Clusters are typically groups of businesses or organizations that can be located in close proximity to each other and are involved in similar or related industries. The purpose of clusters is to promote the growth and competitiveness of these businesses by fostering collaboration and information sharing, as well as by providing access to specialized resources and services.

For example, a cluster of technology companies in South Africa may work together to share information about trends and best practices in the technology industry, as well as to develop new products and technologies that can help drive growth and innovation in the sector.

The key benefits of clusters for businesses and organizations include:

• Increased competitiveness – By working together and sharing information, cluster members can benefit from economies of scale, lower costs, and improved access to specialized resources and services.
• Improved access to markets – Clusters can help businesses and organizations expand their reach and increase their access to new markets, both domestically and internationally.
• Increased innovation – Clusters can help drive innovation by fostering collaboration and knowledge sharing among businesses and organizations in a particular sector or industry.

In general, clusters play an important role in promoting economic growth and competitiveness in South Africa by supporting the development and growth of key industries and sectors.