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UTHUKELA DISTRICT INVESTMENT PROMOTION AND FACILITATION STRATEGY FIRST DRAFT SITUATIONAL ANALYSIS REPORT (JUNE 2013)

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SUBMITTED TO:

NOVEMBER 2010

NOVEMBER 2010

DEVELOPMENT OF UTHUKELA DISTRICT

MUNICIPALITY INVESTMENT PROMOTION AND

FACILITATION STRATEGY

Situational Analysis: June 2013

Urban-Econ Development

Economists

37 Hunt Road, Glenwood

Tel: 031 – 202 9673

Fax: 031 – 202 9675


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TABLE OF CONTENTS

1. INTRODUCTION ............................................................................................................................................ 3

1.1 BACKGROUND TO THE STUDY ...................................................................................................................... 3 1.2 OVERALL OBJECTIVES OF THE STUDY ........................................................................................................... 3 1.3 UTHUKELA INVESTMENT PROMOTION AND FACILITATION STRATEGY PROCESS ........................................ 3 1.4 STRATEGIC APPROACH AND METHODOLOGY .............................................................................................. 4 1.5 SITUATIONAL ANALYSIS OBJECTIVES ............................................................................................................ 5

1.5.1 OBJECTIVES ........................................................................................................................................... 6 1.5.2 METHODOLOGY .................................................................................................................................... 6

1.6 REPORT OUTLINE .......................................................................................................................................... 6 2. UNDERSTANDING INVESTMENT AND INVESTMENT FACILITATION .............................................................. 7

2.1 BUILDING A CASE FOR INVESTMENT PROMOTION IN UTHUKELA ............................................................... 7 2.1.1 DEFINING INVESTMENT PROMOTION AND FACILITATION ................................................................... 7 2.1.2 KEY BARRIERS AND DRIVERS TO INVESTMENT ..................................................................................... 7 2.1.3 KEY SUCCESS FACTORS OF INVESTMENT PROMOTION ........................................................................ 8 2.1.4 THE NEED FOR INVESTMENT PROMOTION, ATTRACTION AND FACILITATION IN SOUTH AFRICA ....... 9

2.2 REVIEW OF INVESTMENT POLICY ENVIRONMENT ..................................................................................... 10 2.2.1 NATIONAL STRATEGIC FRAMEWORK .................................................................................................. 10 2.2.2 PROVINCIAL STRATEGIC FRAMEWORK ............................................................................................... 15 2.2.3 LOCAL STRATEGIC FRAMEWORK ........................................................................................................ 18

2.3 INVESTMENT ENVIRONMENT: KEY ROLE PLAYERS ..................................................................................... 24 2.3.1 NATIONAL ROLE-PLAYERS ................................................................................................................... 24 2.3.2 PROVINCIAL ROLE-PLAYERS ................................................................................................................ 26 2.3.3 LOCAL ROLE-PLAYERS .......................................................................................................................... 27 SUMMARY .................................................................................................................................................... 28

3 UTHUKELA DISTRICT OVERVIEW ................................................................................................................. 30 3.1 BACKGROUND ............................................................................................................................................ 30

3.1.1 DEMOGRAPHICS ................................................................................................................................. 30 3.1.2 POPULATION BREAKDOWN PER GROUP ............................................................................................ 30 3.1.3 AGE AND GENDER ............................................................................................................................... 31

3.2 SPATIAL OVERVIEW AND ANALYSIS............................................................................................................ 31 3.2.1 ENVIRONMENTAL AREAS .................................................................................................................... 32 3.2.2 KEY ECONOMIC NODES AND CORRIDORS ........................................................................................... 33

4 UTHUKELA ECONOMIC SYNOPSIS ............................................................................................................... 35 4.1 SECTORAL CONTRIBUTION TO THE GVA IN THE DISTRICT ......................................................................... 35 4.2 SECTOR CONTRIBUTION TO THE EMPLOYMENT IN THE DISTRICT ............................................................. 37 4.3 UTHUKELA IN-DEPTH SECTOR ANALYSIS .................................................................................................... 38

4.3.1 AGRICULTURE ..................................................................................................................................... 38 4.3.2 TOURISM ............................................................................................................................................. 39 4.3.3 MANUFACTURING ............................................................................................................................... 40 4.3.4 TRANSPORP SECTOR ........................................................................................................................... 41 4.3.5 COMMERCIAL SECTOR ........................................................................................................................ 42

5 UTHUKELA INVESTMENT PROFILE ............................................................................................................... 44 5.1 UTHUKELA PUBLIC SECTOR INVESTMENT .................................................................................................. 44 5.2 UTHUKELA PRIVATE SECTOR INVESTMENT ................................................................................................ 47 5.3 UTHUKELA INVESTMENT CONSTRAINTS .................................................................................................... 52

5.3.1 BUSINESS RELATED CONSTRAINTS ...................................................................................................... 52 5.3.2 INFRASTRUCTURAL CONSTRAINTS ...................................................................................................... 52 5.3.3 GENERAL CONSTRAINTS...................................................................................................................... 53

CONCLUSION ................................................................................................................................................. 55


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1. INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Lazarus Developments in collaboration with Urban-Econ Development Economists were

commissioned by KZN Department of Economic Development and Tourism, to develop a District

Municipality Investment Promotion and Facilitation Strategies (IPFS) for uThukela District

Municipality.

This project emanates from the KwaZulu-Natal Provincial Investment Strategy which recommends

that District strategies be created to unpack details at a regional level. This investment strategy is

therefore directly aligned to the KwaZulu-Natal Provincial Investment Strategy. The KZN Provincial

Investment Strategy acknowledges that research is fundamental in identifying ways to fully utilise

the competitive and comparative advantages of the various districts. Creation of a DMIPFS for the

different districts is recognition of the importance of investment at local level, and will be used to

identify and promote priority sectors within the UThukela District.

1.2 OVERALL OBJECTIVES OF THE STUDY

a) To identify the strengths and weaknesses, and develop a DIPFS based on the competitive

and comparative advantages of the district;

b) To identify and promote priority sectors within the district;

c) To develop a comprehensive and pragmatic (SMART) implementation strategy outlining how

investment aimed at maximising resource usage will take place at the local level. This will

essentially translate into projects/interventions required;

d) To develop a monitoring and evaluation framework, with short, medium and long term

targets,

e) Ensure alignment of investment promotion and facilitation initiatives between local and

provincial authorities.

1.3 UTHUKELA INVESTMENT PROMOTION AND FACILITATION STRATEGY PROCESS

The UThukela Investment Promotion and Facilitation Strategy is broken down into the following five

phases in order to meet the above mentioned objectives. The process is currently on phase 2:

Situational Analysis.


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Phase 1

•Inception Report detailing the scope of work and the methodology that will be used in developing the UThukela Investment Promotion and Facilitation Strategy

Phase 2

•2. Detailed Situational Analysis report involves a status quo of investment trends in the district including key competitive and comparative advantages of the District.

Phase 3

•Drafting of the District IPFSs entailing development of the IPFS which outlines the key priority sectors for inward investment and the key strategic interventions required to promote and secure new investment into the District.

Phase 4

•Detailed Implementation Plan and Monitoring & Evaluation Framework, including a detailed Implementation Framework outlining roles & responsibilities of implementing agents including time frames; and a monitoring and evaluation framework to track progress of projects identified.

Phase 5 •Close Out report

1.4 STRATEGIC APPROACH AND METHODOLOGY

The approach undertaken is based on the integration of the various components of development

economics, namely economic market focus, spatial aspects, sustainable planning and strategic

development facilitation. Economic development opportunities are identified, spatial planning

parameters drawn up and implementation guidelines specified in terms of facilitating actions.

The methodology adopted throughout the process of formulating the UThukela District Investment Promotion and Facilitation Strategy is outlined in the figure below. This process involves extensive

In considering the objectives and scope of this strategy, the following three key fundamentals

pillars are key to the conceptualization and formulation of the Investment Strategy:

1. THE COMPARATIVE ADVANTAGES OF THE UTHUKELA DISTRICT with an aim of identifying the

spatial and sectoral areas where investment should be aimed on. This aspect represent the

“demand” for investment;

2. THE INVESTOR TRENDS AND OBJECTIVES IN MAKING INVESTMENT DECISIONS with an aim of

identifying and targeting the right investors to the right investor opportunities. This aspect

represents the “supply” of investment; and

3. THE IDENTIFICATION OF THE INTERVENTIONS THAT ARE NECESSARY TO MAXIMISE BOTH

PRIVATE AND PUBLIC INVESTMENT – this deals with the strategies and actions necessary to

maximise the alignment between (1) the “demand” and (2) the supply as defined above.

uThukela


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consultation throughout the process through visionary workshops, stakeholder consultation and meetings.

1.5 SITUATIONAL ANALYSIS OBJECTIVES

This report focusses on the situation analysis which will inform the strategy development process.

The purpose of this Situational Analysis Report is to review and assess the current situation in

uThukela with regards to Investment Promotion, Attraction and Facilitation. The two main aspects of

this report are:

1. Understanding investment, investment trends and strategic framework in uThukela within

the broader national and provincial context;

Phase 1 - Inception

Phase 2 - Situational Analysis

Desktop research to determine current environment, sectoral trends,

investment patterns, district capacity and

key challenges and opportunities

Stakeholder consultation (interviews, discussions and workshops) to identify trends and gather information relating

to their strategies and plans for investment

Phase 3 – Drafting the IPFS

Development of the DMIPFS including key findings on the Status Quo, development of strategic interventions and key areas for investment sectorally and spatially, the

approach required, role and responsibilities, alignment to the provincial investment

strategy, and enterprise development and investment model

Phase 4 – Implementation and M&E Framework

Development of an Implementation Framework detailing key intervention,

roles and responsibilities, resource requirements, and an action plan for

implementation

Development of a Monitoring and Evaluation Framework which sets investment targets and allows for

tracking and monitoring of the strategy implementation and new investment

Phase 5 – Close-out

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2. Understanding the current investment environment, profile and preferences of uThukela

and related local municipalities with associated challenges and strengths.

1.5.1 OBJECTIVES

The objectives of the situational analysis are as follows;

a. Review and collate existing research recently undertaken within uThukela;

b. Review of investment trends within the district, and in relation to the province;

c. Analyse the key competitive areas and priority sectors for uThukela;

1.5.2 METHODOLOGY

The methodology utilized for the situational analysis includes;

a) Literature Review/Desktop Analysis: Assessment of the current National and Provincial IPF

frameworks, investment incentives, and relevant policy, strategy and interventions that

influence investment promotion and facilitation are taken into consideration. In addition

current district and local strategies that will influence Investment Promotion and Facilitation

are also reviewed.

b) Statistical Analysis: used to determine a sectoral analysis using baseline information and

market intelligence to identify key issues and the districts growth potential, comparative and

competitive advantages, needs, challenges and opportunities.

c) Stakeholder Consultation: Workshop and interview preparations, facilitation and

discussions with stakeholders to identify trends and gather information relating to their

strategies and plans for investment as well as private and public investment in the district

(including sectoral and spatial investment trends) as well as the investment climate. A

variety of stakeholders are interviewed at a National, Provincial and Local Scale as well as a

sectoral scale and an investor scale.

1.6 REPORT OUTLINE

Section 1: provides an introduction to the strategy and key objectives and methodology undertaken;

Section 2: provides an outline of key investment trends at a national, provincial and local level, and a

review of the strategic policy environment surrounding investment promotion, attraction and

facilitation;

Section 3: outlines uThukela as an investment location with an audit of the infrastructure and

resources in uThukela;

Section 4: provides an economic synopsis of the district detailing the public and private sector

investments; then comes

The conclusion.


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2. UNDERSTANDING INVESTMENT AND INVESTMENT FACILITATION

2.1 BUILDING A CASE FOR INVESTMENT PROMOTION IN UTHUKELA

2.1.1 DEFINING INVESTMENT PROMOTION AND FACILITATION

In line with the KZN Provincial Investment Strategy, key definitions and considerations informing

investment promotion, attraction and facilitation that should be understood at the onset include:

Investment: Investment entails all commitment of financial and or capital assets by a party in

order to gain profitable returns in the form of interest, income, or appreciation of the value of

the instrument1 ,

‘Investment promotion, attraction and facilitation can be defined as sourcing, promoting,

communicating with, and attracting potential investors in an attempt to influence them towards

investing in your location, and to facilitate and maintain new and existing investor relations to

influence the establishment of new investment and the retention and expansion of existing

business’,

Role of the public sector: this sector is seen as an investment facilitator to the private sector by

creating an environment conducive to investment through enhancing the political and economic

climate of a region. Examples of public sector involvement include the formulation of

development incentives, infrastructure development, and policy statements as a tool to foster

investment as well as playing an advisory role. Important to mention is the promotion of public-

private partnerships to enhance investment attraction,

Investment promotion Agencies (IPA): Trade and Investment KwaZulu-Natal (TIKZN) is the IPA

for the province and is a public sector body involved with investment promotion and facilitation

in KZN.

