Page 14 - KZN Top Business Portfolio 2018

In line with this global trend, the South African economy KwaZulu-Natal’s Economy Sectors
grew by 1.3% last year, and is expected to improve to
1.5% this year and 1.8% in 2019. The key sectors contributing to KwaZulu-Natal’s
economy, particularly in job creation and poverty
“This expected upturn will largely be driven by alleviation, are:
increased business and investor confidence, a stronger � Manufacturing
Rand and lower inflation, and will support consumer � Construction
spending,” said Scott. � Transport
The optimism surrounding the South African economy � Finance
is supported by several country analysts’ reports. Of � Tourism
note, she said that the OECD and the Goldman Sachs � Wholesale and retail trade subsector
reports cite stronger activity in trading partners, which The following discussion provides a broad overview
is expected to boost exports, as well as investment to of the provincial economy and includes a few
support growth in 2019.
examples of initiatives planned or underway but is by
This turnaround in the economies of the province’s no means exhaustive of all sectors or projects.
trading partners will benefit KwaZulu-Natal. The Agriculture
province contributes meaningfully to the South African
GDP; KwaZulu-Natal’s GDP contribution translates to Agriculture is a major economic and social force in
16% of the national output. KwaZulu-Natal and is slowly recovering from the
severe droughts experienced. Although the province
The provincial economic outlook is also on an upward covers a small portion of South Africa’s land area,
trajectory but expected to grow by 1.2% and 1.3% in a significant percentage of the country’s small-
2018 and 2019, respectively.
scale farmers are based here. The midlands area
The current unemployment rate in KwaZulu-Natal is between Pietermaritzburg and the Drakensberg
estimated at 22.3%, compared to the national average has a concentration of vegetable, dairy and stock-
of 26.7%. The National Development Plan (NDP) has set farms. The largest Jersey dairy herd in the country
a target for the country to create 11 million jobs by 2030. is in Dundee.
KwaZulu-Natal has committed to create 2.1 million of
those jobs within the province through its Provincial The coastal belt yields bananas, mangoes, pineapples
and other tropical fruit. The KwaZulu-Natal coastal
Growth and Development Plan (PGDP).
regions are also fast establishing themselves as the
International trade plays an important role in ensuring best in the world to grow macadamia trees with much
that KwaZulu-Natal is a key contributor to South Africa’s potential for growth in the macadamia nut industry.
economy.
Forestry in the areas around Vryheid, Eshowe,
The Durban Chamber of Commerce and Industry Richmond, Harding and Ngome is another major
Chamber President Musa Makhunga said exports were source of income, the largest forest owners being
one of the oldest forms of economic transfer available. Sappi and Mondi.
“They don’t only promote trade, they also stimulate
local economic activities through job creation,” said The KwaZulu-Natal sugar industry is an important
Makhunga. contributor to the economy, which is characterised
by investments, foreign exchange earnings, high
INTERNATIONAL TRADE employment and linkages with major suppliers, support
(Source TIKZN KZN) industries and customers. Tongaat Hulett and Illovo
R160 Sugar South Africa are the major sugar producers.
R140 The agricultural sector is seen as a critical employer
Rand in Billions R100 with larger scale farming operations not only creating
R120
R80
many jobs in rural communities, but also being
R60
R40
employment opportunities within the agri-processing
R20 a catalyst in creating downstream business and
R0
2014 2015 2016 2017 and manufacturing sectors.
KZN EXPORTS KZN IMPORTS KZN TRADE BALANCE The South African government recently launched a
(Rand Billions) 2014 2015 2016 2017 R37.5 million biorefinery facility in Durban which is
KZN EXPORTS R 102.0 R 118.9 R 130.1 R 139.7 set to extract maximum value from biomass waste.
KZN IMPORTS R 101.5 R 116.3 R 117.6 R 120.2
KZN TRADE BALANCE R 0.6 R 2.6 R 12.5 R 19.5 The facility, which is a first for South Africa, will
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