Golf Course.
• Visit the cauldron of heritage which makes up Buffalo City’s rich cultural stew – from the German Settler Memorial on the Esplanade to the Steve Biko Garden of Remembrance at Ginsberg outside King William’s Town and the Mngqesha Great Place near Dimbaza.
• Go back in time at the East London Museum, home of the world-famous coelacanth, and lunch at the Coelacanth Coffee Shop.
• Buy original Chinese art while dining at the immensely popular Shanghai Restaurant in Currie Street, Quigney.
• Get up close and personal with dolphins on a Ballyhoo Cruise, with stunning views of Buffalo City from the sea.
• Surf at the world-class Nahoon Reef or Eastern Beach.
• Catch a show at the Guild, Alexander Playhouse or Arts Theatres.
• Savour the scrumptious global cuisine with a dose of live jazz at Smokey Swallows Restaurant in Devereux Avenue, Vincent.
• Chill with firedancers at a drumming circle on Nahoon Beach every Thursday night.
• Go strawberry-picking or buy fresh home-made confectioneries and produce at Lavender Blue on the old Gonubie Road.
• Visit the Amathole Museum in King William’s Town – the first museum in South Africa with an authentic Xhosa-history exhibition.
Economic activity
Buffalo City contributes an estimated 23% of the total provincial GDP and roughly one fifth of all employment opportunities.
Traditionally, economic activity has been most robust in the primary and secondary sectors, specifically the automotive industry, which has been a mainstay of economic growth and job creation in the area.
In line with developments elsewhere in the country, there has been a marked shift from the primary and secondary sectors to the tertiary sectors, with the latter now contributing in excess of 75% to the local economy.
The top three sub-sectors of the economy are finance and business services, manufacturing and government services.
While East London is the dominant economic partner of the two major urban centres in the municipality, Bhisho/King William’s Town, home to the provincial government, is a major service and administrative centre.
Investment opportunities
Despite a below-average urban growth rate, measured at around 2.5%, Buffalo City is acknowledged as having vast potential for growth and development, and for substantial job creation across a number of important sectors.
A key strategy in unlocking this potential is the East London IDZ, one of four designated industrial development zones in South Africa and one of only two such initiatives which are fully operational.
An initiative by the South African government to encourage export-oriented growth through the attraction of foreign and local investors, the East London IDZ is an ideal choice for the location of export-led manufacturing and processing, with the city well served by a sophisticated road, rail, sea and air network. Established in 2002, the IDZ boasts more than 100 fully serviced sites, with 14 permanent manufacturers having already based themselves in the zone.
Targeted sectors for investment in the ELIDZ include the motor industry, textile and clothing, pharmaceuticals, agricultural products beneficiation, forestry and wood products and high tech manufacturing and electronics.
Generally, BCM’s development initiatives are spearheaded by its Department of Economic Development and Tourism, where a dedicated general manager, assisted by local and foreign experts, are working towards tourism, rural and urban agriculture and small business development.
The challenge of sustainable development of the beachfront has been taken up by the Buffalo City Development Agency, which is spearheading a multi-pronged approach in researching development options for several key sites in the city.
Situated on the coast with excellent access to the Wild Coast, Garden Route and the Eastern Cape’s majestic hinterland, Buffalo City also has vast potential for accelerated tourism development. To this end, the municipality has developed a Tourism Master Plan, with local tourism officials working closely with their provincial counterparts to position the area optimally for tourism development. Opportunities for further development within the tourism sector include sports tourism (the city has invested substantially in sports infrastructure) and heritage and culture tourism. The Inyathi Buffalo Route, focusing on community based tourism, was launched in 2005. In addition, a Struggle Route is being developed, which will link to the Amathole district municipality heritage sites and will include sites in Dimbaza, Steve Biko and Duncan Village Garden of Remembrance, Heroes Park and the West Bank Prison.
Opportunities for agricultural development include dairy, essential oils, fat lamb production, strawberry production, timber, hemp and paprika, macadamia nuts and agro-processing.
Area: 2 510km²
Population: 880 000
Incorporating the city of East London on the eastern seaboard and the provincial capital of Bhisho/King William’s Town less than 60km inland, Buffalo City is the second-largest Eastern Cape municipal entity after Nelson Mandela Bay.
Tel: +27 (0)43 705 3150
Fax: +27 (0)43 722 0660
Executive mayor: Zintle PeterMunicipal manager: Gaster Sharpley
