Background
The area around Butterworth was historically populated by Khoi San people. However they were gradually absorbed into the Xhosa people who arrived from further North.
The town of Butterworth was first established as a mission station in 1827. The mission station and white settlement of Butterworth was burnt down three times during the Cape Frontier Wars. Nonetheless, it is one of the oldest white settlements in the Eastern Cape. When the British seized the Cape of Good Hope, many of the Boers trekked North to establish their own republics. The discovery of diamonds (1867) and gold (1886) in South Africa spurred wealth and immigration and intensified the subjugation of the native inhabitants. The town was close to the seat of Hintsa ka Khawuta, chief of the Gcaleka people of the Xhosa tribe. It was then of great strategic importance.
The Ninth Frontier War spelled the end of the Xhosa reign in the area and the Transkei was incorporated into the Cape Colony. But it was never quiet. There were raids between settlers and Xhosa, and turf wars between different Xhosa groups.
Missions were established here and there to try to bring Christianity to the local people, with limited success. This is where historiographer and travel journalist Vuyo Bengu Makasi comes from. It is also the birthplace of Marmaduke Pattie, the highest scoring RAF ace of World War 2.
At the end of the Frontier Wars in 1878, traders began to settle in the region and the town of Butterworth grew into a small industrial centre. Butterworth became a municipality of the Cape Colony in 1904.
Today, it is one of the fastest growing towns in terms of economy and population and the region contains many heritage sites. Explore heritage sites in Mnquma Municipality here.
Tourism investment opportunities
In the region surrounding the municipality, the N2 Wild Coast development as well as the Eastern Seaboard development will have an impact on the future economic activity in and around the Mnquma municipal area.
This coastline is part of the Eastern Cape’s famous Wild Coast, which has an abundance of natural beauty and -resources that should be developed in a sustainable and equitable manner.
The municipality strives to develop tourism destinations in collaboration with investors where all communities will have access to high levels of transportation services, roads and socio-economic opportunities.
Read more about these opportunities here:
Mnquma Local Municipality: An investment location strategically positioned to benefit from regional corridor development and tourism
Contact Mnquma Municipality
Interested parties are invited to get in touch with the Mnquma Local Municipality by sending a brief message here:

Municipal investment profiling: A digital approach
In 2023, the South African Local Government Association (SALGA introduced the “Investment Profile Template Guide for Municipalities in South Africa” to help municipalities present their investment potential. Research showed only 15% of South African municipalities had investment profiles at the time.
However, limited financial and human resources have hindered digital promotion and investment attraction. SALGA has launched a programme to assist municipalities with digital initiatives, and the following municipalities are included in the first phase:
- City of Ekurhuleni (Gauteng)
- West Coast District Municipality (Western Cape)
- Mnquma Local Municipality (Eastern Cape)
- Matjhabeng Local Municipality (Free State)
The main objective of this project is to provide municipalities with a platform to market themselves as investment destinations to both domestic and foreign investors using an already existing platform and access to the Global Africa Network audience.


