George economy not back to pre-Covid levels

GEORGE NEWS - A growing population spends more money, business gets a boost, and the local economy grows, right? Not so simple, says Dr Willie Cilliers, vice-chairman of the George Business Chamber and managing director of the Afrikaanse Handelsinstituut (AHi).

"The migration of people to George stimulates the economy to some extent, but there is a negative impact on a market that had already been under pressure pre-Covid and was further severely affected by the pandemic," he says.

"The economy remains under pressure. Although there is a positive movement in the market, especially in the manufacturing sector where the orders are booked two to three months ahead, compared with 2019, the market is still behind."

Cilliers explains that in this pressured market, new residents start small businesses (such as coffee shops), dividing the cake into smaller slices in a certain segment.

"The new businesses in some instances also undercut the market with unsustainable prices. Six months further on they fold, but by then the market has already been upset."

Increased spending does not necessarily mean that all the money remains in the local economy. "People spend a lot at big corporations and chains whose money flows out to the bigger centres."

Impact of informal sector

Cilliers says the growth in the informal sector in George is perhaps a bigger issue than the influx of people with money.

"Almost 46% of people in the informal sector are economically inactive. Many people from the Eastern Cape coming to live here in search of jobs and services do not contribute, but insist on free services. That places a big burden on resources."

He is concerned that if the city's population keeps growing at the current rate, infrastructure will not be able to keep up. "Our city leaders will have to think strategically and plan carefully to ensure the infrastructure can handle this wave. We can currently still accommodate it, but it is becoming a huge concern."

'Extraordinary' increase in medical sector

Dr Almero Viljoen, chairman of the Mediclinic Clinical Committee, says doctors are experiencing an extraordinary increase in the number of patients who are newly arrived in George.

"It is really like a wave. Almost every week I see five or more patients who have moved here during the past year. In the 17 years I have been in George, I have never experienced anything like this. It is the same in the various disciplines where a flood of new patients is seen. This is resulting in longer waiting times for appointments. The volume is such that we would need more specialists if this trend continues."

Western Cape AHi chairman Dr Willie Cilliers is concerned that if the city's population keeps growing at the rate, infrastructure will not be able to keep up.