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Economy of East London


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East London is the second largest industrial centre in the province. The motor industry is the dominant employer. A major Daimler plant is located near the harbour, manufacturing Mercedes-Benz vehicles for the local market, as well as exporting to the United States. Other industries include clothing, textiles, pharmaceuticals and food processing.

From the 1960s until 1994, the apartheid government created tax and wage incentives to attract industries in the then black "independent states", including nearby Ciskei. Investment thus flowed into surrounding areas such as Fort Jackson and Dimbaza, leaving East London in relative isolation. The militant union activity of the time was not conducive to productivity or good labour relations. Infrastructure deteriorated and port activity wound down.

To encourage investment in East London, the East London Industrial Development Zone (IDZ) has been established on the West Bank, close to both the port and airport. 1500ha of land has been made available, and the site is one of four duty-free development areas in South Africa.

East London has good transport links with the rest of South Africa. The N2 highway connecting Cape Town and Durban bypasses the city, while the N6 highway joins East London with the inland city of Bloemfontein. East London Airport, 10 km from the city centre, has daily flights to all major South African cities
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