KwaZulu-Natal has a strong and varied economy. Located on South Africa’s east coast, the province has a mix of heavy and light industry, a strong commercial sector and good services in every fi eld. The World Cup helped to shine the spotlight on KwaZulu-Natal in 2010 and the provincial government is working to keep up the momentum in world forums. The hosting of the International Olympic Committee’s meeting in July 2011, serves as another reminder to event planners of just how well the the province hosts annual events such as the huge Comrades Marathon. KwaZulu-Natal is positioning itself as a multi-sport venue of the future.

From steel works in Newcastle, aluminium smelters in Richards Bay and oil refi neries, chemicals and plastics plants south of Durban, KwaZulu-Natal has a wide range of heavy industrial capacity.

KwaZulu-Natal is a relatively small province but it has an important mining sector (concentrated in the area north of Richards Bay) and a thriving agriculture sector with nationally important forestry and sugar sectors. With two world-class ports and a new multibillion- rand freight and passenger international airport, the province is well placed to strengthen its position as a leader in import and export and to increase the number of foreign tourists who touch down in the province. The Richards Bay Coal Terminal exports massive quantities of coal, while the Port of Durban is the busiest port in Africa. The Dube TradePort and King Shaka International Airport was opened in May 2010 and has the potential to boost the regional economy in a number of sectors, particularly agriculture and tourism.

In the field of manufacturing, the province is well served. It has a number of vehicle manufacturers with Toyota pre-eminent. Man Trucks, Volvo and Bell Equipment are other important companies and there are a large number of firms that support the vehicle industry (Duys Engineering and Dunlop are two examples). The food and beverage sector is strong, as are the chemicals, plastics and packaging sectors.

Tourism plays a vital role in the economy of the region, with the conference and events sector supported by excellent facilities. The jewel in the crown is the huge Albert Luthuli International Convention Centre complex which hosts the annual Tourism Indaba. The province’s excellent climate lends itself to every kind of outdoor pursuit and its excellent beaches are always popular. Big sports events are regularly hosted in KwaZulu-Natal, which has become something of a home to mass-participation events such as the Comrades Marathon and the Dusi Canoe race. The province has excellent game and nature reserves. iSimangaliso Wetland Park was named as one of three sites in the world with the best sustainable tourism management policies in 2010. The park is a World Heritage Site and helps to fund 80 small businesses associated with its business as a tourist site.

Geography
The mixed topography of the province allows for varied agriculture, animal husbandry and horticulture. The lowland area along the Indian Ocean coastline is made up of subtropical thickets and Afromontane forest. High humidity is experienced, especially in the far north, and this is a summer rainfall area. The centrally located Midlands is on a grassland plateau among rolling hills. Temperatures generally get colder in the far west and northern reaches of the province. The mountainous area in the west – the Drakensberg – comprises solid walls of basalt and is the source of the region’s many strongly running rivers. Regular and heavy winter snowfalls support tourist enterprises. The Lubombo mountains in the north are granite formations that run in parallel.

Economic performance
The provincial economy grew at 3.9% in the fourth quarter of 2010, an encouraging figure after the difficulties of 2008 and 2009. The annual rate for 2010 was 2.6% compared to a negative figure of -1.8% in 2009. The fact that most of the major infrastructure projects are now complete poses particular challenges for the province’s economic planners. A New Growth Plan has been formulated at provincial government level. This will be discussed by the KwaZulu-Natal Economic Council and the Broad-based Black Economic Empowerment Advisory Council.

It is likely that a key focus will be manufacturing and more particularly, manufacturing that adds value to local raw materials. This is in line with national industrial policy and makes sense in a province that has such ready access to export facilities such as the ports of Durban and Richards Bay and the Dube TradePort. The other focus of activity will be the newly licensed Richards Bay Industrial Development Zone (RBIDZ). Here the best incentives will be available to investors willing to beneficiate local raw materials and stimulate employment. Particular encouragement will be given to investors whose business is likely to create opportunities for the development of local small, medium and micro enterprises able to supply or service the investor’s business.

Investment
The investment agency of the provincial government, Trade & Investment KwaZulu-Natal (TIKZN), celebrates its 10th anniversary in 2011 as a fully fledged public entity. An Investment Protocol has been developed for the province, outlining regulations and procedures for the setting up of a business. TIKZN routinely exceeds its annual targets and by all reports will do the same in 2011 in aiming to attract R750-million worth of investment. Potential investors in specific regions have been targeted by TIKZN, so for example, presentations have been made in Queensland, Australia, Benguela in Angola and Baden-Württemberg in Germany.

Priority sectors identified by the agency are
• water infrastructure
• coal mining
• BPO and call centres

Specific initiatives to target investment have paid off in the form of growth in information communications technology (ICT), call centres and the film industry. The investment agency reported R638-million worth of investments in 2009/10 with a focus on the services and mining sectors.

Regions
KwaZulu-Natal has 10 district municipalities, the most of any province in South Africa. In economic terms, the province offers diverse opportunities:

Northern region
The economic powerhouse is Newcastle in the north-west: coal mining, steel processing and manufacturing are major activities. Some old coal mines are being reopened by new coal companies to cater for the country’s power stations’ demand for the fuel. Game farms, trout fishing and hiking are part of an attractive package for tourists, and Zululand is a popular destination for cultural experiences. The whole region is rich in Anglo-Boer War history.

Eastern region
Although most of this area is very rural, Richards Bay is one of the country’s industrial hotspots because of its coal terminal and port and aluminium smelters. Mining is an important sector. The other major urban centre is Empangeni which has several educational institutions. The newly completed King Shaka International Airport is kickstarting massive new investment in the area. The iLembe District Municipality is particularly active in seeking out new investors.

Western region
Also known as the Midlands, this is a fertile agricultural region, producing sugar cane, fruit, animal products, forestry and dairy products. Pietermaritzburg is the provincial capital and home to a major aluminium producer along with several manufacturing concerns, including textiles, furniture, leather goods and food. The city has good transport links along the N3 national highway, excellent schools and a lively arts scene. The Midlands Meander is a popular tourist destination.

Southern region
This area is the province’s most populous. The city of Durban has experienced booms in sectors such as automotive, ICT, film and call centres. Its conference facilities are well utilised but many opportunities still exist in chemicals and industrial chemicals, food and beverages, infrastructure development and tourism. Further south, plans are in place to upgrade Margate’s airport and Port Shepstone’s beachfront.

Key facts
Capital: Pietermaritzburg
Main cities and towns: Durban, Ulundi, Eshowe, Newcastle, Richards Bay
Premier: Dr Zweli Mkhize
Population: 10.4 million
Geographic area: 93 378 square kilometres
GDP (2007): R202.9-billion
Contribution to national GDP (2007): 16.4%
Per capita GDP: R20 267
Share of total SA area: 7.6%
Economically active population: 3.0 million (2007 estimate)