Fixed Capital Formulation: is seen as essential for economic growth,

Foreign Direct Investment (FDI): is the long term investment by an international company or

entity into the domestic economy and is seen as essential for economic growth in developing

countries. Advantages of FDI include; technology spillovers, assists human capital formation,

contributes to integration and development of international trade, helps create a more

competitive business environment and enhances enterprise development2 as well as contributes

to the tax base of the host country.

2.1.2 KEY BARRIERS AND DRIVERS TO INVESTMENT

Barriers and drivers of investment are important as they determine the level of investment

attraction into a region. Drivers of investment refer to ‘elements of an economy which encourage

investment by foreign and local investors’ and barriers are factors which drive investment away.

These are summarized below in alignment with the KZN Provincial Investment Strategy which are

taken into account in the uThukela Investment Strategy.

1 Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in Action in KZN Investment Strategy, 2010 2 Foreign Direct Investment for Development: Maximising Benefits, Minimising Costs, OECD. 2002. OECD Publications

Service: France in KZN Provincial Investment Strategy.

http://en.wikipedia.org/wiki/Arthur_O%27_Sullivan


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Table 2.1: Summary of Key Drivers and Barriers to Investment (Source: KZN Investment Strategy,

2010)

Key Drivers of Investment Key Barriers to Investment

Efficient administrative processes Inefficient administrative procedures

Transparent and inclusive policy and decision making

A lack of transparency and clarity in policy and decision making

Availability and quality of resources Perception of high levels of bribery and corruption

Sound and stable macroeconomic environment

Stringent land tenure and ownership arrangements

Productive, skilled, low cost labour force Relatively unproductive and expensive and or low skilled labour force

Growing markets in a specific area Cumbersome industrial relations and labour laws

Perception of access natural resources Expensive and or scarce natural resources

Good quality developed infrastructure Inefficiency in physical infrastructure

Perception of a safe region/ area Theft of communications and power infrastructure

Favourable and stable exchange rate Exchange rate volatility

2.1.3 KEY SUCCESS FACTORS OF INVESTMENT PROMOTION

Key success factors to sustained investment as discussed through the Multilateral Investment

Guarantee Agency (MIGA3) of the World Bank Group, Presentation on ‘Investment Promotion Best

Practices’ and the KZN Investment Strategy, 2010 include the factors discussed below. These success

factors emanate from Investment Promotion Agencies (IPA) whose main responsibility is to

promote investment into a region. Key functions include; image building, investment generation,

external relations – government, strategy and focus, investor services and management of the

promotional process, investor start up assistance, record keeping and research and monitoring and

evaluation. Key success factors include;

Lessons learnt from national and international success and failure in investment promotion,

Quality control to maintain investment promotion, attraction and retention through a

reviewed strategic plan (i.e. adequate planning, implementation and management) to retain

existing investors and attract further investment through informal marketing,

A coordinated institutional effort is necessary,

Marketing and sales strategies to target the priority sectors and identification of external

markets,

A focus on a sectors competitive advantage and identification of opportunities,

Effective management of and access to information to targeted entities through a website

with a database of downloadable documents in relation to the local investment climate and

links to potential sources of assistance,

Provision of free advisory services and assistance to potential investors in the form of:

o Information, advice and research, location scouting, site visits, and property

searches, assistance with recruitment information and processes, identifying joint-

venture partners, facilitating networking among local companies, industry

specialists, and educations and training organisations, supplier identification, profile

3 Part of the World Bank group set up in 1988 to promote investment flows to developing countries


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of municipalities and facilitation of assistance with government departments,

incentives, and regulatory processes.

‘Provincial-level incentives are offered by a variety of agencies which target strategic priority

objectives (sectoral , locational and employment based)’,

Successful IPAs have administrative and bureaucratic independence from government, and

yet are aligned to public economic and investment policy and planning.

IPAs have representation from both private sector and government on their boards.

2.1.4 THE NEED FOR INVESTMENT PROMOTION, ATTRACTION AND FACILITATION IN

SOUTH AFRICA

‘The quality of a country’s investment climate (IC) is determined by the risks and transaction costs of

investing in and operating a business. These costs, in turn, are determined by the legal and

regulatory framework, barriers to entry and exit, and conditions in markets for labor, finance,

information, infrastructure services, and other productive inputs. The World Bank Group (WBG)

supports improvements in investment climates by working with both the public and private

sectors’4. The World Bank sees improvement of investment climates in developing countries as a

means to target sustainable growth and poverty reduction. This view is intrinsically shared by the

South African National government whereby investment is considered a key mechanism to target

long term economic growth and to achieve sustainable development (see policy framework below).

However, there is a concern globally about the difficulty in attracting foreign direct investment into

South Africa5.

The National Investment Promotion and Facilitation Strategy indicates that foreign and domestic

investment levels in South Africa remain below the average for other developing and emerging

markets despite improved macroeconomic conditions. This is reiterated by the Investment Climate

Assessment of South Africa undertaken by the World Bank which states that while South Africas

overall business environment improved it is attracting far less foreign direct investment as much as it

needs to, to tackle the challenges of unemployment and poverty.

Foreign Direct Investment and fixed capital stock are seen as key contributors to economic growth in

South Africa as a form of investment with FDI being an important source of fixed capital stock in

S.A6. As FDI has been identified as an important leverage of investment into the country it is

important to understand the benefits it holds for the host country. The potential economic benefits

of FDI include7:

Job creation both directly and indirectly (suppliers and partners) and poverty reduction,

Export market access: ‘FDI is often more export intensive than domestic investment and can

lead to local company exports through fostering international supply chain opportunities for

local companies supplying foreign investors’,

4 The World Bank Group. 2006. Improving Investment Climates: An Evaluation of World Bank Group Assistance.

5 See African Millennium Cities Initiative, 2006.

6 See United Nations Economic Commission for Africa, Economic Report on Africa 2010: Developing African Agriculture

Through Regional Value Chains and NIPFS in KZN Investment Strategy, 2011 7 As discussed through MCI: City Investment Promotion Handbook, 2009 and the National Investment Promotion and

Facilitation Strategy


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Increased domestic investment through local linkages,

Higher productivity increasing competitiveness in the local economy and cross pollination of

ideas and management methods,

Access to technology, research and development and innovation contributing to the

knowledge economy and increase of local market competiveness,

Foreign Exchange in countries with low savings and higher wage premiums associated with

foreign companies can have spillover effects for the local economy,

Human capital development and skills transfer and marketing of an area on a global scale,

Resource-transfer effects, where capital, technology and management resources are

supplied to the host country, which it otherwise would not have.

2.2 REVIEW OF INVESTMENT POLICY ENVIRONMENT

The sub-section describes the policies and regulations related to investment promotion at the

national, provincial and local level.

2.2.1 NATIONAL STRATEGIC FRAMEWORK

2.2.1.1 NEW GROWTH PATH (NGP)

The new growth path is a broad framework that sets out a vision and identifies key areas where jobs

can be created within the South African National Economy. The new growth path is intended to

address unemployment, inequality and poverty in a strategy that is principally reliant on creating a

significant increase in the number of new jobs in the economy, mainly in the private sector.

The new growth path sets a target of creating five million jobs by 2020. This target is projected to

reduce unemployment from 25% to 15%. Critically, this employment target can only be achieved if

the social partners and government work together to address key structural challenges in the

economy.

The new growth path seeks to place the economy on a production-led trajectory with growth

targeted in ten ‘jobs drivers’. As a first step, government will focus on unlocking the employment

potential in six key sectors and activities. These are:

Infrastructure, through the massive expansion of transport, energy, water, communications

capacity and housing, underpinned by a strong focus on domestic industry to supply the

components for the build-programmes;

The agricultural value chain, with a focus on expanding farm-output and employment and

increasing the agri-processing sector;

The mining value chain, with a particular emphasis on mineral beneficiation as well as on

increasing the rate of minerals extraction;

The green economy, with programmes in green energy, component manufacture and

services;

Manufacturing sectors in IPAP2 and;

Tourism and certain high-level services.


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The New Growth Path indicates that current investment and savings is below the levels required for

sustainable growth which is seen as an imbalance in the economy. The NGP therefore sees the need

for government to ‘encourage stronger investment by the private and public sectors to grow

employment-creating activities rapidly while maintaining and incrementally improving South Africa’s

core strengths in sectors such as capital equipment for construction and mining, metallurgy, heavy

chemicals, pharmaceuticals, software, green technologies and biotechnology’ and sees the need for

investment from emerging centres of economic power such as China, Brazil etc. The New Growth

Path also views foreign Direct Investment as a mechanism to counter appreciation of the rand.

2.2.1.2 NATIONAL DEVELOPMENT PLAN (NDP)

The recently established National Planning Commission (NPC) has developed the NDP vision for 2030

for South Africa which is classified as a long term strategic framework for the country to work

towards collectively. A Diagnostic Report was released in June 2011 and sets outs South Africa’s

achievements and shortcomings since 1994. The central challenges identified are:

Too few people work;

The standard of education for most black learners is of poor quality;

Infrastructure is poorly located, under-maintained and insufficient to foster higher growth;

Spatial patterns exclude the poor from the fruits of development;

The economy is overly and unsustainably resource intensive;

A widespread disease burden is compounded by a failing public health system;

Public services are uneven and often of poor quality;

Corruption is widespread;

South Africa remains a divided society.

In reaction to these fundamental challenges, the NDP 2030 plan spells out the key strategic development areas which require focus over the next 20 years. These are:

Employment and economy;

Economic infrastructure;

Environmental sustainability;

An integrated and inclusive rural economy;

Positioning South Africa in the world;

Transforming human settlements;

Improving education, training and innovation;

Promoting health;

Social protection;

Building safer communities;

Building a capable and developmental state

Fighting corruption;

Transforming society and uniting the country.

Whilst the above strategic areas are broad the 3 priorities that are highlighted include; raising employment through faster economic growth, improving the quality of education, skills


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development and innovation and building the capability of the state to play a developmental, transformative role. These are seen as essential to achieving higher rates of investment and competitiveness, and expanding production and exports.

uThukela aims to work toward the national long term vision of growing the economy and creating

employment as well as skills development and innovation through investment attraction, promotion

and facilitation. The NDP acknowledges the need for increased investment in competitive

infrastructure through improved governance to lessen the risk on international investment. This can

be achieved by rising exports, attracting investment in competitive infrastructure, and lowering the

cost of doing businesses through improving efficiencies in transport and logistics.

2.2.1.3 NATIONAL INDUSTRIAL POLICY FRAMEWORK

In January 2007, Cabinet adopted the National Industrial Policy Framework (NIPF), which sets out

government’s broad approach to industrialisation. The NIPF identifies a challenge in the South

African labour economy. The NIPF is written with the view to create a competitive national

environment for investment, create capability in Trade and Investment South Africa for investment

promotion in line with global best practices and investor after care services (which it identifies as

being effective in encouraging further investment); provide input into the development of incentives

which take cognisance of global best practices; and to develop an effective investment monitoring

and evaluation framework. The objectives of the strategy are:

To facilitate diversification beyond our current reliance on traditional commodities and non

tradeable services, which requires the promotion of increased value-addition, characterised

particularly by movement into non-traditional tradeable goods and services that compete in

export markets and also against imports;

To ensure the long-term intensification of South Africa’s industrialisation process and

movement towards a knowledge economy;

To promote a more labour-absorbing industrialisation path, with the emphasis on tradeable

labour-absorbing goods and services, and economic linkages that create employment;

To promote industrialisation, characterised by the increased participation of historically

disadvantaged people and marginalised regions in the industrial economy; and

To contribute towards industrial development in Africa, with a strong emphasis on building

the continent’s productive capacity.

The NIPF does not explicitly identify targeted sectors. Instead the framework highlights five sector

groupings where much of South Africa’s economic potential lies: natural resource-based, medium

technology (metals fabrication; machinery and equipment; downstream minerals beneficiation;

chemicals and plastics; and paper and pulp), advanced manufacturing, certain labour-intensive and

tradable services sectors.

These areas are further broadened by the recently developed National Industrial Action Plan, to

include forestry and furniture in paper and pulp, and capital equipment and transport equipment

into metals fabrication.

uThukela adheres to the NIPF by contributing to a competitive national environment for investment

through the priority sectors identified by the NIPF. The NIPF provides an overarching framework for


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investment and identifies key economic sectors with potential for growth and investment. It also

guides further policy coherence.

