The Joe Gqabi District Municipality lies in the north of the Eastern Cape and forms a border to the Free State. The district is dominated by the Drakensberg Mountains. To the East of the district it is bordered by Lesotho, and by the Limpopo Province in the North West. The main features of the district are the Orange River, The Gariep Dam and the Southern Drakensberg mountains. Joe Gqabi shares its borders with the Chris Hani, Oliver Tambo and Alfred Nzo districts.

The district has a small economy, but the ex-Transkei areas provide major subsistence economic activity. Agriculture predominates in Joe Gqabi and provides 29% of the districts formal employment. The most significant farming occupation is livestock, and small-stock farming in the karoo areas produce wool, mohair and mutton. Cattle farming is also present in the ex-Transkei areas as well as goat and sheep farming.

Along the Orange River is the main place for maize growing, and wheat growing goes on in the foothills of the Drakensberg. Joe Gqabi also has large forestry plantations in the areas around Maclear, Ugie and Mount Fletcher. Manufacturing also contributes to 5% of employment in the Joe Gqabi District. Food processing is the most important industry in manufacturing and is centered in Aliwal North, as well as limited furniture production which takes place. Tourism in the district centres on three areas, namely the Southern Drakensberg which provides ample tourism adventures and eco-tourism; the ‘friendly N6’ where people can enjoy ‘stop over’ tourism; and Aliwal North hosts a spa.