Fight for the big bucks.

The race is on between South Africa's provinces to see which will become the future jewel in the country's crown.

Despite being the smallest of South Africa's nine provinces, Gauteng produces the major part of the country's wealth for the simple reason that it was built on gold. However, its crown is by no means secure as two other contenders are beginning to creep up behind and threaten to overtake it. Perhaps not immediately, but eventually. Both KwaZulu/Natal and Mpumalanga can dangle unique carrots in front of foreign and domestic business noses, certainly good enough to make Gauteng nervous.

At first glance, Gauteng's (or, 'gold') economic position seems unassailable. With Johannesburg as its capital, nearly 17% of the country's population of 35m live there as do about 25%, or 3.5m, of the national workforce. Its real GDP tops R90bn which is 37% of the South African aggregate and the people of Gauteng enjoy a real per capita GGP (gross geographic product) of just under R14,000.

Compare these figures with Gauteng's nearest provincial competitors and the gap appears to be yawning [ILLUSTRATION OMITTED]. A closer look however, shows that KwaZulu/Natal, Mpumalanga and to a lesser extent, the Western Cape are making giant strides and the great gap is beginning to close.

Western Cape with its capital, Cape Town, accounts for nearly 14% of the GDP and 9% of the population. It is fast becoming a major tourist attraction, it has a developed and respected wine and agricultural industry with global exports and a well-established port. However, its distance from major industry in the east-central regions of the country makes it an unlikely challenge for the economic crown.

Despite a period of post-election disorder brought about by inter-party fighting but calmed to a large degree by a pact between the ANC and the Inkatha Freedom Party (IFP), KwaZulu/Natal has attracted a huge amount of infrastructure funding. The development finance focussed mainly on the ports, Durban and Richards Bay. A R5bn Alusaf aluminium smelter, one of the largest in the world, was commissioned at Richards Bay in April and the port is subsequently being upgraded in order to handle the increased volume. It also handles 70m tons of coal exports each year. Durban concentrates on containerised traffic and is the busiest of its kind in the southern hemisphere. In anticipation of the larger volumes, an expansion programme is currently being examined.

The province, with its stretches of developed coastline, is regarded as South Africa's holidays and tourism centre and more recently has become the country's premier conference venue. The Kwazulu/Natal Provincial Government also has plans for a R10bn lakeside entertainment complex in the Midlands, including a five-star hotel, a casino, golf courses, a waterfront village, a conference centre and timeshare.

The scope of the enterprise is Africa's most ambitious which, the developers say, will make Sun City pale in comparison. The province is also home to the country's giant textile industry, and the manufacturing centre for fertilizer, paper and sugar.

Mpumalanga ('east' or 'sunrise') is South Africa's second smallest province. It is sandwiched between Gauteng and the Mozambique border, an accident of geography which is fast making it the most exciting economic prospect.

Already labelled the 'pocket-sized powerhouse", Mpumalanga is home to vast reserves of coal and hosts a dozen thermal power stations that electrify much of the country, including Sasol's oil-from coal plants, the world's biggest vanadium producer and a massive ferro-alloys and stainless steel plant among others.

It contains 42% of South Africa's high-arable land. This year alone, it will produce 2.5m tons of sugar and by 2004, it will be Africa's biggest single exporter of citrus. The province is already regarded as the centre for eco-tourism following the setting up of mainly commercial game parks on the fringes of Kruger National Park. Mpumalanga provides a number of gateways into the world-famous park which is set to more than double its size, if agreement can be reached between South Africa and Mozambique to mirror the park on the Mozambique side of the border.

Foreign funds have been attracted to upgrade a landing strip near the park's southern border. If it had international airport capacity and could accept wide-bodied airliners, Kruger could become part of an international tourism package that would include the Indian Ocean islands, Victoria Falls and Cape Town.

What ultimately makes Mpumalanga the jewel in the provincial crown is the ambitious R1.5bn transport corridor that will link Gauteng industry with the rehabilitated Mozambican port of Maputo. This will stimulate mining, agricultural and manufacturing enterprises that were formerly thwarted by distance. Already, it is attracting foreign investment.

Mpumalanga's Premier, Mr Mathews Phosa, is confident this year will see a 7% growth rate. Whether or not that is achieved will largely depend on the progress of the corridor.

Tenders for upgrading the road to a freeway and building a new road in Mozambique should be awarded at the end of September when work is expected to begin.

There is no doubt that the geographical face of the South African economy is about to change. Focuses are shifting as new opportunities are created. Gauteng's position as the top money-spinning province is largely a result of its manufacturing sector. Traditionally, it imports raw materials from other provinces.

If provincial leaders such as Mr Phosa get their way, that will soon change. He with other like-minded Premiers, are encouraging investors to locate or relocate to their provinces in a move to add value to the rich natural resources.