2.2.1.3 NATIONAL INVESTMENT PROMOTION AND FACILITATION STRATEGY, 2008

The vision of the NIPFS is to: ‘To develop an investment promotion and facilitation service and

domestic forum able to attract the optimal amount of investments into South Africa through global

best practices’. The IPFS aligns to the NIPF. The IPFS acts as a strategic alignment enabler between

The DTI and public and private stakeholders involved in investment promotion and facilitation. This

strategy was formulated in response to ‘Foreign and domestic investment levels in South Africa

remain below the average for other developing and emerging markets despite improved

macroeconomic conditions’ even though South Africa has high FDI potential and is listed as one of

the 25 most attractive FDI destinations in the world8. The IPFS covers a range of issues that are

important to fulfilling the dti’s mandate of increasing the value of inward FDI. The document

outlines the current challenges facing SA in attracting substantially greater amounts of inward FDI.

New innovations in the operation of Trade and Investment South Africa (discussed in section 2.3

below) are motivated and described. The diagram below illustrates framework within which to

achieve the below objectives:

Create a competitive environment for investment,

Create an effective investment promotion and aftercare servicing capability within the dti,

housed in TISA with the appropriate level of budget, resources and skills,

Facilitate the effective operation of a national forum of investment promotion activities, by

building the requisite levels of capacity and cooperation between institutions,

Develop global best practices in investment promotion, comprising: investment strategy,

lead generation, facilitation, and investor servicing,

Input into the development of new investment incentives to global best practice standards,

in conjunction with TEO and National Treasury,

Establish a monitoring and evaluation framework that ties the IPFS to TISA’s institutional

performance and individual officials’ performance.

8 Presentation: Kuni, D. 2008. The Investment Promotion and Facilitation Strategy. DTI South Africa.


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Figure 1: Process of the National Investment Promotion and Facilitation Strategy, 2008 (Source: Kuni, D. 2008)

The uThukela DIPFS aligns directly to the mission and vision of the National IPFS. The IPFS provides a

strategic framework for investment promotion and key components necessary for the functioning of

an attractive investment climate. It also outlines a process for investment promotion from focussing

on a regions priority sectors, alignment to policy, adequate marketing, and investor aftercare and

partnership facilitation as well as performance monitoring.

2.2.1.4 INDUSTRIAL POLICY ACTION PLAN 2013/14 – 2015/16 (IPAP2)

In January 2007 Cabinet adopted the National Industrial Policy Framework (NIPF) which sets out

Government’s broad approach to industrialisation. Implementation of industrial policy was set out in

the Industrial Policy Action Plan (IPAP), which was later revised to incorporate a longer-term 10 year

view of industrial development, to form the IPAP 2. The IPAP constitutes a central tool in the NGP

job-creation strategy. It is anticipated that IPAP 2 2011/12- 2012/13 interventions will lead to 43 000

direct jobs and 86 000 indirect jobs, totalling 129 000 jobs.The analysis indicated that seven sets of

policies are critical to achieve a scale-up of industrial policy and a shift towards strengthening the

productive side of the economy in general. These policies are:

Stronger articulation between macro and micro economic policies;

Industrial financing channeled to real economy sectors;

Leveraging public and private procurement to raise domestic production and employment in

a range of sectors, including alignment of B-BBEE and industrial development objectives, and

influence over private procurement;

Developmental trade policies which deploy trade measures in a selected and strategic

manner, including tariffs, enforcement and SQAM (standards, quality assurance and

metrology) measures;


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Competition and regulation policies that lower costs for productive investments and poor

and working class households;

Skills and innovation policies that are aligned to sectoral priorities;

Deploying these policies in general and in relation to more ambitious sector strategies,

building on work already done,

Interventions designed to stimulate sub-regional growth, including key sectors and value

chains by way of the Special Economic Zones (SEZ) policy and programmes;

Interventions that give expression to Government’s commitment to regional economic

development and integration in Africa; and

The deployment of these policies in general and in relation to more ambitious sector

strategies, building on the significant platforms.

2.2.1.5 POLICY ON THE DEVELOPMENT OF SPECIAL ECONOMIC ZONES IN SOUTH AFRICA,

2012

This policy aligns to IPAP and the New Growth Path and was formulated in response to the

challenges faced by the Industrial Development Zones with the aim of addressing these deficiencies

through an improved strategic framework drawing on lessons learnt from the attempted

implementation of the IDZs. The objective of the policy is to support and accelerate industrial

development in the targeted regions by the provision of special measures needed to develop

targeted industrial capabilities and attract targeted foreign and domestic direct investment. The SEZ

programme is a tool that is used by many economies to promote trade, economic growth and

industrialisation. The country aims to create and sustain economic opportunities in all its regions,

especially the under-developed regions, develop much needed regional development platforms,

create jobs for a growing population, and improve the general living standards of its citizens.

This main aim is supported by the following objectives:

Support the development of targeted industrial capabilities and foreign and direct investments

in support of the IPAP, regional development strategies, and the NGP.

Develop world-class industrial infrastructure in line with the requirements of the targeted

industries and investments.

Promote beneficiation and value addition of the country's mineral and agricultural resources.

(iv)Contribute to the creation of jobs and increase exports of beneficiated commodities in the

targeted regions.

The policy indicates that strong coordination at all levels of government, adequate financial and

technical resources and clearly targeted industrial capabilities and investments are needed for the

success of the implementation of SEZs in South Africa.

2.2.2 PROVINCIAL STRATEGIC FRAMEWORK

2.2.2.1 PROVINCIAL GROWTH AND DEVELOPMENT STRATEGY AND PLAN (PGDS AND PGDP)


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The recently completed PGDS provides a high-level view of key issues, mechanisms and

interventions necessary to achieve continued balance growth in the province for the 30 year time

horizon. This PGDS provides KwaZulu-Natal with a reasoned strategic framework for accelerated and

shared economic growth through catalytic and developmental interventions, within a coherent

equitable spatial development architecture, putting people first, particularly the poor and vulnerable,

and building sustainable communities, livelihoods and living environments.

The strategic focus of the PGDS is:

“…to build on the smart province concept, through improving all growth sectors enhancing their

employment generating potential, transformation of the economic sector in respect of representivity

of our population, appropriate provision of economic and social infrastructure and building of

sustainable communities in our Province, and contributing to this on a nation and Continental level.”

The Provincial Growth and Development Plan (PGDP), the implementation framework for the

Provincial Growth and Development Strategy (PGDS), provides a number of interventions.

Attention is given to the provision of infrastructure and services, restoring the natural resources,

public sector leadership, delivery and accountability, ensuring that these changes are responded to

with resilience, innovation and adaptability. This will lay the foundations for attracting and instilling

confidence from potential investors and developing social compacts that seek to address the inter-

connectedness of the Provincial challenges in a holistic, sustainable manner, whilst nurturing a

populous that is productive, healthy and socially cohesive.

The PGDS aligns itself to the Millennium Development Goals (MDGs), the New Growth Path (NGP),

the National Development Plan (NDP), as well as various other national policies and strategies. It

identifies seven strategic goals, all of which have a direct bearing on economic development. They

are:

Goal 1: Job Creation

Goal 2: Human Resource Development

Goal 3: Human & Community Development

Goal 4: Strategic Infrastructure

Goal 5: Environmental Sustainability

Goal 6: Governance and Policy

Goal 7: Spatial Equity

Strategic Goals 1, Job Creation, deals directly with economic investments, and is of particular

importance to the purposes of the current analysis.

2.2.2.2 PROVINCIAL SPATIAL ECONOMIC DEVELOPMENT STRATEGY (PSEDS)

The PSEDS provides a strategic framework, sectoral strategies and programmes aimed at a rapid

improvement in the quality of life for the poorest people of the Province. It sets out to address the

developmental challenges posed by these socio-economic contexts through a ten year development

plan. The PSEDS specific programmatic interventions are built around the particular nature of

inequality and poverty in the KZN. There are several spatial considerations that will have bearing on

this project, but most importantly, the fact that eThekwini and uThukela are still identified as

primary nodes that fall on a priority transport corridor (N2) between the Richard’s Bay and Durban


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Ports. The PSEDS is currently in the process of being reviewed by the Department of Economic

Development and Tourism (DEDT). It must however be noted that as part of the revised PSEDS, the

province seeks to identify the key driving commercial activity within the province and map this

spatially. This will allow for a view of what economic concentration exists in uThukela within the

provincial context. The successful implementation of the PSEDS is dependent on the implementation

at local level.

2.2.2.3 KZN INDUSTRIAL DEVELOPMENT STRATEGY (IDS)

The IDS aims at developing KZN’s manufacturing industry and related services. In doing so it sets out

the short to medium term programmes that have been identified by the Department of Economic

Development to address these issues. Through the Strategy, it was identified that the Province

needs to:

Pursue policies designed to ensure macroeconomic stability, growth, low inflation and high

employment to the extent possible;

Increase emphasis on investment;

Increase effective delivery of - skills, infrastructure, research and development, and

innovation - especially vocational and scientific/technical education;

Continue with its active industrial policy to protect and enhance modern manufacturing

capacity but should also focus heavily now on re-organisation of agencies and resources in

partnership with business and labour, for significant improvements in the speed and quality

of implementation;

Ensure funds are made available and administered appropriately, to fund the training and

retraining of workers who have been made redundant or whose skills need updating.

The strategy seeks to increase the level of development diversity in the provincial economy. The

Strategy identifies two critical issues which must form the overall focus of the Province in achieving

industrial development, namely, productive growth and job creation. In order to achieve this, the

human capital potential of the provincial economy will need to be further enhanced. The clusters

identified within the KZN IDS are: Cluster 1 – Infrastructure Development; Cluster 2 – Skills

Development; Cluster 3 – Sustainable Job Creation and Entrepreneurship; and Cluster 4 – Productive

Industrial Growth. These clusters are intrinsically linked to investment.

2.2.2.4 KZN INVESTMENT STRATEGY

The KZN Investment Strategy was developed as to tool for all stakeholders to assist in attracting and

facilitating foreign and domestic investment in KwaZulu-Natal. The objective of the Strategy is to

enable all stakeholders in the province to work together in promoting, attracting and facilitating:

Foreign and domestic investment;

Both of a public and private sector nature;

Into productive industries (income and asset creation);

Driven by the comparative advantages of the province;

In order to stimulate job creation and income generation.


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The key areas of focus of the strategy are:

Improving structures and systems of investment promotion and facilitation, and working

together;

Attracting investment to meet job targets;

Channeling resources to where they have the greatest impact (i.e.: foreign countries,

geographic areas, economic sectors);

Ensuring that competitive advantages are utilised to the fullest and building on these;

Alignment and integration with national, provincial and local policies, strategies and

programmes (incl. Richards Bay IDZ, DTP);

Maximisation of job creation and retention through business retention & expansion;

Gaining optimal benefit from incentives such as DTI sector-based Incentives and service &

utility incentives;

Public sector investment into infrastructure to lead the private sector (incl. rural and small

towns).

2.2.2.5 KZN EXPORT STRATEGY

A Provincial Export Strategy was undertaken to identify the major challenges facing the province in

terms export promotion and present implementable solutions to these challenges. The following are

requirements identified by exporters as key to ensuring growth within the export market:

Good communications;

Cost-effective and reliable transport;

Certainty that goods will be efficiently delivered across international borders to customers;

Competitive pricing of the goods at destination through assistance with constraints;

Efficient payments to exporters and access to finance for exports;

Minimising of “red tape” associated with exports;

Skilling for exports and training in reducing input costs;

Smart export development, including spatial export development.

The strategy incorporates these elements into targeted programmes to provide exporters with

assistance in the challenges they face. However in order to successfully overcome these challenges

and achieve the goals of the strategy, buy-in from all export stakeholders is required, along with a

recognition of the vital role external bodies such as national government and export councils play in

creating an enabling environment for trade.

In response to this, the Strategy presents five key programmes:

Programme No. 1: Enhancing the Export Climate and Competiveness

Programme No. 2: Improving Market Penetration

Programme No. 3: Exporter Development

Programme No. 4: Export Promotion

Programme No. 5: Export Strategy Performance Measurement, Management & Review.

2.2.3 LOCAL STRATEGIC FRAMEWORK

2.2.3.1 UTHUKELA INTEGRATED DEVELOPMENT PLAN (IDP) (2012/13 – 2016/17)


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The Municipality’s IDP sets out a development plan for the area for the next five years (2012/13 –

2016/17) and it does so by taking into account all aspects namely economic, physical infrastructure,

social, economic and environmental, to ensure truly integrated development.

