Orania releases 2023 census

The latest census provides little detail on age demographics, but does provide strong clues to quality of life, such as an unusually low food price inflation

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Newsroom

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November 4, 2024

Orania releases 2023 census

Orania is already known for its exemplary quality of life. Despite (or perhaps because of) the lack of national government support, Orania has experienced impressive population growth, expanding demand for local businesses, and progress in infrastructure and education.

The latest census for the self-sustaining Afrikaner enclave on the banks of the Orange River, was released last week, and here we break down some of the headline statistics. While the census does not indicate a breakdown of the population by age group, economic sector or income, it does include some optimistic information on the economic performance of the town.

Orania came very close to breeching the 3 000 resident threshold, achieving a population of 2 874 by December, triple the population from ten years before. From 2019 to 2023, Orania’s population grew at an average annual rate of 12.8%, beating the annual growth rate of the surrounding municipality, which stands at roughly 3%, meaning that sometime in the late 2030s, Orania is likely to match the size of the sourrounding population of Thembelihle.

But this is not an indiscriminate urbanisation rush. Because of the town’s selective immigration policy, they have only acquired those who are most likely to integrate and contribute - the most self-reliant, and the most considerate citizens. By attracting the cream of the crop of the Afrikaans community, this rapid growth has enriched the town’s labor market by attracting a wider variety of skills and talent, ultimately diversifying its economic base.

The number of enterprises with an annual turnover exceeding R250,000 grew by 68% over the past year, with most falling into three primary categories: services (44.6%), trade (23.1%), and construction (13.2%). The "services" category includes that provided by the private town council, and for the first time, is represented in the report, as 11% of the local economy.

While farming does contribute significantly to the local economy, most farms which provide to Orania are outside its borders, and those included within Orania proper constitute only 2% of their economy. Joost Strydom, the town's leader and spokesman, has said they hope to grow and expand this sector, and hopefully increase their independence in this regard.

Economic growth has also been accommodated by rising wages and almost zero unemployment, yet paradoxically, the local economy has seen only an extremely modest consumer price inflation, at 3.8% per annum, significantly lower than South Africa’s national food inflation rate of 8.5% in 2023. The town’s ability to contain food inflation also indicates a robust logistics supply chain, and an efficient local agricultural sector.

This combination of rising wages, rising profits and stabilised cost has led to an increased quality of life which has counteracted the pressures of South Africa’s chronic monetary inflation. This phenomenon is generally known as “deflationary growth”, and was a staple feature of boom period in the pre-fiat currency era - as value created in the economy outpaces the availability of money, prices fall in nominal terms.

Of course, this is merely relative, and it would take a truly stratospheric growth to eliminate the effects of South African inflationary pressures, some of which are monetary, some of which are due to structural costs of living such as security, insurance, and general decay.

Sympathetic investors realise this, and in 2023, capital investment by various institutions reached R621 million, growing at an impressive annual rate of 22.1% over the past five years.

The town’s construction sector is of course the most significant economic indicator of its growth. In 2023, Orania saw a 3.4% increase in building applications, a modest slowdown from last year, but double that of 2019, suggesting strong, albeit nonlinear  expansion.

The demand for industrial buildings saw the highest growth, reflecting increased business interest in establishing operations in the area. Consistent growth in building extensions over the past five years indicates residents’ optimism about the town’s future, as they invest in both residential and commercial properties.

Only 3% of businesses expressed less confidence this year, with a slight shift of 2% toward a “moderate” outlook, demonstrating robust levels of business confidence. Yet business owners surveyed expect economic conditions will remain steady and that returns will be relatively modest, and are cautious about the performance of the broader South African economy.

Education has also expanded, with Bo-Karoo Opleiding taking advantage of the town’s demographics, which are slightly younger than most white communities, as well as a growing number of homeschooling cooperatives. The number of students has grown by an annual average of 9%, with the college building new classrooms and workshops to accommodate the expansion.

Distance education, in particular, has seen strong growth, with student enrollment increasing by an average of 17.4% annually over the past five years. The total number of tertiary students now stands at 272, marking a 90% rise, and accounting for just shy of 10% of the population. This small but growing community is being seen as a future opportunity to “export” knowledge beyond Orania’s borders.

Orania has managed to generate significant own revenue for upkeep and basic services. In 2023, they managed to collect R17.4 million, having grown at an average annual rate of 14.1% over the past five years. This steady increase reflects the town’s commitment to self-reliance and fiscal sustainability, and has provided the town with several major recent infrastructure expansions, including its own wastewater treatment systems and solar power generation and storage.

Such capital formation not only creates job opportunities but also lays the groundwork for future expansion, enhancing Orania’s economic stability and appeal to potential residents and businesses.

In their annual report, Orania also records the local climatic conditions which offers an interesting backdrop to their demographic and . Their semi-arid climate imposes specific challenges. While the area receives light rainfall, averaging between 200-500mm per year, the rain only falls in a brief wet season, outside of which the place remains extremely arid.

In 2023, Orania recorded 396.2 mm of rainfall, notably less than the 450.4 mm received the previous year. The year also saw extreme temperatures, peaking at 40.7°C and dropping to -2.9°C, indicating a warmer trend compared to previous years, when average highs reached 37.4°C and lows averaged -6.15°C.

As Orania continues to grow, many of the same challenges will apply. But these are challenges Orania has proven more than capabe of handling.

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