Economic sectors in space
The propulsive industries, firms and occupations behind the growth and decline of South Africa’s cities and towns.
What are the propulsive industries, types of firms and occupations behind the growth and decline of SA's cities and towns? This theme looks at the leading tradeable sectors whose performance has powerful multiplier effects across the economy. Mining and manufacturing have traditionally performed this role, but their declining contribution has caused major disruption for local economies. The emergence of new growth sectors in tradeable services, finance and technology need further research, including their national, continental and global linkages and value chains. Are advanced services substitutes or complements to mining and manufacturing, and what are their locational preferences? Can other kinds of services help to create the jobs required to increase household incomes, and what contribution do informal enterprises make to jobs and livelihoods?
A new stream of work is underway on the components of employment change, including the start-up and growth of firms, set against the contraction and closure of other firms. Business entry and exit are normally considered signs of healthy competition and creative dynamism, and cities are thought to be important incubators of new enterprise and innovation. In practice, SA suffers from economic concentration and stagnation, and the turnover of firms seems more like simple reshuffling than creative destruction. Much of this research uses a new data infrastructure and spatial analytical tools based on mining administrative tax records, called Spatial Economic Activity Data South Africa (SEAD-SA).
Selected references
- Marais, L. (2025) 'Planning for post-mining economies: Misconceptions and opportunities', The Journal of the Southern African Institute of Mining and Metallurgy, 125. https://www.saimm.co.za/Journal/v125n4p217.pdf