The IDP is informed by extensive community participation to maintain the local authority’s aim of

providing services to its people according to their needs. This includes creating an environment

conducive to the development and growth of economic investments. The IDP allocates resources

both financial and human to projects that need to be implemented in the municipality which is

updated on an annual basis. The uThukela IDP vision is:

‘A stable, sustainable and prosperous district with committed servants who serve with excellence in governance, service delivery and economic development.’

In order to achieve this vision uThukela District developed a mission statement with a number of

core values. The IDP mission statement reads:

We promote a people-centred environment with emphasis on consultation, integrity, accountability, economy, effectiveness and efficiency.

The district core values read: “SHOPS” meaning solidarity, honesty, ownership, professionalism, and

self-reliance

The IDP prioritises the ‘growth and development of the economy through private sector initiatives

and investment to maximize employment creation and income generation’. It also states that a

strong and rapidly growing economy will assist with addressing service backlogs.

SHOPS

Solidarity

Honesty

Ownership Professional

ism

Self-reliance


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The IDP also prioritises the need for an enabling environment to be created in which the private

sector could be empowered to compete effectively in international markets. Other approaches to

development include protection and management of the natural environment in accordance with

international standards and practices to ensure that long term sustainability of the communities,

tourism and manufacturing practices. In addition, community capacity building and health care

provision is prioritized for socio-economic development. The strategic priorities identified in the

District IDP include:

Water and sanitation provision, safety, addressing backlogs, operation & maintenance

Ensuring enhanced service delivery with effective institutional arrangements (enhancing

administrative,

institutional and political capacity)

Effective Management of Resources and Infrastructure

Coordination of Local Economic Development and Tourism

Participation in Health Structures (HIV, Aids, TB, STIs, etc.)

The uThukela Investment Strategy aims to work within the framework of the IDP to assist in

achieving the vision set out for the District Municipality.

2.2.3.2 UTHUKELA SPATIAL DEVELOPMENT FRAMEWORK (2008)

In 2008 the District developed a Spatial Development Framework with two major aims:

To create sustainable human settlements and quality urban environments in line with the

NSDP, and

To achieve economic growth and development through maximizing the potential

comparatives advantages of the District

From the preceding aims, key objectives intended by the SDF in the district included the following:

To enhance linkages between the rural areas and urban settlements

To encourage urban integration at local settlements to redress the imbalances of the past

To ensure the protection of environmental sensitive areas

To enhance potential movements corridors

To enhance the comparative economic advantages of uThukela

To enhance the potential tourism linkages transnationally and internationally

To enhance agricultural activities that will benefit local economic development

To upgrade infrastructure that will enhance the economic competitiveness of the District

In order to achieve the above aims and objectives the following strategies needs to be adopted:

1. The town of Ladysmith is to be developed as the Primary Admin Centre of the District.

2. The industrial area at Ladysmith is to be developed as the Primary Industrial Hub of the

District.

3. The town of Estcourt is to be developed as the Primary Agriprocessing Hub of the District.


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4. The towns of Ekuvukeni, Estcourt, Ntabamhlope and Bergville are to be developed as

Secondary Admin Centres to locate an admin centre within each local municipality.

5. Tertiary Nodes are to be located at Driefontein, Mhlumayo, Weenen, Colenso, Loskop,

Kwadakuza and Winterton and will be places where a decentralization of administrative

functions may take place. These nodes will also be targeted for economic investment.

6. Tourism nodes will be focussed upon along the Drakensberg and in Ladysmith to make full

use of the Drakensberg World Heritage Site and the Battlefields routes.

7. The N11 and N3 are identified as Primary Corridors and play an important part in making the

District economically competitive.

8. Secondary Corridors were identified to link the Secondary Nodes and in some cases the

Tertiary Nodes where such nodes are located on a route to an adjacent district.

9. A Primary Tourism Corridor was identified and runs from Estcourt along the Drakensberg

over the Olivier’s Hoek Pass, to give effect to the Provincial tourism/ trekking initiative.

10. Secondary Tourism Corridors have been identified from the Primary Tourism Corridor to the

Tourism Nodes located along the Drakensberg World Heritage Site to benefit the local

communities on these routes.

11. The portion of N11 stretching between Ladysmith and the N3 has been identified as a

priority upgrade, as well as a stretch of dirt road between Loskop and Bergville in order to

enhance the access to Ladysmith and the Primary Tourism Corridor respectively.

12. The N3 Corridor Development Nodes have been located along the N3 in order to derive

some benefits from this major transport route.

13. Water and Sanitation Infrastructure Investment are identified in the uThukela District

Municipality Water Services Development Plan (2007).

It should be noted that SDF has highlighted the primary and secondary investment nodes

and corridors based on the local opportunities of the area.

2.2.3.3 UTHUKELA SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN FOR THE

2012/2013 BUDGET

uThukela district developed a Service Delivery And Budget Implementation Plan (SDBIP) for 2012-

2013 to assist in accelerating the delivery of services in all its Municipal areas. The SDBIP process

entails the following:

Drafting of a municipal Integrated Development Plan (IDP)

Submission of IDP projects to inform the Municipal Budget

Drafting of a Municipal Budget

Developing of Performance Targets and Key Performance Indicators

Drafting of a Draft SDBIP by the Municipal Manager and Management Team

Submission of the SDBIP to the Mayor

Approval of the SDBIP by the Mayor (28 days after approval of the annual budget)

Approval of the SDBIP by the Mayor

Monitoring the SDBIP and Financial Oversight

Review of the SDBIP on a Quarterly Basis


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Bi-annual reporting to Council

Reporting on Service Delivery in terms of the SDBI

It should be noted that the DBIP is crucial to the investment promotion in the area as it accelerate

the delivery of services an infrastructures that in many areas act as barriers to investment

promotion.

2.2.3.4 FORMULATION OF ORGANIC PRODUCTS SECTOR PLAN FOR UTHUKELA DISTRICT

MUNICIPALITY

The district was identified as having the highest agriculture potential suitable for the production of a

variety of vegetables (cabbage, tomato, carrot, and potato) as well as many legumes. Further, the

area is also suitable for animal production, especially beef production. Therefore, the overall

objective of the project was to have a plan that stimulate and boost the production of organic food

and products in the Uthukela District Municipality.

The plan suggested the following strategies;

Awareness creation: Extension Officers and the small scale farmers in the District need to be

made aware of what organic agriculture production is. Both the advantages and challenges

of converting to and practicing organic production need to be highlighted.

Stimulating the correct production practices: m ost of the farmers are practicing low

external input sustainable agriculture (LEISA) due to poverty. It is likely to be easy to use this

as a stepping stone to organic agriculture production.

Grouping successful farmers together to obtain critical mass: there is a need to monitor

and evaluate the performance of farmers who will be participating in the project

Putting in place key support infrastructure: It is crucial to have key infrastructure like

markets, storage facilities, animal handling facilities, training centres and coordination

centres in place for efficient operation.

2.2.3.5 UTHUKELA DISTRICT MUNICIPALITY –PUBLIC TRANSPORT PLAN 2005-2010

The uThukela District Municipality Public Transport Plan (PTP) developed the following vision

“To provide integrated, affordable and accessible public transport services to the community”

To enable uThukela to attain its vision several goals were developed taking into account the packaging of subsidised services and the associated policies, the levels of service to be provided, the integration with land use, addressing travel demand management and the modal integration of services where applicable. These goals have been divided into four broad categories namely:

Public transport infrastructure: Improve and invest in public transport infrastructure based on the identified needs and develop a policy towards the funding and provision of public transport service;

Planning and development: Ensure integration whilst implementing the Public Transport Plan;


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Road infrastructure: Improve the accessibility to the public transport service by investing in road infrastructure especially in rural and deep rural areas; and

Public transport demand and safety: Ensure safe, secure, reliable, affordable and sustainable public transport service based on public transport demand.

It should be noted that transport infrastructures play pivotal role in stimulating or in blocking investments to flow in an area.

2.2.3.6 LOCAL MUNICIPALITIES LOCAL ECONOMIC DEVELOPMENT STRATEGIES

The five Local Municipalities (Indaka, Emnambithi/Ladysmith, Umtshezi, Okhahlamba, and

Imbabazane) making up the uThukela District has each a LED Strategy that sets out a vision for the Municipality. The main components of these Strategies are to identify and explore economic development opportunities, take advantage of local economic comparativeness and competitiveness, overcome local economic development challenges. It implies that such imperatives must be considered within the context of developmental local government. In order to achieve the vision developed in each LED Strategy, Municipalites need to to consider the following:

Improve internal capacity and optimise stakeholder participation,

Promote sustainable community based entrepreneurship and investment,

Provide strategic infrastructure and services,

Identify, support and promote private sector high impact projects,

Provide support for informal economic activities.

2.2.3.7 LOCAL MUNICIPALITIES INTEGRATED DEVELOPMENT PLANS

The Municipals’ IDPs set out a development plan for the area for the next five years and

they do so by taking into account all aspects namely economic, physical infrastructure,

social, economic and environmental, to ensure truly integrated developments.

Municipal IDPs are informed by extensive community participation to maintain the local

authorities’ aim of providing services to their people according to their needs. This includes

creating an environment conducive to the development and growth of economic

investments. The IDPs allocate resources both financial and human to projects that need to

be implemented in the municipalities. They do this over a five-year forecast and is updated

on an annual basis.

SYNOPSIS

The National, provincial and local policies presented above are all relevant to the current study as

they all promote job creation, economic development and growth. Investment Strategy for UThukela

needs to be developed with these above principles in mind, i.e: ensuring that the municipality

creates a conducive environment to ensure effective promotion and attraction of investment, as

well as efficient facilitation of investment. To this end, the strategy must:

Make suggestions towards improving the business environment in uThukela;


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Seek to improve coordination between key stakeholders who are required to work together

to promote and facilitate investment;

Identify key sectors and focus areas for inward investment (based on comparative

advantages);

Promote the sharing and development of research and information.

2.3 INVESTMENT ENVIRONMENT: KEY ROLE PLAYERS

This section provides an overview of the key stakeholders in investment promotion at the national,

provincial and district levels with key roles respectively.

2.3.1 NATIONAL ROLE-PLAYERS

2.3.1.1 THE DTI AND TISA

Trade and Investment South Africa (TISA) is a division of the national Department of Trade and

Industry that is responsible for trade and investment promotion in South Africa. Its mandate is to

develop the South African economy by focusing on investment promotion and facilitation; export

development and promotion as well as managing its network of foreign economic offices. The

Investment Promotion unit of TISA is responsible for attracting foreign direct investment as well as

developing and promoting local direct investment by undertaking the following tasks:

Identifying investment opportunities in South Africa,

Packaging investment opportunities,

Identifying potential investors,

Promoting investment opportunities,

Facilitating investment into and in South Africa,

Providing a dedicated aftercare service,

Providing general information on investing in South Africa and the domestic business

environment,

Arranging inward and outward investment missions,

Facilitating funding and government support.

In terms of investment support, the DTI offers a number of incentives and programmes in order to

provide additional motivation to potential investors to choose South Africa as an investment

location.

These include the Clothing and Textile Competitiveness Improvement Programme (CTCIP),

Production Incentive (PI),

Automotive Investment Scheme (AIS),

Enterprise Investment Programme (EIP),

Black Business Supplier Development Programme (BBSDP),

Critical Infrastructure Programme (CIP),

Business Process Outsourcing and Offshoring (BPO and O),


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Sector Specific Assistance Scheme (SSAS),

The Co-operative Incentive Scheme (CIS), and

Film Production Incentives (FPI).

Although TISA is a division of the DTI mandated to undertake trade and investment promotion on a

national level, there are various other department and institutions that play a role in the complete

investment promotion process. These are briefly discussed below.

2.3.1.2 OTHER NATIONAL DEPARTMENTS AND INSTITUTIONS

Although most other national departments are not mandated to undertake investment promotion

and facilitation, there are a number of objectives that the various departments need to fulfil in order

to assist in creating an enabling investment environment. This includes

Making provision for infrastructure that is required to support domestic and foreign

investment,

Creating policy, legislation, and regulatory frameworks, as well as

Providing education and skills development and training to ensure that the work force has

sufficient capacity to meet the requirements of investors.

Investors often make investment decisions based on the investment or business environment of a

location, and therefore the role of the other national departments must not be overlooked.

With regards to Tourism, the national tourism agency “South Africa Tourism” undertakes marketing

and promotion of South Africa as a tourist destination, and therefore has an important role to play

with regards to the Tourism Sector.

