Socio-Economic Report - Department of Agriculture and ...

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UDM ENVIRONMENTAL MANAGEMENT FRAMEWORK comes from wholesale and retail trade, thus catering and accommodation sector contributes 13 percent to this sector for uMkhanyakude DM. Catering and accommodation is an indicator on tourism in the region (Quantec Research (Pty) Ltd, 2012). Manufacturing follows at 19 percent of GVA, which is mostly made of furniture; wood, paper publishing and printing; and non-metal mineral products (Quantec Research (Pty) Ltd, 2012). Business Services make up 10 percent of GVA, followed by agriculture at 9 percent of GVA. In the local municipality IDP’s and the district IDP, it is noted that agriculture and tourism are the two sectors with the most potential for growth. This is noted despite the fact that neither tourism nor agriculture contributes significantly to the local GVA. When looking at the key sectors in the economy, an important consideration is the employment level of each sector. The data helps gain an insights into which sectors are labour absorptive and which are not. The data from Figure 11 shows the labour absorption, or employment, in 2010 taken from Quantec Research data. Number of Persons 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Employment per Industry General government KZ 271 KZ 272 KZ 273 KZ 274 KZ 275 KZDMA Municipality Community, social and personal services Finance, insurance, real estate and business services Transport, storage and communication Wholesale and retail trade, catering and accommodation Construction Electricity, gas and water Manufacturing Mining and quarrying Agriculture, forestry and fishing Figure 11: Employment per Industry (Quantec Research (Pty) Ltd, 2012) In uMkhanyakude DM General Government and Community, Social, and Personal Services are the two highest contributing sectors to labour absorption. Combined, these two sectors contribute 39 percent of the total labour employed in the area. This is followed by 25 percent of labour is from Wholesale and Retail Trade, Catering and Socio-Economic Assessment Page 46
UDM ENVIRONMENTAL MANAGEMENT FRAMEWORK Accommodation, an indication that both trade and tourism are labour absorptive industries (Quantec Research (Pty) Ltd, 2012). Manufacturing accounts for 9 percent of labour and Agriculture for 8 percent of total labour. The employment figures are aligned to the top contributing industries to GVA. The size of Government and Community, Personal and Social Services industries warrants attention as it highlights, again, a significant and unsustainable dependence on government for income in the area. Table 15 is a direct excerpt of a qualitative prioritisation of the top five sectors, taken from the Business Trust Report on uMkhanyakude: Table 15: Excerpt from qualitative prioritisation of the top five sectors (Business Trust, 2007) Sectors General Government Services Wholesale & Retail Trade; Catering and Accommodat ion Community, Social & Other Personal Services Agriculture, Forestry & Fishing Finance & Business Services Potential for growth Assessment Most local government staff lives outside the node; hence they spend their income largely outside the node. There are no monopoly endowments in this sector in the node, as far as governance skills and capabilities are concerned. Most of the local people don’t have the skills for the kinds of jobs in this sector. The node has great tourism resources which are only partly exploited, including many game parks, the Greater St Lucia Wetland Park, the coastline, etc. This Sector has huge potential to attract an inflow of money, because the resources it has are in high demand outside the node but not readily available elsewhere. There are many employment opportunities in tourism establishments for the local people, which require minimal skills / training Most of the staff live in the node but a large portion of their incomes is remitted to relatives outside the node. There are no monopoly endowments in this sector in the node, as far as skills and capabilities are concerned. Most of the local people don’t have the skills to do the kinds of jobs in this sector The published GDP for agriculture in this node excludes all non-commercial farming. The node has rich, vast agricultural resources which are utilised to a very low extent – The Makhathini Flats area is very fertile with good access to water (i.e. Jozini Dam). The demand for the types of agricultural products produced in the node (especially fruit and vegetables) is high outside the node, hence there is huge potential to stimulate an inflow of money to the node. Most local people have the skills to work in this sector There are no monopoly endowments in this sector in the node, as far as skills and capabilities are concerned. Most of the local people don’t have the skills to be hired for the kinds of jobs in this sector EMPLOYMENT The unemployment rate for 2009 in the district is 26.62 percent with a low labour force participation rate at 28.24 percent, according to Quantec Research. The labour Socio-Economic Assessment Page 47
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