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The Eastern Cape Development Corporation say the province is showing signs of economic recovery.
Chief executive, Sitembile Mase, says GDP and provincial output is expected to be around 4.2% in 2013.
"Fixed domestic expenditure is gradually expanding particularly on infrastructure projects such as the Mthatha Airport, the N2 and other initiatives in rail, dams, roads and schools," he said.
"There is talk of the revival of agricultural infrastructure such as irrigation schemes, transport logistics, storage facilities pre and post harvest, agro-processing and packaging facilities amongst others. There are ongoing discussions on primary production, rapid movement of goods and services to the markets taking advantage of natural land endowments as well as the province's favourable climatic conditions."
"For example, the corporation has already developed a business case for setting up a province-wide agro-processing industrial initiative. The business case helped the corporation reflect on the most appropriate structural and institutional arrangements," Mase said.
He says however that there are some dark clouds on the horizon.
"The looming retrenchment of about 14 000 mineworkers paints a negative picture especially for families which come from the Eastern Cape. Almost 60% of this number could be Eastern Cape workers. Retrenchments will directly and indirectly affect them and their families," he added.
"The farm-worker strikes in the Western Cape could have a damaging effect on the prospects of the Eastern Cape economy in terms of job losses and increasing unemployment. Eastern Cape citizens have historical family and economic ties to the Western Cape hence the natural connections and economic dependencies."
Mase said "any possible retrenchments and dismissal of those workers will seriously affect the economy of the province in terms of unemployment."
"These developments could have a serious effect and hit the rural areas of the province the hardest. They will create pressure on rural municipalities," Mase added.
