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Socio Economic - Transnet

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each economic sector in the municipality and compare the GVA of the Municipality to the GertSibande DM, the Mpumalanga province and the country as a whole.The primary sector of the economy involves changing natural resources into primary products. Mostproducts from this sector are considered raw materials for other industries. Major businesses in thissector normally include agriculture, agribusiness, fishing, forestry and all mining and quarryingindustries.The secondary sector generally takes the output of the primary sector and manufactures finishedgoods or where they are suitable for use by other businesses, for export, or sale to domesticconsumers. This sector is often divided into light industry and heavy industry. The sector is made upof manufacturing, electricity, gas and water, and construction.The tertiary or services sector consists of the "soft" parts of the economy, i.e. activities where peopleoffer their knowledge and time to improve productivity, performance, potential, and sustainability. Thebasic characteristic of this sector is the production of services instead of end products. Businesses inthis sector include wholesale and retail trade, catering and accommodation, transport, storage,communication, finance, insurance, real estate, business services, community, social and personalservices, and general government.Sectoral GVA contributions - Msakaligwa LM3 0002 5002 0001 5001 00050001995199619971998GVA Contribution (R'million)1999200020012002200320042005200620072008200920102011Figure 13: GVS per economic sector (R'million)Primary sector Secondary sector Tertiary sectorFigure 13 indicates the largest and strongest growing sector in Msukaligwa’s economy is the tertiarysector. This means its economy is dominated by the service sector. The secondary sector has shownsome increase in recent years. The primary sector is getting smaller and does not contribute a lot tothe economy in terms of GVA.Going further and analysing the sub sectors in the economy (see Figure 14), it is clear thatMsukaligwa is experiencing strong growth in all industries with the exception of the mining industry. Italso becomes apparent why Msukaligwa’s tertiary economic sector is so strong. The economy isdriven by manufacturing activities with the finance, insurance, real estate and business servicesshowing strong growth. General government is also a sector that is improving and contributing to theeconomy more at a steady increasing pace.5 July 2013 Page 21

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