/ 2 November 2004

Rustenburg is SA’s boom town

Rustenburg in the North West province has the distinction of having been South Africa’s fastest-growing urban area between 1996 and 2002, with an annual compound economic growth rate of 6%.

It was followed by Pretoria at 5,1% and Kimberley at 4,8%.

The worst performance was put in by the Free State’s Goldfields, which showed an annual decline of 4,3% over the same period.

These and many other indispensable statistics can be found in the latest issue of the South Africa Survey, published by the South African Institute of Race Relations this week.

Combined municipal operating budgets have doubled between 1997 and 2004, from R34-billion to R69-billion, in stark contrast to the lack of service delivery that is causing discontent in certain urban areas, the survey shows.

International comparisons reveal that South Africa’s economic stability makes it stand out among developing nations. The country has shown real gross domestic product growth every year from 1994 to 2003, whereas many other developing countries experienced violent fluctuations from year to year.

In spite of this economic strength, South Africa managed to attract only 1% of foreign direct investment flowing into developing countries in 2003, according to the World Bank Global Development Finance Report.

Private enterprise has demonstrated a commitment to the country by increasing its share of total real gross fixed capital formation (GFCF) to 75% in 2003, compared with 54% in 1960.

The private sector’s annual GFCF rose by 437% and the state’s by 113% over the same period. — I-Net Bridge