FOCUS enterprise support, investment and trade linkages, and support to key priority sectors (manufacturing, agriculture, tourism, ICT and the green economy). SEZs provide opportunities to exporters located throughout the province – businesses do not necessarily have to be next to the sea and airport to benefit. Simply put, the theory of comparative advantage would position each of the 11 identified districts, so that there is at least one area of economic activity which, relative to other districts, has an advantage by having a lower opportunity cost of production. Some examples of SEZs are Industrial Development Zones, Free Ports, Industrial Parks/Estates, Science and Technology Parks, Sector Development Zones and Spatial Development Corridors. The Oceans Economy The KwaZulu-Natal province is ideally situated to capitalise on the blue economy, as it boasts two of the Sub-Saharan continent's largest ports as well as vast unexploited inland waterways, and incorporating a 600km coastline. Studies have shown that the country’s oceans could generate an estimated GDP contribution of between R129- and R177-billion by 2033. Freight and logistics are centred primarily around two major transport hubs, namely the ports of Richards Bay and Durban, which are in turn connected to national and regional road and rail networks. Present estimates indicate that the local shipbuilding sector currently generates in excess of R1-billion per annum of which 68% is in foreign currency. KZN is the country’s second most prolific boat-building province and close to 6 000 vessels visit the ports of Durban and Richards Bay each year, thereby providing a steady stream of potential vessel repair opportunities. KZN is growing in the freshwater aquaculture sector; most of the trout farms are located within the Midlands, while ornamental koi carp, catfish and tilapia are also evident throughout the province. The province’s large number of inland cold water tributaries is another contributing factor towards its potential status as a prominent aquaculture centre. Manufacturing KwaZulu-Natal's manufacturing sector forms part of a significant share of the South Africa economy and is the second largest in South Africa, and is geared for export, with nearly a third of South Africa's manufactured exports being produced in KwaZulu-Natal. Its diversified nature is significant in the KwaZulu- Natal's economic growth rate, and generates 20 % of provincial employment. Manufacturing production increased by 1.9% in February 2016 compared with February 2015. The largest manufacturing industries are the automobile and component sector, pulp and paper products, chemicals and petrochemicals, and food and beverages. The mining sector, which includes titanium dioxide, zircon along with iron, steel and ferroalloys is important. The automotive manufacturing industry in KwaZulu-Natal is largely concentrated within the eThekwini Municipality, but includes firms in Pietermaritzburg, Stanger, Ladysmith and Richards Bay. The industry employs approximately 20 000 people and contributes roughly R21-billion to the local economy per annum. The key automotive player in the province is Toyota South Africa, which has been the market leader for 30 years, and is the number one-selling vehicle brand in South Africa, and is gearing up for a major vehicle export programme. The current production capacity of Toyota South Africa's plant in Durban is in excess of 100 000 vehicles annually. The South African operation now exports built-up units to both Australia and Europe. KWAZULU-NATAL BUSINESS 2016/17 22
Renewable energy Globally, the case for the green economy is being made abundantly clear. Renewable energy is the only electricity-generation technology whose price has decreased dramatically, solar PV module prices have fallen by 80% over the last five years while wind turbines have become 30% less expensive. South Africa’s wind resource is regarded as among the top five in the world and could sustain 25% of our grid’s capacity. The province’s renewable energy sector incorporates a whole host of sustainable solutions and includes the installation and supply of solar water heaters and heat pumps, solar energy, biomass, biogas, biofuels, wind, hydro, and energy-efficiency measures. This is further stimulated by publicsector initiatives and research services that incentivise investment in the renewable sector. Major solar, biogas and hydropower projects are also paving the way for future development and investment and currently, the net cumulative value of potential renewable energy investments in KZN stands at R3.2-billion. Possibly the biggest competitive advantage that the province possesses is that which emanates from the sugar and timber industries, which are among the largest in the country. The South African Sugar Association (SASA) is ready to engineer an investment of R20bn-R30bn that would not only maintain sugar production but result in two major new energy industries: electricity cogeneration and fuel-ethanol production and would lead to the creation of numerous jobs in the rural community. Water Water is now regarded as the highest global risk in terms of devastation, ahead of nuclear war or a global pandemic. South Africa, the 30th-driest country in the world, not only experiences extreme climate and rainfall fluctuations but its average annual rainfall is half the global average. This rainfall is unevenly distributed throughout a country which currently has access to surface water (77% of total use), groundwater (9% of total use) and recycled water (14% of total use). Water is not only a crucial component for food production, but is also integral to the country’s industrial, mining and powergeneration sectors. It is predicted that over the next five years there will be significant growth in the water infrastructure, wastewater treatment and water recycling sectors. This will become particularly prevalent as the debilitating effects of climate change become more pronounced and the global water industry changes. Consequently the KZN province is investing more in water technologies and infrastructure. Similarly, smart water meters will replace existing ones and huge investments to be made in water infrastructure that includes pumps, pipes, valves, 23 KWAZULU-NATAL BUSINESS 2016/17
OVERVIEW Development Community have
OVERVIEW erses KwaZulu-Natal from w
4
OVERVIEW ferrochrome at Richards Ba
OVERVIEW Corporation (IDC) has been
OVERVIEW Automotive Bell Equipment
OVERVIEW Water New dams and pipelin
OVERVIEW Renewable energy Bio-mass
OVERVIEW Banking and financial serv
OVERVIEW With cellphone access in t
PROFILE Standard Bank, KwaZulu-Nata
PROFILE Celebrating 153 years of mo
PROFILE Generation 8 - creating hum
PROFILE Excellence and caring - a s
OVERVIEW Development finance and SM
OVERVIEW Education and training The
OVERVIEW Tourism Two international
OVERVIEW around Pietermaritzburg, w
LISTING South African National Gove
LISTING Department of Public Enterp
LISTING KwaZulu-Natal Provincial Go
LISTING Harry Gwala District Munici
PROFILE Msunduzi Municipality: City
INDEX INDEX Durban Chamber of Comme
& , 0181 i www.exportkzn.co.za
Loading...
Loading...
Loading...