KwaZulu-Natal is the third-smallest province in South Africa, the second-largest contributor to the South African economy.
Fin24 reports that research done by Standard Bank found that the province will continue to make a contribution of 15.7% to the national GDP until 2017.
Amrei Botha, head of business banking at Standard Bank outlined the factors contributing to KZN’s ability to contribute.
Figures showed that KwaZulu-Natal accounts for:
– 26.9% of the country’s agriculture sector;
– 21.6% of South African manufacturing;
– 13% of the value added in the country’s construction sector;
– Around 15.7% of the country’s electricity, gas and water output – placing it in second position to Gauteng’s 33%;
– A share of about 17.8% of the country’s retail and wholesale trade, catering and accommodation;
– An anticipated 22.3% stake of the nation’s transport, storage and communication facilities;
– 13.4% of the country’s finance, insurance, real estate and business activities; and
– At least 13.4% of South Africa’s community, social and personal services sector activity.
Strong stance in manufacturing
Manufacturing, trade, transport and the finance sector are key role players in KwaZulu-Natal’s economy.
“Important to note is that agriculture, manufacturing, trade and transport have a comparative advantage, as these sectors are much larger in size in the province’s economy than in the national economy,” said Botha.
According to Standard Bank’s current projections, its annual growth expectations are very similar to those anticipated for the national economy.
“The manufacturing sector, with its expected contribution of approximately 17.1% to the province’s economy, ranks it as its fourth largest sector,” said Botha.
“Of significance is the fact that this share of the manufacturing sector in KwaZulu-Natal exceeds the size of the manufacturing sector in all the other provinces, as well as in the national economy (12.4%),” Botha said.
“At a more detailed economic sector level, the province’s strong stance in manufacturing is reflected by the comparative advantage it has in eight of the ten manufacturing related sub-sectors.”
“Many of the challenges faced by key sectors of the KwaZulu-Natal economy are similar to those experienced elsewhere in the country,” said Botha.
“However, the overall economic strength and diversification of the provincial economy will ensure that the province remains a key contributor to South Africa’s GDP.”