Page 16 - 2019\20 KZN Top Business Portfolio - EBOOK

ECONOMIC OVERVIEW OF THE PROVINCE
OF KWAZULU-NATAL
www.topbusiness.co.za

KEY FOR THE MAP OF
SOUTH AFRICA
KwaZulu-Natal Province
Mpumalanga Province
Limpopo Province
Free State Province
Northwest Province
Gauteng Province
Northern Cape Province
Western Cape Province
Eastern Cape Province

KZN: CONTRIBUTING SIGNIFICANTLY TO South Africa’s economic outlook, as with other deve-
loping economies, is vulnerable to both internal and
ECONOMIC DEVELOPMENT external risks.
KwaZulu-Natal plays a significant role in South Africa’s In addition, as world growth is expected to slow down,
economy and is the second largest contributor to the the South African growth forecast will continue to be
country’s economy. The province contributes 16% to constrained. Consequently, real GDP growth in 2019 is
the national GDP after Gauteng’s share of 34%. estimated to rise to 1.5% and to strengthen moderately
to 2.1% in 2021.
Newly elected President Cyril Ramaphosa has pledged
to focus the government on reforms to rekindle growth
by fixing state owned enterprises and easing policy
uncertainty. Several measures to stimulate the economy
have been identified by the national government.
These include: Infrastructural development through
the infrastructure fund; easing of visa regulations to
enable business travel and to stimulate the tourism
sector; injecting public spending into agriculture; and,
re-developing township economies.
These measures are supported by an investment
strategy that aims to attract both foreign and domestic
private investment.
A Diversified Economy
The diversified nature of the KwaZulu-Natal economy
is a key strength and has enabled a resilient response
to the economic instability experienced. The lead
economic sectors are industrial development and
manufacturing, finance, real estate and business
� National GDP
15