Mnquma Local Municipality is located in the South Eastern part of the Eastern Cape Province. This category B municipality falls under the jurisdiction of the Amathole District Municipality (ADM) and comprises of an amalgamation of the former Butterworth, Ngqamakhwe and Centane TRC‟s. Mnquma Municipality shares borders with three other local municipalities i.e. Mbhashe, Intsika Yethu and Great Kei Municipalities.
The Mnquma Local Municipality adopted a cluster approach in as one of its mechanisms to monitor the implementation of its integrated development plan. These are called IDP Clusters and are established in line with the five National Key Performance Areas, namely, Municipal Transformation and Institutional Development, Basic Service Delivery and Infrastructure Development, Local Economic Development, Good Governance and Public Participation and Financial Viability and Management.
Economic growth in Mnquma has been slower than the national and provincial averages, averaging just 2.5% over the last decade. Most economic growth has been government funded either through capital investment in construction or via social grants supporting wholesale and retail trade and financial and business services.
The tertiary sectors of the economy, particularly wholesale and and community services added more value to the total GVA of the LM during 1996, 2001 and 2007. The leading contributor in the region was the community (government) services sector, as it contributed on average 41% to the local minucipality‟s total GVA over the three years under study.
Wholesale and retail trade was also a major role player, contributing 21,8% in 1996, 20,8% in 2001 and 18,5% in 2007. In the secondary economic sectors, the manufacturing sector also played an important role by contributing 16,0% in 1996, 15,2% in 2001 and 15,5% in 2007.
The small, medium and micro enterprise (SMME) sector is mainly dominated by the informal (micro)
sector, which is mainly survivalist in nature. The municipality is viewing this sector as significant in
boosting the local economy.
Source: Mnquma IDP 2012-17