This report accentuates the difficulties facing the Transkei after independence. Industrial and agricultural development is the main growth points. However the prediction for growth in the agricultural sector did not realize and to become self-sufficient in food production has become imperative. Therefore economic development is the first priority for the Transkei government but to achieve that mobilization of its natural and human resources together with foreign investments is necessary.
The severance of diplomatic relations with South Africa over the land claims issue was a contentious issue because of their high dependency on South Africa. The land claim issue on Griqualand East as well as the implication for South Africa and Transkei is highlighted.