The Nkonkobe Local Municipality is part of the Amathole District in the Eastern Cape Province. Nkonkobe is predominantly rural and the majority of the population lives in villages and farms and only close to 30% reside in urban areas, primarily in the towns of Alice and Fort Beaufort which are both the commercial, administrative and economic centres in the municipality.
In terms of employment, the local economy is mainly dependent on government and community services. In the agricultural sector, forestry and citrus production are the main agricultural activities, although the citrus production has experienced a decline in recent years.
The breakdown of the various economic activities shows that tertiary services (commerce & trade, transport & communication, financial & business services, social services) contribute a high ratio of 69% in which 53% is from the social services (including Government Services) which are the largest source of employment in the Nkonkobe Municipality. The primary sector (agriculture, mining) contributes 18% while the secondary sector (manufacturing, electricity / water / gas, construction) contributes 13% to the local economy.