Western Cape GDP and Business Confidence Index remain robust despite difficult economic challenges
Premier Alan Winde and Western Cape Minister of Agriculture, Economic Development and Tourism, Dr Ivan Meyer, are encouraged by the positive business confidence index (BCI) for Quarter 2 of 2025, once again bolstered by strong growth in the agricultural sector.
“Our commitment to doing everything we can to grow the economy and create jobs is showing in independently verified numbers, but we still have so much more to do. While I am pleased with these numbers, we will not relent in our commitment to ensure that more of our residents have a chance to get a job. We will also push national government to implement the reforms that are needed, not just here in the Western Cape but across South Africa to boost growth and jobs,” said Premier Winde.
BCI gauges business sentiment and performance based on numerous factors, among them exports and energy supply.
The Western Cape’s BCI dipped slightly from 52 in the previous quarter to 51. This is still well above Gauteng (37) and KwaZulu-Natal (24). It outperformed South Africa's BCI of 40. This is indicative of the private sector’s faith in the province’s general economic position.
The Western Cape is the only province with positive sentiment, supported by good governance and solid economic growth, driven by the Growth for Jobs (G4J) strategy.
The Western Cape’s Gross Domestic Product (GDP) growth is also strong: GDP grew by 0.5%, quarter-on-quarter, and by 0.9% year-on-year.
The agriculture sector continues to show impressive growth, significantly buoying the province and South Africa’s GDP. The bulk of the 0.5% (or R3,12 billion) increase in the Western Cape's GDP in the quarter under review can be attributed to the 15.8% increase in the agriculture, forestry, and fishing sector
“Strong business confidence is not an accident. This is the result of our hard work in ensuring the Western Cape is the easiest province to do business in. It is a vital indicator of how we are faring in growing our economy to create more jobs, despite a constrained fiscal environment. Notwithstanding significant headwinds, such as the impact of global trade uncertainty, business confidence in our province remains positive. If the private sector thrives, we all thrive, and more of our residents have the chance to get a job,” said Premier Winde.
Commenting on the results, Minister Meyer said, “The Western Cape continues to lead South Africa’s economic recovery, with a robust 0.5% GDP growth in Q1 2025—five times the national rate.
Minister Meyer stated, “This growth was powered by a remarkable 15.8% surge in the agriculture sector, driven by strong performances in field crops and horticulture. Citrus, grape, and stone fruit exports remain key economic pillars. Business confidence in the province also held firm at 51 in Quarter 2, outperforming the national index of 40. Unlike other provinces, the Western Cape maintained positive sentiment amid global uncertainty and national economic headwinds.”
“Effective governance and strategic economic planning are paying off. The province’s resilience is a beacon for inclusive growth. We remain committed to unlocking further investment and job creation. The Western Cape is open for business—and thriving,” concluded the Minister.