Additionally, the Department of Foreign Affairs and High Commissioners in the various South African

embassies located abroad also play a role in investment promotion and facilitation. This relates to

ensuring strong public relations, image building in foreign nations, and facilitation of certain

regulatory processes in the specific foreign nation.

2.3.1.3 FINANCIAL INSTITUTIONS

Financial institutions such as the Industrial Development Corporation (IDC), Kula Finance, and

Development Bank of South Africa (DBSA) also have a role to play in creating and enabling

investment environment. These institutions, although also not active in investment promotion or

facilitation, offer funding and other financial services to potential investors which enhances the

investment climate of South Africa, and provides alternative financing options to investors other

than commercial banks.

2.3.1.4 BUSINESS CHAMBERS

The overarching business chamber in South Africa is the South African Chamber of Commerce and

Industry (SACCI). The objective of SACCI is to actively protect and promote the interests of business.


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There are also a range of specialised chambers and forums such as the Minara Chamber (Muslim

Businesses), the Black Management Forum, the Chambers of Commerce and Industry South Africa

(Chamsa), The South African Chamber of Business (Sacob), The National African Federated Chamber

of Commerce (Nafcoc), Afrikaanse Handelsinstituut, and The Foundation for African Business and

Consumer Services (Fabcos). All these chambers have a role to play in the South African investment

promotion and facilitation arena given that they are the voice of business in the country and assist in

creating an enabling environment for businesses.

2.3.2 PROVINCIAL ROLE-PLAYERS

2.3.2.1 KZN DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM (KZN DEDT)

The Department of Economic Development has the strategic mandate of fast-tracking economic

growth essential for the creation of jobs and the reduction of poverty in the province. The

Department has numerous units or directorates that relate to specific programmes and sub-

programmes of the DEDT. The directorate responsible for overseeing trade and investment is the

Trade and Industry Development Directorate. Within this directorate is the Trade & Investment

Promotion sub-directorate, which deals with issues surrounding the facilitation of investment and

trade. Their key role is to develop policy and assist by creating an enabling environment with regards

to export and investment promotion. It should be noted that, the implementation of this policy is

undertaken by Trade and Investment KZN (TIKZN); which was established as the implementing

agency of the DEDT. TIKZN is responsible for trade and investment promotion and facilitation in KZN,

their role is discussed in greater detail below.

2.3.2.2 TRADE AND INVESTMENT KWAZULU-NATAL (TIKZN)

Trade & Investment KwaZulu-Natal (TIKZN) is KwaZulu-Natal’s provincial trade and investment

promotion agency, developed and mandated to promote the province as an investment destination,

and promote trade by assisting KZN based companies to identify markets and export their

products9. TIKZN offers the following services to potential investors:

Facilitation of joint ventures and business linkages between small and big business;

The provision of relevant, reliable information to investors and traders;

Assistance with applications for investment incentives and export marketing incentives;

Assistance to foreign investors with applications for business permits;

Negotiation of local government incentives on behalf of investors;

Provision of project support and aftercare services;

Assistance to merging international traders and with international trade enquiries;

Assisting investors to locate suitable premises and to secure project and operational

financing;

Provides assistance with access to industrial development zones (IDZ) and spatial

development initiatives.

9 www.tikzn.co.za


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TIKZN primarily focuses on identifying and facilitating investments of R50 million and above. This

criterion has evolved over time as other agencies, like the KZN Growth Fund and iThala Bank

promote investment and offer lendings at thresholds below R50m for large-scale projects. Thus the

specific focus allows for the best use of TIKZN’s scarce resources to focus on investment in-flows.

2.3.2.3 FINANCIAL INSTITUTIONS

In KwaZulu-Natal there are two main financial institutions affiliated with the provincial government,

namely the KZN Growth Fund and iThala Development Finance Corporation.

The KZN Growth Fund

The KZN Growth Fund is a long-term debt fund structured as a unique Public-Private Partnership

between the KZN provincial government, the Development Bank of Southern Africa (DBSA), Standard

Bank Limited and the Infrastructure Finance Corporation (INCA). The Fund provides project funding

for large economic projects, i.e. over R30 million in value, which can stimulate faster growth and job

creation, have broad economic impacts and yield a direct long-term financial return for government.

The Fund also provides capital for approved public-private partnership infrastructure projects that

stimulate the growth of selected sectors, as defined in the KZN PGDS & PSEDS, and to take

advantage of the competitive advantages of the province. This entails providing capital for

investment in tourism, bulk water supply for economic development, transport and logistics,

industry, viz. automotive, clothing and textile, agri-industry, bio-diesel, and other investments that

would lead to the diversification of the provincial economy.

Ithala Development Finance Corporation

The iThala Development Finance Corporation is a development bank that aims to stimulate

economic development and empowerment in KwaZulu-Natal. Its main activities are listed below:

To provide development finance to private sector enterprises in order to promote,

encourage and facilitate investment in KZN;

To provide property development assistance; and

To assist with planning, implementation and monitoring of development projects and

programmes in KZN.

Both of these institutions have an important role to play in the regional investment picture in that

they provide funding for targeted infrastructure development as well as development finance to

private sector in order to stimulate and facilitate investment in KZN.

2.3.3 LOCAL ROLE-PLAYERS

At the local level there are also a number of important role-players, although their role and mandate

in investment promotion and facilitation in negligible in many instances. The role-players include the

district and local municipalities in KZN, investment promotion and economic development agencies,

as well as business chambers.


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2.3.3.1 DISTRICT AND LOCAL MUNICIPALITIES

There are 11 district municipalities and 50 local municipalities within the KZN provincial boundary.

Both district and local municipalities typically have a department or unit that deals directly with

Local Economic Development issues, which includes stimulating development and growth via

increased inward investment (generally domestic). Most district and local municipalities therefore

undertake some form of investment promotion and facilitation from within the Municipality.

uThukela is the District Municipality that this strategy will focus on in the wider context and

encompasses five local municipalities, namely, Indaka, Emnambithi/Ladysmith, Umtshezi,

Okhahlamba, Imbabazane.

2.3.3.2 BUSINESS CHAMBERS

There are a number of business chambers within KZN with the Ladysmith Chamber of Commerce

and Industry being of importance in uThukela District.

The most common function of business chambers is to provide information and assistance to their

members, who are local businesses. They also provide a link between local business and the local

government, effectively playing a facilitation role with local business. The mere presence of a

business chamber adds to the business environment of an area and it is for these reasons that

business chambers must be considered when formulating strategy for investment promotion in the

province.

SUMMARY

The table below provides a summary of the roles and responsibilities of key role players in the South

African investment promotion and facilitation arena on a national, provincial, and local level. It

should be noted that all the agencies/departments involved are coordinated, and maintain and

constantly improve upon their existing relationships, as each has a strategic role to play in assisting

to promote, attract and facilitate investment in KZN.

Further, it is critical that there is coordination and a good working relationship between the active

investment promotion and facilitation role players and other role players such as other national,

provincial and local departments, financial institutions and business chambers. This will ensure that

the priorities of all spheres of government, in the various sectors, are aligned with promotion

efforts, and supported by developmental and financial institutions and organisations.

Table 2.2 Investment Promotion and Facilitation Key Stakeholders

Levels Stakeholders Current Roles

National DTI

Policy, planning and implementation of economic development initiatives

TISA Trade promotion and facilitation, Investment promotion and facilitation


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Levels Stakeholders Current Roles

Other departments (Planning, Public Works, etc)

Creating a conducive environment (Policy, regulation, legislation, infrastructure)

IDC, Kula Finance, DBSA Financial/developmental assistance & support

SACCI and other specialised chambers

Business networking, support, and assistance (chambers)

Provincial

DEDT Policy, planning and implementation of economic development initiatives

TIKZN Trade promotion and facilitation, Investment promotion and facilitation

Other Departments (Agriculture, Tourism, etc)

Creating a conducive environment (Policy, regulation, legislation, infrastructure)

KZN Growth Fund, iThala Financial/developmental assistance & support

Local

Local LED Departments & EDA's

Policy, planning and implementation of economic development initiatives

Local IPA's & EDA's Trade promotion and facilitation, Investment promotion and facilitation

Other Departments Creating a conducive environment (Policy, regulation, legislation, infrastructure)

Ladysmith Chamber of Commerce and Industry

Business networking, support, and assistance (chambers)


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3 UTHUKELA DISTRICT OVERVIEW

3.1 BACKGROUND

3.1.1 DEMOGRAPHICS

The Census 2011 population estimate for the uThukela is 668 848 people living in 139 639

households. It is noticeable that the population of uThukela is decreasing from 714 909 (community

survey, 2007) to 668 848 as per Census of 2011. They are number of factors that contribute to the

decrease of population in uThukela district and amongst other things are the impacts of HIV/AIDS-

related deaths and migration.

The population of uThukela district municipality is unevenly distributed. The largest population is in

Emnambithi/Ladysmith local municipality and the small population is in uMtshezi local municipality.

The table below shows the number of wards in uThukela and how the population is distributed from

the 2001 to 2011 Census

Table 3.1 uThukela Populations

Municipality Wards 2011 census

%

Emnambithi 27 237 437 33% of district

OKhahlamba 14 132 068 21% of district

Imbabazane 13 113 073 20% of district

Indaka 10 103 116 14% of district

uMtshezi 9 83 153 12% of district

Total population of uThukela 73 668 848 7.0%of province

Source: Statistics SA: Census 2011

3.1.2 POPULATION BREAKDOWN PER GROUP

The majority of the people that lives in uThukela district municipality are Africans and Coloureds are

minority. The following table shows the population breakdown of the uThukela district municipality.

This breakdown is showing the Africans, Coloureds, Indians and Whites.

Table 3.2 uThukela Race Groups

Municipality 2011 census

%

African 636 394 95.15

Coloured 3 923 0.59

Indian 16 023 2.40

White 11,437 1.71

668 848 100

Source: Statistics SA: Census 2011


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3.1.3 AGE AND GENDER

According to the Census 2011, the number of people between 15-64 age is increasing to 391,369.

Females are more than male and are occupying 55% in this category whereas male are on 45%. With

regards to 0-14, males are leading with 51% while females are sitting in 49%. The last category which

is 65-120, females are more with 69% and males are in 31%. The breakdown below shows age and

gender of uThukela district municipality.

Table 3.3 uThukela Age Groups

AGE MALES % FEMALES % TOTAL

0-14 124,497 51% 121,712 49% 246,209

15-64 177,056 45% 214,314 55% 391,369

65-120 9,631 31% 21,638 69% 31,269

Source: Statistics South Africa 2011

3.2 SPATIAL OVERVIEW AND ANALYSIS

uThukela district municipality (DC23) is one of ten district municipalities in the Province of KwaZulu-

Natal. uThukela district municipality derives its name from one of the major rivers in the Province of

KwaZulu-Natal, the uThukela River that rises from the Drakensberg Mountains and supplies water to

a large portion of KZN and as well as Gauteng. uThukela district municipality has three district

municipalities bordering onto it within the Province of KwaZulu -Natal, namely Amajuba, uMzinyathi

and UMgungundlovu. uThukela district municipality consists of five local municipalities namely,

1. Indaka (KZ233)

2. Emnambithi/Ladysmith(KZ232)

3. Umtshezi (KZ234)

4. okhahlamba(KZ235)

5. Imbabazane (KZ236)

Only four of the five LMs have urban areas i.e. former Transitional Local Councils (TLC) and R293

towns, namely:

Emnambithi LM: Ladysmith/Steadville, Ezakheni and Colenso/Nkanyezi.

Indaka LM: Ekuvukeni.

uMtshezi LM: Estcourt, Wembezi and Weenen.

Okhahlamba LM: Bergville, Cathkin Park (Bergview) and Winterton/Khethani.

However, according to the Municipal Demarcation Board (MDB) major towns in the district also

include:

Emnambithi LM: Driefontein, Peacetown, Roosboom and Van Reenen.

Indaka LM: Vaalkop, eTholeni, Limehill, Uitval and Kliprivier.

uMtshezi LM: Cornfields and Frere.

Okhahlamba LM: Zwelisha, Bushingatha, and Mkukwini.


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The size of uThukela district municipality is approximately 11500km². Emnambithi is occupying

2,965.92km², Indaka is on 991.71km², Umtshezi 2130.85km², Okhahlamba which is the largest is on

3540.63km², Imbabazane is on 827.74km². the district is located in the western boundary of

Kwazulu-Natal. uThukela district municipality is 75 % rural and the newly demarcated local

municipalities, Indaka and Imbabazane, having no formal towns and mainly comprising of traditional

areas.

