The city known today as Gqeberha was founded in 1820 by British settlers. The Acting Governor of the Cape Colony, Sir Rufane Donkin, named the settlement in honour of his late wife, Elizabeth. Thus, the name Port Elizabeth appeared on maps. However, in 2021, the city was restored to its indigenous name Gqeberha — the Xhosa name for the Baakens River, which flows through the region. The very first European structure on this site was Fort Frederick, built by the British in 1799.
A key factor in the establishment of Gqeberha was its strategic location on the shores of Algoa Bay in the Indian Ocean. This made it an important seaport, which quickly transformed into a bustling trade hub. Founded to strengthen the British presence on the frontier of the Cape Colony, the city served as both a military and an economic outpost. Rapid development began after the construction of the railway to Kimberley in 1873, which further strengthened its trading position.
From the very beginning, the city's economy was closely linked to maritime trade. Gqeberha became a centre for wool exports, which contributed to its prosperity in the 19th century. Later, in the 20th century, the city gained fame as the automotive capital of South Africa, hosting factories of leading global manufacturers. The city's cultural heritage reflects its multi-layered history: from British colonial architecture to the influence of the various communities that have lived here. The city is also known by its nicknames — "The Friendly City" and "The Windy City".