South African Business is an annual guide to business and investment in South Africa. Published by Global Africa Network Media in Cape Town, the 2016 edition is in its fourth year of publication.
The publication provides up-to-date information and analyses of the country's key economic sectors, as well as detailed economic overviews of each of the nine provinces in South Africa.
OVERVIEW Regional
OVERVIEW Regional overview: KwaZulu-Natal Golden beaches, tropical palms, sugar plantations as far as the eye can see and a balmy climate almost all year round. That, in a nutshell, is KwaZulu-Natal, South Africa’s “Garden Province”. Growth areas The province has shown considerable growth in the business services, transport and retail sectors. This manufacturing hub makes up almost a third of South Africa’s m Gauteng and KwaZulu-Natal account for 42% of the country’s population with Census 2011 revealing the economic heartland pipped its coastal cousin to the post in claiming the most residents. For the first time, Gauteng is now home to more SouthAfricans than KwaZulu-Natal with 12.3-million people (23.7%) living inland against only 10.3-million people (19.8%) in KwaZulu-Natal. KwaZulu-Natal has made significant strides in implementing the objectives in line with the National Growth and Development Plan. KwaZulu-Natal employment has risen from 2.1-million people in 2010 to 2.4-million currently, despite the sluggish economic environment. It is these statistics that speak to the poverty eradication plan and dove-tail on a microeconomic level with the development initiatives and potential in places like the Makhathini Flats. In July Premier Sezo Mchunu announced the Makhathini Flats would receive a R1.1-billion investment to revamp agriculture and improve agricultural infrastructure. The main focus of the investment would be livestock, irrigation infrastructure and planting various rare crops including ground nuts and cassava. KwaZulu-Natal has also implemented the first stage of Operation Phakisa, the national initiative aimed at unlocking South Africa’s economic potential. Food production Food production makes a mark with companies such as Unilever, Illovo Sugar, Tongaat- Hulett Group, Rainbow Chicken and Clover. Industrial investment plays a substantial role in the provincial economy with two of the country’s busiest ports situated there, Richards Bay and Durban. The international trade success is to some extent dependent on developed transport and logistics infrastructure. Recently, the Dube TradePort has driven economic growth. It is home to the King Shaka International Airport, an agricultural greenhouse, a cargo terminal and various other sections relating to trade, business and transport, all on 3 000 hectares of land just north of Durban. SOUTH AFRICAN BUSINESS 2016 170
KwaZulu-Natal sector contribution. SOURCE: STATS SA GENERAL GOVERNMENT SERVICES 13% PERSONAL SERVICES 6% FINANCE, REAL ESTATE & BUSINESS SERVICES 20% TRANSPORT, STORAGE & COMMUNICATION 14% WHOLESALE, RETAIL, MOTOR TRADE, CATERING & ACCOMMODATION 14% CONSTRUCTION 3% ELECTRICITY, GAS & WATER 2% MANUFACTURING 22% MINING & QUARRYING 2% AGRICULTURE, FORESTRY & FISHING 4% OVERVIEW It has attracted a R2-billion foreign direct investment through Indian business conglomerate Action Group and is making a solid contribution to KwaZulu- Natal’s economy. Economic future The Renewable Energy Development Hub (RED Hub), a partnership between the provincial government, eThekwini Municipality, Ilembe District Municipality and private firms, is leading a renewable energy project. The deal was confirmed in March 2013 and will consist of various components including laboratories, a renewable-energy education and training facility (which will involve Durban University of Technology), as well as a technology hub for research and development. It will also host a manufacturing and technicalservices sector for the renewable-energy industry. Major new projects The R1.5-billion Inkululeko Development Project, piloted within the Ndumo community, is an integrated multi-purpose and multi-sectoral initiative that includes constructing high quality education centres, health services, modern roads and libraries, clean running water, sustainable livelihoods, job creation and community centres for vulnerable children and orphans. In terms of Inkuleleko, unveiled in December 2013, the provincial Department of Education has several projects including rebuilding St Phillips, Maphindela and Thelemama primary schools as well as building an as-yet unnamed new model school. “This is a project developed as part of the commitment to improving the lives of people who live in rural areas,” said Senzo Mchunu, Premier of KwaZulu-Natal today when he launched the province’s master plan to combat prevalent poverty affecting. Mchunu is also passionate about reducing HIV/Aids in the province, clearing the slums and raising the standards of the most vulnerable in society. In that debate was the desire to create 900 000 new jobs by 2020. Mchunu stressed that by assisting the vulnerable it hd enabled government to reduce the “sense of exposure” that such communities felt and, in so doing, had helped precipitate economic growth by encouraging their participation. KWAZULU-NATAL www.kwazulunatal.gov.za Capital Population Area Premier Pietermaritzburg 10 919 100 (2015) 94 361 km 2 Senzo Mchunu (ANC) Languages isiZulu, English 171 SOUTH AFRICAN BUSINESS 2016