The main tourism hub is the Cathkin Park that falls within the Cathkin Park node and another node

located near the Royal Natal National Park, called Babangibone Development Node. The Ladysmith

town is a significant historical tourism destination and offers a number museums and historical sites

while Bergville and Winterton towns are located within the vicinity of the Drakensberg and derive

some benefits from the tourism industry.

Map 3.1 uThukela Spatial Map

3.2.1 ENVIRONMENTAL AREAS

There is a range of environmentally sensitive areas within uThukela and include amongst others

natural resources such as the important species sites, sites of intrinsic biodiversity value,

watercourses and steep slopes. The greater central plateau and river valleys, such as the Sundays

and Tugela River are some of the natural resources that should be protected. The most important

environmental value associated with these valleys, are there value as catchments areas. The

prevalence of dongas and soil erosion are also an indication of poor environmental management and

there is therefore a need to develop and adopt an environmental management approach.


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3.2.2 KEY ECONOMIC NODES AND CORRIDORS

Urban areas

Ladysmith and Estcourt are the two major towns and economic hubs within the uThukela District

Municipality. Both Ladysmith and Estcourt are commercial centres for surrounding farming areas

and serves as shopping centres for towns such as Bergville, which lacks a strong commercial

presence. As Ladysmith is the economic and regional hub, the banking sector is service industry is

prevalent. The town is further the industrial hub, with the majority if industries being located around

Ladysmith. The only industrial estate in the District is also located a short distance from Ladysmith.

Traditional Authority Area

Large areas of traditional land are located within uThukela, with about 35% of land classified as

either “tribal” or peri-urban. A spatial analysis revealed that a large portion of degraded land is

located in traditional areas. This is especially true in the Emnambithi, Indaka and Umtshezi

Municipalities. The high propensity for soil erosion in these areas, coupled with land

mismanagement, has contributed to this.

Indaka and Imbabazane has by far the largest share in traditional land, with areas as high as 83%

being traditional land. As such, very little of the municipality’s land has been transferred through the

land reform process. By comparison, the municipalities with the smallest percentage of traditional

land, being Emnambithi and Umtshezi have also experienced the highest level of land reform. In

terms of overall ownership, tribal lands and land reform areas account for about 40% of all land in

uThukela.

Land Reform Projects

As of 2007 a total of 55,523 hectares were transferred to 8,450 beneficiaries. The largest share of

land was transferred in Umtshezi, followed by Emnambithi, accounting for roughly 93% of all land

transferred. A single project in Besters accounted for the large portion of land transfer in

Emnambithi during 2005. Only 1% of land has been transferred in Imbabazane and 6% in Umtshezi.

Road Networks

There are two national routes, the N3 and N11, traversing the District, which forms a critical link

between uThukela and provincial, national and international destinations. The Indaka and

Imbabazane municipal areas are relatively isolated from these routes and can only be accessed via

the provincial road network.

The N3 traverses uThukela and form the connection between Durban and Gauteng. This route

carries a vast amount of goods and passengers, with only a few filling stations along the route

gaining economic benefit. The N11 is an alternative route from Ladysmith to Gauteng and Limpopo

and forms an important route between Ladysmith and Newcastle located in the neighbouring

Amajuba District Municipality.


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In line with Provincial Guidelines, tourism routes have been identified along the Drakensberg, linking

areas such as Cathkin Park, Bergville, Winterton and the Northern Berg. The route has been

expanded recently to include linkages to tourism nodes within the Drakensberg range.


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4 UTHUKELA ECONOMIC SYNOPSIS

4.1 SECTORAL CONTRIBUTION TO THE GVA IN THE DISTRICT

The total value of goods and services produced in uThukela in 2011 was R13.4 billion, contributing

5% to the provincial economy. The district’s GVA contribution grew at an average of 6% per annum

between 2001 and 2011 which is above the overall average for KZN of 4%. This is attributed to the

high average growth in Okhahlamba, Indaka, Umtshezi and Imbabazane municipalities. The table

below shows the GVA contribution of KZN and uThukela in 2011.

Table 4.1 uThukela Sectoral Contribution to GVA

Year 2011

Geography Kwazulu-Natal

UThukela

Total 277,529.8 13,472.3 100

Agriculture, forestry and fishing 12,253.2 946.2 7.0

Mining and quarrying 3,557.5 75.5 0.6

Manufacturing 61,780.7 2,857.0 21.2

Electricity, gas and water 5,717.7 401.6 3.0

Construction 8,537.0 393.6 2.9

Wholesale and retail trade, catering and accommodation 40,532.2 2,342.5 17.4

Transport, storage and communication 38,008.8 1,873.1 13.9

Finance, insurance, real estate and business services 54,497.8 2,068.8 15.4

Community, social and personal services 16,887.8 729.9 5.4

General government 35,757.1 1,784. 13.2

Source: uThukela IDP 2013

Further, the table shows the GVA contribution per sector in constant prices for the district and its

local municipalities for 2011. The most significant sector in 2011 was manufacturing which

contributed 21% to the district’s total GVA .This was followed by wholesale and retail trade, catering

and accommodation at 17%; and then finance, insurance, real estate and business services at 15%.

The least important sector in terms of GVA in 2011 was mining and quarrying at less than 1%.

Table 4.2 GVA contribution of Economic Sectors in uThukela and Local Municipalities

Geography Uthukela DM

Emnambithi-LM

Indaka LM

Umtshezi LM

Okhahlamba LM

Imbabazane LM

Sectors R/M % R/M % R/M % R/M % R/M % R/M % Total Industry 13472.3 100 5624.2 100 579.5 100 2778.6 100 3141.3 100 1317.8 100

Agriculture, forestry and fishing

946.2 7.0 258.7 4.6 7.9 1.4 173.1 6.2 357.0 11.4 149.1 11.3

Mining and quarrying 75.5 0.6 21.1 0.4 22.4 3.9 17.3 0.6 9.5 0.3 5.2 0.4

Manufacturing 2857.0 21.2 1111.4 19.8 91.9 15.9 441.6 15.9 902.2 28.7 309.1 23.5

Electricity, gas and water

401.6 3.0 94.2 1.7 123.8 21.4 46.3 1.7 106.5 3.4 30.8 2.3


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Construction 393.6 2.9 128.5 2.3 21.6 3.7 94.4 3.4 111.9 3.6 35.0 2.7

Wholesale and retail trade, catering and accommodation

2342.5 17.4 985.8 17.5 68.7 11.8 593.4 21.4 392.0 12.5 296.2 22.5

Transport, storage and communication

1873.1 13.9 915.2 16.3 112.0 19.3 348.7 12.6 317.0 10.1 179.7 13.6

Finance, insurance, real estate and business services

2068.8 15.4 993.8 17.7 40.1 6.9 446.6 16.1 458.3 14.6 128.2 9.7

Community, social and personal services

729.9 5.4 271.9 4.8 28.1 4.8 172.0 6.2 180.1 5.7 64.9 4.9

General government 1784.1 13.2 843.6 15.0 63.2 10.9 445.2 16.0 306.8 9.8 119.6 9.1

Source: Easy data 2013

In terms of sector growth, the table below displays the year on year growth rate of each sector in

uThukela from 2001 to 2011. Most sectors have been fairly volatile experiencing both positive and

negative growth, although this is part of any economic cycle. The Finance, insurance, real estate and

business services sector has remained fairly strong over this period growing from 11.4% in 2001 to

15.4% in 2011. Agriculture, construction, wholesale and transport have also shown a slight growth

over the same period as presented in the following table.

Table 4.3 uThukela Economic Sector Growth Rates Over 2001-2011

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 20010 20011

Sectors

Agriculture, forestry and fishing

5.8 6.2 6.6 6.6 6.2 6.1 6.3 7.1 7.4 7.1 7.0

Mining and quarrying

1.2 1.0 1.0 1.0 0.8 0.7 0.7 0.6 0.6 0.6 0.6

Manufacturing 26.3 26.1 24.5 24.5 24.1 23.6 22.9 22.4 21.1 21.8 21.2

Electricity, gas and water

4.6 4.8 4.0 4.0 3.9 3.7 3.5 3.2 3.1 3.2 3.0

Construction 2.5 2.0 2.1 2.2 2.4 2.5 2.7 2.8 3.1 3.0 2.9

Wholesale and retail trade, catering and accommodation

15.3 15.3 15.7 16.0 16.3 16.7 16.8 16.3 16.5 17.0 17.4

Transport, storage and communication

11.0 11.8 12.5 12.7 13.0 13.1 13.4 13.4 13.5 13.2 13.9

Finance, insurance, real estate and business services

11.4 11.7 12.3 12.7 13.5 14.2 14.9 15.6 16.0 15.5 15.4

Community, social and personal services

6.5 6.4 6.6 6.4 6.2 6.1 6.0 5.9 5.8 5.5 5.4

General government 15.3 14.8 14.7 14.0 13.7 13.2 12.8 12.6 12.9 13.0 13.2

Total 100 100 100 100 100 100 100 100 100 100 100

Source: Easydata Quantec 2013

In terms of the manufacturing sector itself, it is important to examine the specific industries and

their growth over the same period for uThukela.

Table 4.4 uThukela Manufacturing Sectors Growth Rates Over 2001-2011


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Sectors 2001 2002 2003 2004 2005 2006 2007 2008 2009 20010 20011

Food, beverages and tobacco

19.4 18.1 18.9 18.9 19.5 20.0 20.4 20.3 21.7 22.9 24.3

Textiles, clothing and leather goods

21.8 22.3 22.9 23.7 21.8 20.6 19.9 19.8 19.5 18.8 16.7

Wood, paper, publishing and printing

9.3 9.3 9.2 9.0 8.8 8.6 8.7 8.4 7.4 7.7 7.6

Petroleum products, chemicals, rubber and plastic

19.3 19.1 18.0 18.0 18.7 18.9 19.2 19.1 20.6 20.7 20.1

Other non-metal mineral products

3.6 3.8 3.9 3.7 3.7 3.8 3.8 3.8 3.2 3.1 3.3

Metals, metal products, machinery and equipment

12.7 13.8 13.0 13.1 13.5 13.8 13.8 13.9 13.5 12.7 13.4

Electrical machinery and apparatus

1.2 1.2 1.1 1.1 1.2 1.2 1.1 1.1 1.1 1.1 1.0

Radio, TV, instruments, watches and clocks

1.2 1.3 1.4 1.3 1.4 1.4 1.3 1.3 1.3 1.3 1.4

Transport equipment 2.5 2.5 2.4 2.4 2.7 2.8 3.0 3.0 3.0 2.8 2.9

Furniture and other manufacturing

9.0 8.6 9.1 8.7 8.7 8.8 8.7 9.1 8.7 8.9 9.2

Total Manufacturing 100 100 100 100 100 100 100 100 100 100 100

Source: Easydata Quantec 2013

4.2 SECTOR CONTRIBUTION TO THE EMPLOYMENT IN THE DISTRICT

The main source of employment within the district in 2011 was wholesale and retail trade, catering

and accommodation at 25%. This was followed by general government at 16% and community,

social and personal services at 15%. Employment in the primary sector comprised around 7% of total

employment in the district in 2011

It should be noted that government and community services that currently dominate the area in

terms of employment with more than 30% of employment are the non-productive sectors

(government services and social services) and have limited multiplier effects in the economy. Mining

and agricultural activities that could contribute significantly to the job creation are undertaken at a

small-scale hence have limited upstream and downstream linkages and therefore contribute

insignificantly to local economic growth. Therefore, more effort needs to be concentrated on the

producers sectors such as agriculture that have more multiplier effects should uthukela wants to

meet its investment objectives.

Figure 4.1 Sectoral Contribution to the Employments of uThukela


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Source: uThukela IDP 2013

4.3 UTHUKELA IN-DEPTH SECTOR ANALYSIS

The purpose of this sub-section is to provide details of the main economic sectors operating

within uThukele District in order to understand their dynamics and needs for investment.

The main sectors operating in uThukela Municipality include:

Agriculture,

Tourism,

Manufacturing,

Transport,

Mining, and

Retail sector or trade and Commerce (Small Medium and Micro enterprises and

Informal Sector).

4.3.1 AGRICULTURE

Agriculture contributed R946 million to the district economy in 2011 and employed 7 959 people.

The sector contributed 7% to total GVA and employment within the municipality in 2011.

Commercial agriculture occupies a large portion of the municipal land area but subsistence farming

is the dominant activity in the municipality. The main crops planted are maize followed by potatoes,

with the main areas for cropping being Estcourt and Bergville. In addition, chickens, pigs, cattles and

sheeps are part of agriculture sector in the district. Beef ranching dominates in Emnambithi local

municipality, whilst chickens are the dominant activity in Umtshezi local municipality. The main area

of sheep and pig farming is also in Umtshezi local municipality.


