Municipality: Mnquma Local Municipality


Mnquma Local Municipality
Cnr King & Mthatha Streets, PO Box 36
4960 Butterworth , Eastern Cape
South Africa
Phone: 047 401 2400
Fax: 047 491 0195
Eastern Cape ZA


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


  • Mnquma is known for the potential that it has in mining, in particular Titanium, granite and sand deposits. These resources are mainly located in Centane.
  • The municipality has an opportunity to position itself as the second manufacturing hub of  the Amathole District after Buffalo City. The municipality has an important history, but a limited skills base in manufacturing, textile, chemicals and wool.
  • In various studies conducted by the Department of Agriculture and the Agricultural  Research Council (ARC) the municipality has the potential in the following areas: sunflower, soya beans, grain (mainly maize and wheat), citrus and sub tropical fruits (in particular along the coast at Centane e.g. banana, avocado, mango, naartjie) and vegetables as well as a huge potential in all its areas for livestock production.
  • The coastal area of Centane has the potential for fishing which could be used to benefit the local communities.
  • The coastal line, based on its beauty and holiday facilities at Centane offers great possibilities for tourism. The local culture, heritage sites (Phalo‟s grave and Bushmen paintings) and the Bawa Falls could be developed and packaged to offer tourism adventure to the local and international tourists.


  • Mnquma's share of the value of the District economy has fallen by 0.5% since 1996, indicating the Mnquma's level of economic growth has been relatively slow
  • The contribution of the manufacturing sector has fallen by 0.5% since 1996, indicating the lack of investment and business growth in this sector
  • Mnquma is mainly reliant on government investment and grants for growth (which has only supported some growth in the wholeSAle and retail sectors, and needs to find ways to pursue additional sector growth opportunities in tourism, agriculture, and manufacturing.