Page 16 - KZN Top Business Portfolio 2024/5 - ebook
P. 16
KwaZulu-Natal’s sugar industry plays a vital role in the While education provision within the province remains
local economy, generating significant employment unequal, it plays a pivotal role in the provincial economy,
and supporting industries such as transport and both through direct service provision and in uplifting
equipment suppliers. The province is home to major the population. Investment in education contributes
sugar mills and processing plants, and the industry is significantly to socio-economic development, provid-
a major exporter, particularly to the European Union ing a foundation for skills development and improving
under the Southern African Development Community labour market outcomes.
(SADC) agreements.
KwaZulu-Natal also benefits from South Africa’s thriving
The Midlands, stretching between Pietermaritzburg maritime sector, which generates billions of Rand
and the Drakensberg, is known for its concentration of annually, promoting economic growth and creating
vegetable, dairy, and livestock farms. employment. Education, particularly in fields related to
the maritime industry, positions the province as a key
Tropical fruits like bananas, mangoes, and pineapples
are predominantly cultivated along the coastal regions. player in this lucrative sector.
Macadamia nuts, an increasingly profitable export Finance Sector
product, are gaining a global reputation, alongside The finance sector is a key pillar of KwaZulu-Natal’s
the province’s expanding avocado industry. These economy, employing a substantial portion of the
crops contribute to the province’s rising profile as an provincial workforce. The province boasts a dynamic
agricultural exporter. and expanding finance, real estate, and business services
The province produces over 50% of South Africa’s sector, attracting both domestic and international
timber, with extensive plantations in Vryheid, Eshowe, institutions. These institutions provide a comprehensive
Richmond, Harding, and Ngome. Large companies like range of financial services, including commercial and
Sappi and Mondi dominate the sector, providing wood retail banking, mortgage lending, insurance, and
and pulp for both domestic and international markets. investment management. As South Africa transitions
Forestry also supports secondary industries such as towards a knowledge-based economy, there is an
paper and packaging, further adding to the province’s increasing focus on technology, e-commerce, and digital
economic base. financial services, which is transforming the sector.
Opportunities for renewable energy projects, partic- A major driver of growth within this sector is Business
ularly those involving biomass from the sugar and Process Outsourcing (BPO), which has seen significant
forestry sectors, are emerging as the province positions expansion in recent years. There were 6 018 new
itself as a leader in sustainability. The sugar industry, jobs created countrywide in the BPO and Global
in particular, generates large amounts of biomass that Business Services (GBS) sectors between October and
can be converted into biofuels or used in cogeneration December 2023 – 39% of which were in KwaZulu-Natal.
plants to produce electricity. In July 2023, it was reported that the sector contributed
around R1.3 billion to the country’s export revenue.
Emerging prospects also exist in smart agriculture
and agro-processing, with various initiatives aimed For the past five years, Durban has been rated the best
at supporting small-scale farmers and promoting global destination for contact centres, underscoring the
sustainable agricultural practices. Despite covering province’s growing prominence in this industry.
a relatively small portion of the country’s land, the The KZN South Coast is also emerging as a top
province is home to a substantial percentage of South destination. Deborah Ludick, Acting CEO of South
Africa’s small-scale farmers. Coast Tourism & Investment Enterprise (SCTIE) said the
Community, Social, and Personal Services Sector KZN South Coast was certainly primed for investment
in the BPO sector: “We have a business-friendly
The community, social, and personal services sector
encompasses a range of activities critical to KwaZulu- investment climate supported by the launch of our Ugu
Natal’s socio-economic landscape. These include: District One Stop Shop, with access to an abundance
of young, educated, and tech-savvy workers ready
Education for employment. The sector also promotes socially
Health and Social Work conscious practices while upskilling the young and
Sewage and Refuse Disposal, Sanitation, and disadvantaged individuals for further career prospects,
Similar Activities making it an industry worth promoting.”
Activities of Membership Organisations
Recreational, Cultural, and Sporting Activities The BPO sector’s opportunities extend beyond
Households traditional customer service roles to more specialised
Non-Profit Institutions services such as legal process outsourcing, digital
Informal Sector animation, film processing, digital health diagnostics,
14