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Large areas of commercial agricultural land have been set aside for land reform in the uThukela

District. These land claims are in various stages with some having been gazetted and others still

being processed. This has resulted in loss of land to agricultural production unless leased back to

commercial farmers for production purposes.

Agricultural Investment Potential

The soil from uThukela District is fertile for growing many crops and vegetables; this leads the

agricultural sector to have a number of opportunities for investment in planting crops and other

related services including the following:

Vegetables plantation,

Water sport,

Game farming,

Venison production,

Sugar production,

Livestock farming especially pork,

Abattoir,

Hunting,

Aquaculture,

Mushroom production,

Forestry,

Hydroponics ,and

Fishing.

4.3.2 TOURISM

The current tourism destinations (or regions) that fall within the district municipality are the

‘Battlefields’ and ‘Drakensberg’ destinations (as defined by TKZN). The assessment of tourism in the

municipality is therefore based on data available for these destinations.

Foreign Tourism: an estimated 162 967 foreign tourists visited the district municipality in 2010. This

is based on 126 492 tourists to the Drakensberg and 36 475 tourists to the Battlefields. The main

source markets of foreign tourists in the district are the UK, Germany, Netherlands and USA (as

reported in the uThukela tourism strategy).

Secondary tourism corridors are identified to each tourism node in line with provincial draft policy

identifying a trekking route along the World Heritage Site. These routes lead from a primary corridor

route running between the town of Estcourt and the Oliviershoek Pass. Tertiary corridors are

identified to lead into the more rural areas adjacent to the Drakensberg World Heritage Site

connecting to primary and secondary tourism routes.

The tourism sector comprises three main parts. The berg experience with hotels, chalets and camp

sites located from Mount Aux Sources in the north through to Giants Castle in the south. The second

major part includes historical tourism involving the battlefields routes through the eastern part of


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the district. The third part involves game reserves and the wildlife experience in the lower lying

bushveld (as opposed to berg) areas of the district in proclaimed and private conservancies. This

includes an expanding area devoted to game farming and professional hunting. Adventure tourism is

closely linked to the berg and the bush experience.

Tourism Investment Potential

uThukela has the potential to become one of the most destinations of choice for tourists to

KwaZulu-Natal and South Africa, especially for those tourists who desire the country ambience. The

district is rich in natural, cultural and historical heritage with the major attractions being the

uKhahlamba-Drakensberg World Heritage Site and the Battlefields. In addition, the municipality has

cross-boundary linkages with Lesotho and the Free State (e.g. through the Maloti Drakensberg Trans

frontier Project); Amajuba and Umzinyathi Districts (e.g. Battlefields); and the midlands (including

the Midlands Meander). Further, the warm temperatures, summer rainfall, scenic beauty and

environmental significance of the area make the climate excellent for tourism.

Apart from other sectoral investment opportunities, tourism can also play a pivotal role in the

advancement of communities. The survey organised in the area has indicated that tourism sector

has the following investment opportunities:

Establishment of uThukela tourism route;

Expansion and consolidation of Weenen Game Reserve and potential to establish it as a Big

Five reserve;

Restore Umsuluzi Game Reserve near Colenso;

Upgrade the Rock Art Centres in Okhahlamba and develop environmental interpretation

centres;

Expansion of the Bushman cave in Okhahlamba,

Cableway in the Drakensberg;

Invest in the Giant Castle,

Develop township and rural tourism projects;

Develop a themed heritage and cultural route along the R74;

Develop a new conference venue in the district;

Reconstruction of Royal Natal Hotel;

Develop a themed tourism information node/hub and district craft hub along the N3 and

N11; and

Establish a hospitality and tourism training centre in the district.

4.3.3 MANUFACTURING

Manufacturing is among the significant economic sectors to the economy of uThukela in 2011 and

employed an estimated 16 082 people. The sector contributed 21% to total GVA and 14% to

employment within the district municipality in 2011. The district’s manufacturing sector contributed

5% to total manufacturing GVA of KZN in 2011, up from 4% in 2001. Employment in the


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municipality’s manufacturing sector as a proportion of total manufacturing employment in KZN

remained stable at 6% between 2001 and 2011.

The main sub-sectors within manufacturing of the district are food, beverages and tobacco;

petroleum products, chemicals, rubber and plastic; and then textiles, clothing and leather goods. All

of the manufacturing sub-sectors have remained relatively stable in terms of the contribution to the

manufacturing sector since 2000. The dominant manufacturing areas of the district are in

Emnambithi local municipality and Umtshezi local municipalities, with Ezakheni Industrial Estate and

Danskraal forming the major industrial areas in Emnambithi local municipality. Large manufacturing

enterprises are based in both municipalities and include Defy Appliances, Zorbatex, Nestle, Eskort,

Apollo Tyres and Clover.

Ezakheni was established as an industrial decentralisation point in the late 1960s by the nationalist

government and industry locating into the area relied on government subsidies up until the change

of government in the early 1990s. This resulted in the removal of the subsidy and the closure of the

more marginal companies in the industrial area (around 50% occupancy in the early 2000s). Since

then the numbers of companies operational at Ezakheni has increased owing to the benefits

associated with accessibility to land, rail road and utility services.

Manufacturing Investment Potential

There is a demand for manufactured products in uThukela such as clothing and textile, footwear,

furniture, food, beverages and building material. Further, uThukela local economy is dominated by

primary sectors, which implies that there is availability of raw material to a certain extent. However,

because the manufacturing sector is not developed and all its full potentials are not yet utilised, in

most instances raw material is transported to other centres outside the district for processing.

The following investment opportunities are available in the manufacturing sector:

Electronics

Clothing and Textile

Leather production;

Agro-processing,

Maize Mill,

Coffee waste transformation into mushroom

Charcoal plant,

Traditional medicine,

Transport and Machinery equipment.

4.3.4 TRANSPORP SECTOR

uThukela is mainly served by an East-West and North-South corridor. These corridors are the N11

national route that connects the N3 with Mpumalanga Province coal mining areas and the N3 that

forms an East-West link which connects two of the country’s most economically active metropolitan


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areas namely Gauteng and Durban in KwaZulu Natal. The N3 also serves a major urban community

namely Pietermaritzburg. Of all roads in the uThukela district area 1 410km are surfaced roads and 1

320km are un-surfaced or gravel roads. The majority of the surfaced roads can be found in

Emnambithi/Ladysmith municipality.

Transportation sector ranges from road freight transport, public road transport to rail freight

transport. Transport of goods from distributors and wholesalers to a range of rural retailers is also

growing in the area especially with the local transporters. This is allied to the requirements for

specialised manufacturing and servicing of the vehicles.

Transport Investment Potential

With regard to the transport sector, internal road networks within uThukela District are

underdeveloped as most communities access primary roads through gravel roads. Investment

opportunities in this sector include the following:

There is an opportunity for a Drive Port or one stop shop/rank around N3 and N11 to link

Lesothu, KZN, Mpumalanga and Swaziland,

The current rural road maintenance and upgrading are public investments that will create

jobs and alleviate poverty.

Opportunity exists to build new and formalise some informal taxi ranks in the area.

4.3.5 COMMERCIAL SECTOR

The commercial sector contributes substantially to the district GVA with wholesale and retail outlets

located in all the centres in the district and certain of the smaller centres located in the Ingonyama

Trust Board areas. Higher order commercial services are provided in Ladysmith, Estcourt, Bergville

and the Central business districts at Bergville and Winterton. Generally, the commercial sector in

this context is used as a generic term for most businesses included the following sectors (as defined

by the Standard Industrial Classification): (1) financial intermediation, insurance, real estate, and

business services, (2) wholesale and retail trade (excl. Hotels and restaurants), (3) community, social

and personal services. This can be grouped in small, medium and micro enterprises (SMMEs)

and informal traders.

The SMME sector in uThukela includes wholesalers and retail trade as well. The majority of

businesses are concentrated in major towns of the district and this makes them the

important commercial and service centres for other surrounding areas.

Further this sector includes the street trading which is one of the key means of living in the

district and makes an important contribution to the economic and social life of the majority

of the residents. It absorbs workers who would otherwise be without work or income. Most

people enter the informal economy in uThukela not by choice but out of a need to survive.

Especially in circumstances of high unemployment, underemployment and poverty, the


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informal economy has significant job and income generation potential because of the

relative ease of entry and low requirements for education, skills, technology and capital, but

the jobs thus created often fail to meet the criteria of decent work. There are large areas of

displaced urban/rural settlement in the district including Limehill, Loskop, Mazizini, Dukuza, Emaus

etc. Each of these areas has access to local spaza shops and some retail outlets which provide for

local needs of the community.

Commercial sector Investment Potential

The retail sector is concentrated in major towns of the district. The level of income leakages

is estimated to be moderate since the location of uThukela district is not far from major

provincial and regional towns such as Pietermaritzburg, Pinetown, and Durban.

Retail sector’s investment opportunities in this area include the following:

There are opportunities to construct a retail centres in all rural municipalities such as

Okhahlamba, Imbabazane and Indaka,

There is an opportunity to construct trading markets for SMMEs and informal traders

in all nodes around taxi ranks,

Sport facilities,

Warehouses,

Music academy,

Recording studio, and

Property development.


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5 UTHUKELA INVESTMENT PROFILE

This section presents the current public as well as private investments of uThukela District.

5.1 UTHUKELA PUBLIC SECTOR INVESTMENT

The focus here is on identifying major capital investment projects undertaken by the district with a

budget exceeding R 1 m. It should be noted that public sector investments in many cases are used

to establish new nodes, to serve as catalyst for further private investments in the area.

The table below is extracted from the Provincial Treasury payment estimates to district. This does

not provide a picture of the ‘public investment’ as it includes operational expenditure. However, it

provides an indication of the allocation of funds from the various national and local departments to

each district, of which a portion would be allocated to infrastructure development. From the graph,

it is clear that eThekwini and uMgungundlovu take the lion’s share of budget allocations, totaling

49.7%. uThukela receives approximately 5.7% of the total provincial budget.

Figure 5.1 Provincial Treasury payment estimates to districts

Source: KZN treasury

The graph below provides an indication of the specific public investment spending in the province

from the various departments in 2011:


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Figure 5.2 specific public investments spending in the province

Source: Provincial Spatial Economic Development Strategy (PSEDS) Database Analysis 2011

It is clear that the largest contribution of investment expenditure within the uThukela region is

attributed to the Department of Human Settlements, followed by the Department of Education and

then Co-operative Governance and traditional Affairs. The table below displays a total of all

departmental investment and the number of projects:

Table 5.1 Departmental Expenditures for uThukela

DEPARTMENTS TOTAL %

Arts & Culture 1,002,000 0.4

COGTA 28,202,250 10.4

DOE 89,414,905 33.1

DOA&E - 0.0

DEDT 2,047,000 0.8

DHS 147,438,000 54.5

DSD 201 0.0

DSR 2,100,000 0.8

DOT 287,725 0.1

Umgeni Water - 0.0

Total 270492081 100.0

Source: KZN treasury

In terms of specific public sector investment into projects within the District, the tables on the

following page provide a breakdown of the projects that are either historic, current or planned for

the District. This was extracted from the PSEDS District Profiles report for uThukela, and provides an

indication of the public sector investment in the region.


Page | 46

Table 5.2 EMNAMBITHI LOCAL MUNICIPALITY

LOCAL MUNICIPALITY SECTOR PROJECT NAME BUDGET

Emnambithi

Bulk infrastructure AERODROME R35 m

Link/access infrastructure Forbes street rank R10 m

Bulk infrastructure Ingula Pump Station R23 m

Facilities supporting econ. dev.

Ezakheni Sports Stadium R7,6 m

Link/access infrastructure SANRAL "upgrading N11" R13 m

Agriculture/Small business development

Agri Hub/Ezakheni Trading Centre R 4 m

Bulk Infrastructure District Offices and disaster management facilities

Sources: uThukela Spatial Economic Overview 2012. IDP 2013, and KZN Districts Comparative Advantages

Report 2012

Table 5.3 IMBABAZANE LOCAL MUNICIPALITY


Imbabazane

Bulk infrastructure Loch Sloy 1 R8 m

Bulk infrastructure Amangwe / Loskop R45,9 m

Bulk infrastructure Ntabamhlophe water supply Phase 1

R20,5 m


Cultural Village R15 m

Sport and recreation KwaMkhize Stadium R 2.1 m


Report 2012

Table 5.4 INDAKA LOCAL MUNICIPALITY


Indaka Facilities supporting econ. dev.

