Socio Economic - Transnet

9008007006005004003002001000GVA output per industry - Msakaligwa LM1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Agriculture, forestry and fishingMining and quarryingManufacturingElectricity, gas and waterConstructionWholesale and retail trade, catering and accommodationTransport, storage and communicationFinance, insurance, real estate and business servicesTI: Community, social and personal servicesGeneral governmentFigure 14: Economic sub sectors (R’million)3.3.3.2 Diversification and concentration in the economyThe level of diversification or concentration of a municipal area’s economy is measured by a tressindex. A tress index of zero represents a totally diversified economy. On the other hand, the higherthe index (closer to 100), the more concentrated or vulnerable the municipal area’s economy toexogenous variables, such as adverse climatic conditions, commodity price fluctuations, etc.50Tress Index - Msukaligwa LM40302010019951996199719981999200020012002200320042005200620072008200920102011Figure 15: Tress index (10 industries)The comparative tress index displayed in Figure 15 shows that Msukaligwa LMs economy isdiversifying. Not only is the municipality’s economy less vulnerable/diversified than it was in 1995, butit is also showing higher diversification than the Mpumalanga province and South Africa.3.3.3.3 Location coefficientSouth Africa Mpumalanga Msukaligwa Local MunicipalityBasic/Non-Basic ratios are calculated in order to determine the drivers of an economy. The ratio isexpressed as the employment in a sector in the local economy divided by the total employment in the5 July 2013 Page 22