Small towns across South Africa (SA) are facing the lasting consequences of de-industrialisation, a new Frontline Africa Advisory study has revealed.

The report warns that local economies, communities, and municipalities risk being locked in cycles of decline as industries shut down.

The firm’s Managing Director, Thembinkosi Gcoyi, says many smaller towns depend heavily on a single major employer, with smaller local enterprises built around it. When those companies close, the effects ripple through the community.

“There are many reasons that result in de-industrialisation, and it mostly happens in small towns,” Gcoyi explained. “These towns often rely on one big company that supports and is serviced by small local businesses. When big companies close, small businesses cannot survive, leading to job losses and loss of income for families. Municipalities also suffer because they lose revenue from tax and rates.”

The report calls for targeted economic revitalisation strategies to help affected towns recover and diversify their local economies.

–ChannelAfrica–