Ekuvukeni Trading Centre R20 m


Report 2012

Table 5.5 OKHAHLAMBA LOCAL MUNICIPALITY


Okhahlamba Corporate services Solid waste R5 m


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Corporate services Fresh produce market R 4 m

Corporate services Upgrading the Sewerage system R 39 m

Transport Upgrade R 181 R 81

Tourism tourism information node/Hub

R5,5 m

Tourism Upgrade Rock Art Centres R 2 m

Tourism Cable Car

Tourism

preservation, maintenance and upgrading of Battlefields and heritage sites and related infrastructure

R 1 m


Report 2012

Table 5.6 UMTSHEZI LOCAL MUNICIPLAITY


uMtshezi

Bulk infrastructure Nhlawe R8,1 m

Education Hospitality educational centre R 20 m


Small town rural rehabilitation R32 m

Bulk Infrastructure Mdwebu SS 2.5MVA 11/22kV R 4.4 m

Bulk Infrastructure Sub 57 upgrade Part1: R 4.5 m

Bulk infrastructure Bulk Water (Engodini) R 4 m


Report 2012

5.2 UTHUKELA PRIVATE SECTOR INVESTMENT

In terms of private investments in uThukela, there are existing investments or companies as well as

the planed ones. With regard to the existing investments or companies it should be noted that the

list of major employers in uThukela is dominated by manufacturers. A number of well-known

national and international brands have manufacturing plants in the District, mainly located in

Estcourt, Ladysmith and Ezakheni. Nine of the top 10 firms are household brand names. It is

interesting to note that even in this “industrialised” District a retailer features under the major

employers. Drakensberg Logistics and Pick and Pay are the only non-manufacturing firms featuring

under the major employers as presented in the following table.

Table 5.7 uThukela Companies Listed Employ Between 900 and 150 People

NO COMPANY ACTIVITIES

1 Masonite Estcourt Mill : Hardboard manufacturing

2 Defy Ezakheni : Appliance manufacturing

3 Dunlop Tyres : Tyre manufacturing

4 Durban Overall : Protective Clothing

5 Nestlé : Beverages


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6 Eskort Ltd Food : Meat products

7 Bata Shoes : Footwear

8 Zorbatex Towelling : Towel manufacturing

9 Canvas & Tent : Tent manufacturing

10 Lasher Tools : Hand tools

11 Narrowtex Production Plant : Webbing

12 Pick 'n Pay : Retail

13 Transvaal Bolt & Nuts : Metal products

14 Drakensberg Logistics : Transport services

uThukela Spatial Economic Overview 2012.

Some of the planned private investments of the district are presented in the following table


Page | 49

Table 5.8: uThukela Envisioned and Planned Private Sector Investments

ECONOMIC OPPORTUNITY PROJECT

DESCRIPTION LOCATION STATUS

1. Tourism

Amangwe Projects Tribal Game Park & Sporting Academy

Amangwane Lodge

Mnweni Lodge

Amangwane Sporting Facility

Amangwane Adventure and Activity Centre

Bergville Planned (±R 225 m)

Cableway development

Develop a cableway which will take tourists to the top of the Northern Berg Escarpment

Northern Berg Exploratory

Revive the Royal Natal Hotel

Construct and re-develop the derelict hotel in the Royal National Park

Royal National Park Planned

Bridge to nowhere tourism hub

Development of a tourism hub including arts and craft retail and a tourism information office on the incomplete N3 bridge.

N3 Ladysmith Planned

Bergville Hospitality School Developments of a hospitality school run by an FET college. Bergville Planned

uThukela Tourism Route A tourism route incorporating both the Western Drakensberg attractions and the eastern inland battlefield attractions

Throughout district Planned

Woodstock dam developments

Development of accommodation and recreational fishing on Woodstock Dam

Woodstock Dam Exploratory

Drakensberg/Maloti transfrontier Park

Establishment of transfrontier conservation area encompassing the Drakensberg in KZN; the Free State and Lesotho

Drakensberg/Maloti Mountain Range

Planned

Cannibal Route Tourism development around cannibal caves Exploratory

2. Agriculture

Satellite Hub for Johannesburg Vegetable Market

Unspecified Unspecified Exploratory

Qedusizi Dam Construction and alteration of the Qedusizi Dam from a flood continuation facility to a storage dam

Emnambithi Planned (±R250m)

Pecan Nut Project 60ha of land adjoining the Klip River has been made available for a pecan nut project to benefit emerging farmers

Klip River Planned (±R35m)

Aloe and Berg Teat project Unspecified Emnambithi Planned


Page | 50



Thukela Agricultural Hub Proposed development of a high-value intensive farming zone for local and export markets

Unspecified Exploratory

3. Manufacturing: textile industry

To create a textile and rubber SEZ

Promote the clustering of textile and rubber producers and retailers

Emnambithi Envisioned

To manufacture locomotives and couches

Naledi Rail Engineering intends to invest in Ladysmith to manufacture locomotives and couches

Emnambithi Envisioned

4. Transport Infrastructure

Logistics Hub (Trade Port) To develop an Inland Cargo Terminal Container Handling Facility, Intermodal Exchange Point, Refuelling Deport, Warehousing, Storage, Clearing and Forwarding

Emnambithi Envisioned (±R45m)

Regional Aerodrome The Municipality owns the airport, which requires upgrading to maximize the tourism and investment potential in this region. Ladysmith is ideally situated being halfway between Johannesburg and Pretoria and is the Gateway to the Okhahlamba Drakensberg World Heritage Site

Emnambithi Envisioned (±R80m)

5. Other investments

Properties Building a retirement village uMutshezi Envisioned

Building private hospital uMutshezi Envisioned

Retail and Commerce Expansion of the current Nestlé uMutshezi Envisioned

Ladysmith Black Mambazo Indigenous Music Academy

The local authority wishes to establish a Music Academy/ University in Ladysmith. This will also serve as a marketing/ branding strategy for the region e.g. ''City of Sound''. Ladysmith Black Mambazo will give regular performances, which will attract tourists and which will be an economic injection for the region

Emnambithi Planned (±R161m)

Commercial development on Helpmekaar Road, opposite Lasher Tool, Zorbatex and Dunlop

A proposal was received for the development of the following on this ±400ha of Municipal Land;

30 000 Spectator Sport Stadium

Residential Development

Hotel

Planned (±R 2300m)


Page | 51



Regional Shopping Centre

Health Centre

Swimming Pools

Tennis Courts

Athletics track

Call centre for ± 1000 people

Sources: KZN Districts Comparative Advantages Report – August 2012, KZN trade and Investment, and Stakeholders interviews


Page | 52

5.3 UTHUKELA INVESTMENT CONSTRAINTS

Stakeholders interviewed during the in-depth face to face interviews have highlighted a number of

constraints that refrain the pouring or flow of investments in uThukela district. These investment

constraints have been categorised into business related, infrastructural and general challenges as

presented below:

5.3.1 BUSINESS RELATED CONSTRAINTS

Lack or no Business Support Units/Stakeholders in some of the Municipalities

Currently some municipalities in uThukela district such as Imbabazane, Indaka and Okhahlamba do

not have a Small Business Unit to manage the investments and business sector. Business support

institutions (financial and services) are not available in these municipalities and local people do not

generally understand a range of programmes available to support business/manufacturing initiatives

although various funding sources and other supports exist for establishment and growth of

businesses.

Difficult Access to Land and Business Premises:

Access to land and business premises are a real challenge in the district, especially for those

operating in the agricultural sector. Some municipalities in the district do not own the land and the

private sector that owns it is very reluctant for its realise. The land reform programme as per the

national and provincial level is very slow.

Limited information flow both for local and international investors

Lack of access to appropriate and relevant information is one of the most important problems of

enterprises and particularly international investors. Some municipalities do not have Business

Support Agencies that deal with information sharing and advisory services. This has an impact on the

establishment of new investments in the area and on the growth of existing ones.

Low level of education and limited educational facilities in the Municipality

The lack of skills such as IT and computer-related skills, business management, customer care,

human resources skills, financial skills, technical skills constitutes a major threat to the local area and

impedes on the people to become active participants in the economy of the Municipality. As long as

the technical skills lack in the district, new investments will face a number of challenges to absorb

local labour force.

Safety and security issues to the business and investment

With regard to the level of crime it should be noted that the safety and security issue is a a country

wide challenge and this also applies to uThukela as well. Any crime is considered as a threat to

business development and investment promotion and facilitation.

5.3.2 INFRASTRUCTURAL CONSTRAINTS


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Poor Supply of Basic Services in the Area

There are backlogs in the provision of basic needs/infrastructure in uThukela district and this

challenge is more severe in rural municipalities such as Okhahlamba, Indaka and Imbabazane. The

current level of sanitation backlog indicates that the majority of uThukela residents do not have

access to any sanitation facility and the rural areas are the most under serviced areas in terms of

access to electricity.

Poor Road Network in the Municipality

A part from the N3 and N11 and other roads in Ladysmith and Estcourt, other roads in the district

are in a fair to poor condition. In addition, the following issues were also identified with respect to

these roads: inadequate storm water drainage, lack of adequate speed humps, lack of electronic

traffic calming measures, lack of properly aligned pedestrian walkways and poorly designed parking

bays. In the semi-urban areas roads are mainly gravel roads and in poor condition.

5.3.3 GENERAL CONSTRAINTS

Political Interference:

The majority of stakeholders in uThukela pointed out that local politicians/councillors prefer to put

their own interests and that of their political groupings before those of the community members and

economic development of the district. As a result a number of economic projects aimed at helping

community members are not implemented since they do not suit someone’s interests.

High level of Unemployment and Inequality in the District

The gap between the have and the have-not is wide in uThukela, the level of unemployment and

poverty is also high. The high level of unemployment and the low income level in the District impact

negatively on the limited buying power of the population. This has created issues around social

cohesion, with anecdotal evidence of extreme hate and crime between communities provided.

Inequality and unemployment need to be considered as threats to personal, community as well as

national development and effort needs to be put in place to fight against them.

Lack of clarity/ understanding of the mandate other government spheres at the local level

Currently some local officials think and want the provincial and national departments to be directly

involved in the development and implementation of their local projects, which fall outside the

mandate of these two spheres of government. National and provincial institutions and organisations

such as the DTI, TIKZN, EPWP, Cogta, DBSA have to be considered as reactive institutions to the local

municipal needs. In other words these institutions receive all suggested projects from local entities

and assist in the implementation process; however they are not having a primary mandate of

suggesting projects for local areas.

Further, LED strategy, IDP and other local plans need to be project driven rather than just being the

generic documents. In other words, LED Strategy, IDP and various other plans have to contain

understandable and implementable projects that may change the face of the District.


Page | 54

Additionally local officials lack the understanding of business and investment environment,

Others

Lack of collaboration between public and private sectors stakeholders,

Lack of marketing of the local areas and sectoral potentialities that may attract investors,

Municipalities and local officials lack to care for the current investors, with no incentives

provided for the current and future investments,

Possibilities for the municipal income generation are limited thus affecting service delivery.

In other words, the district is rural and populated by informal dwelling that do not pay rates

and taxes, this reduces the level of income of the district to intervene on key economic

projects,

Lack of thorough large scale researches on the key economic sectors of the district, on

environment impact assessment and on the zoning of the lands.


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CONCLUSION

The Situational Analysis Report presented a broad understanding of the concept investment

in terms of its definition, its related policies as well as its key national, provincial and local

role-players. The report also presented the economic synopsis of the district as well as an in-

depth analysis of the major economic sectors of uThukela.

Polices and strategies promoting investment include among others, the New Growth Path,

he National Development Plan, National Industrial Policy Framework (NIPF), the KZN

Provincial Growth and Development Strategy, the KZN Provincial Spatial Economic

Development Strategy, the KZN Industrial Development Strategy, the KZN Investment

Strategy, the KZN Export Strategy, the uThukela Local Economic Development Strategy, and

Integrated Development Planning. All these policies and strategies promote job creation,

investment promotion, economic development and growth.

Further, the report presented a number of public and private stakeholders and role-players

involved in the investment promotion and facilitation such as other national, provincial and

local departments, financial institutions and business chambers. It should be noted that all

the agencies/departments involved are coordinated, and maintain and constantly improve

upon their existing relationships, as each has a strategic role to play in assisting to promote,

attract and facilitate investment in KZN.

The report also presented details of the main economic sectors of uThukela District. These

included agriculture, tourism, manufacturing, transport, mining, and retail sector or trade

and commerce (Small Medium and Micro enterprises and Informal Sector). The report

highlighted the status quo and dynamics of the sectors and presented their investment

opportunities as well.

development of uthukela district municipality … · 2015-08-18 · uthukela district investment...

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