2013_14 IDP Review.pdf - KZN Development Planning

AgricultureMiningManufacturingUtilitiesConstructionTradeLogisticsBusinessservicesCommunityservicesGovernmentStructure of the local economy - GVA1995 to 2009 (R’million) in 2005 baseyear prices1995 501 77 458 54 69 468 235 305 240 7161996 571 111 447 58 70 476 233 330 245 7381997 555 117 438 59 76 476 234 348 244 7151998 541 120 398 54 69 475 230 356 258 7241999 513 90 380 54 67 505 225 386 268 6962000 520 90 403 58 71 543 229 395 282 6922001 510 87 418 61 98 583 232 423 289 6962002 533 82 452 68 80 595 255 448 299 6982003 559 96 480 65 87 618 281 478 319 7142004 563 106 537 76 98 650 305 513 326 7232005 533 105 618 89 117 697 341 570 342 7592006 539 108 722 100 131 750 379 632 366 7872007 569 123 835 116 156 798 426 704 394 8252008 633 125 946 127 178 812 464 783 413 8672009 627 168 939 140 193 792 486 801 431 907Ave growth 1.8% 8.4% 7.5% 11.5% 12.7% 4.9% 7.6% 11.6% 5.7% 1.9%The biggest contributors to the local economy is government (17%) andmanufacturing (17%) They are followed by business services (15%), trade(14%), and then agriculture (11%). The weakest sectors are utilities,construction, and mining. One should note that community services onlyconstitute 8% of GVA if government is reported separately. These twocategories are usually lumped together. The aspects are significant in thisregard.Firstly, 25% of the total economy is focused on community andgovernment services but, secondly, only a third of this is directed atcommunity service delivery and two thirds goes towards sustaininggovernment as institution. Logistics that includes the transport sector isvery weak. This can only emphasise the immobility of the local population.This might be a combination of no need to travel and an inability to affordthe cost of travelling. Immobility needs to be overcome if any developmentobjectives need to be achieved.8.2 The drivers of the local economyPriority investment should support those economic sectors that drive localdevelopment and those sectors that it supports. The basis for finding theeconomic drivers in the municipality is a basic/non-basic analysis. 3As the next table shows, The DM and LMs are, when compared to thenational economy, strong in agriculture, community and governmentservices. Umvoti shows a comparative advantage in manufacturing but notin government services. Endumeni and Msinga shows construction as abasic service but this sector is particularly weak in Nqutu and Umvoti. Thesame applies to logistics. The reason for this is not clear. Nqutu is strongin trade while the other areas are marginally weaker.Draft 2013/14 IDP Review Page 190Prepared by Umzinyathi District Municipality22 March 2013