This municipal territory profiles an economically diverse character and serves as the commercial centre for the larger Border-Kei region.
The concentrated city business centres are situated in East London, initially established as a river port, and in King William's Town with its first industry being wagon works dating back to the 1860's.
These centres offer a wide range of wholesale and retail trade. Industrial zones are found in numerous locations within East London, at Fort Jackson in Mdantsane, in King William's Town and adjacent Zwelitsha, Berlin area and at Dimbaza.
Industrial activities operating in the region include motor vehicle manufacturing, clothing, textiles, household and consumer goods and food processing, while agricultural production includes livestock, horticulture, pineapples, citrus, timber, mohair, chicory and wool and pharmaceutical production.
The high rate of unemployment, as experienced throughout the country, remains a serious concern. Jobs in Buffalo City fall within the whole spectrum of employment classifications as in any diversified economy. There are professional, financial, governmental, manufacturing and service industry workers.
While the spectrum of the work force is broad, there are many more job opportunities required for the large unemployed and underemployed local labour force that is available and eager to work.
The motor vehicle and component manufacturer is a prime employer. Daimler Chrysler is the main employer in the region with approximately 3,800 workers. The agricultural sector, though small in terms of its output value, is important because of its labour intensity.
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