ILEMBE DISTRICT MUNICIPALITYNOVEMBER 2010
NOVEMBER 2010 QUARTERLY ECONOMIC INDICATORS AND INTELLIGENCE REPORT
THIRD QUARTER
July --- September 2011
Enterprise iLembe
Cnr Link Road and Ballito Drive Ballito, KwaZulu-Natal, South Africa Tel: 032 – 946 1256 Fax: 032 – 946 3515
iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
FOREWORD
This intelligence report comprises of an assessment of key economic indicators for the iLembe District Municipality for the third quarter of 2011, i.e. July – September 2011. This is the third edition of the quarterly reports which have been published since the first quarter of 2011 and are unique to iLembe as we are the only district municipality to publish such a report. The overall objective of this project is to present economic indicators and economic intelligence to assist Enterprise iLembe in driving its mandate, which is to promote trade and investment in the District of iLembe.
The release of this third Economic Quarterly Report coincides with COP17, being held in Durban later this month (November, 2011). All eyes will be on KZN during this internationally significant event, so what better time to exhibit the sustainable economic development initiatives being undertaken by private and public bodies alike throughout iLembe, as well as to promote iLembe as a top investment destination. For this reason, we have chosen to theme this quarter’s report ‘green’, and have included summaries of several of the environmentally friendly projects being carried out in the district, such as the manufacturing of Wonderbags, and production of renewable energy based on Moringa Seeds and Sugar Cane.
You might notice other changes in this third edition of the Economic Quarterly Report. The format has become more reader-friendly with more obvious groupings of data, and summaries included before each major section. New sections have been added, these include a section describing the latest news and developments within iLembe (we are proud to have been named the top municipality in the province for investment attraction in the FNB Business Awards); a section based on quarterly surveys conducted in iLembe describing business confidence (business confidence is a positive 6.9 for quarter 3); and a section describing new building plans approved, and new electricity and water connections made in each quarter.
Of course, all the raw economic data one should expect from such a report is very much present. The summary of economic indicators that follows reflects the hardships currently being experienced globally and nationally, in part, but they too reflect the unique ability that iLembe seems to have to insulate itself somewhat to these external shocks, and experience growth and development, despite the national conditions.
Kanyi Gasa, CEO, Enterprise iLembe
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Table of Contents Foreword ...... 2
Summary of Key Indicators ...... 7
Overview of the iLembe District Economy ...... 10
Latest News and Developments within iLembe ...... 11
Section One: iLembe Economic Indicators and Analysis (Quarterly Data) ...... 16
Summary of the State of the Economy: Quarter 3, 2011 ...... 16
Business Confidence ...... 18
Property Trends ...... 25
Transport Trends ...... 31
Tourism Trends ...... 37
Employment Indices for South Africa and KZN ...... 43
Enterprise iLembe Update (Q3) ...... 47
Enterprise iLembe Business Expansion & Retention Survey ...... 50
Summary of Key Findings in Section One ...... 54
Section Two: iLembe Economic Indicators and Analysis (Base Data) ...... 56
Demographic Profile ...... 56
Socio-Economic Indicators ...... 61
Employment Indicators ...... 65
Production, Expenditure and Investment ...... 73
International Trade ...... 80
The Informal Economy ...... 85
SAARF Living Standard Measure ...... 90
Summary of Key Findings in Section Two ...... 94
ANNEXURE ASSUMPTIONS AND COMPREHENSIVE ECONOMIC INDICATORS ...... 96
A1.1 Population and Households ...... 96
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
A1.2 Racial Profile ...... 96
A1.3 HIV and AIDS ...... 96
A1.4 Gender Profile ...... 97
A1.5 Age Profile ...... 97
A1.6 Energy used for Lighting ...... 99
A1.7 Type of Toilet ...... 99
A1.8 Water ...... 100
A1.9 Type of Dwelling ...... 101
A1.10 Education Level ...... 102
A1.11 Employment and Unemployment ...... 103
A1.12 Employment by type and skill level ...... 104
A1.13 Employment by Industry ...... 104
A1.14 Gross Geographic Product by Industry ...... 105
A1.15 Income and Expenditure ...... 106
A1.16 Expenditure by Category ...... 107
A1.17 Expenditure by sub-category ...... 107
A1.18 Domestic Fixed Capital Investment by Investment Type ...... 109
A1.19 Domestic Fixed Capital Investment by Industry ...... 110
A1.20 Building Plans KwaDukuza ...... 111
A1.21 New Service Connections KwaDukuza ...... 111
A1.22 Airport Passenger Movements ...... 112
A1.23 Port Movements ...... 112
LIST OF GRAPHS Graph 1 Respondents to Business Confidence Survey by Industry ...... 19 Graph 2 Business Confidence ...... 19 Graph 3 Business conditions, Q3 2011 ...... 20 Graph 4 Future Expectations of Business ...... 20
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 5 BER/RMB Business Confidence Index Quarter 3 ...... 22 Graph 6 Total Building Plans for KwaDukuza ...... 26 Graph 7 Number of New Water Connections for KwaDukuza...... 27 Graph 8 Three Phase Electricity Connections, KwaDukuza ...... 28 Graph 9 Single Phase Electricity Connections, KwaDukuza ...... 28 Graph 10 FNB House Price Index – Real and Nominal growth as of August 2011 ...... 29 Graph 11 Activity level by income for Quarter 3 2011 ...... 30 Graph 12 Total Airport Passenger Movements (quarterly percentage change) ...... 34 Graph 13 Total Cargo Handled (millions of tons) in Richards Bay and Durban ports ...... 36 Graph 14 Tourism Business Confidence ...... 37 Graph 15 Occupancy and Demand for Tourism Accommodation in iLembe ...... 38 Graph 16 Tourism Conditions, iLembe, Q3 ...... 38 Graph 17 Future Expectations (Tourism) ...... 39 Graph 18: Number of tourists visiting Sangweni Tourism Information Centre, 2011 ...... 40 Graph 19 Destinations visited in KZN 2009 (percentage contribution) ...... 42 Graph 20 Advantages and disadvantages to locating business in Ballito ...... 51 Graph 21 Sales over two years ...... 52 Graph 22 Main constraints to expansion ...... 53 Graph 23 Racial Profile for 2010 ...... 58 Graph 24 Gender profile 2010 ...... 58 Graph 25 Age Distribution for 2010 ...... 59 Graph 26 HIV Positive and AIDS deaths (2010) ...... 60 Graph 27 Energy used for lighting (2010) ...... 61 Graph 28 Type of Toilet 2010 ...... 62 Graph 29 Source of Water in 2010 ...... 63 Graph 30 Type of Dwelling in 2010 ...... 64 Graph 31 Employment Status in 2010 ...... 65 Graph 33 Employment contribution by Sector ...... 67 Graph 34 Formal Employment by Skill Level in 2010 ...... 68 Graph 35 Shift-Share Analysis for iLembe...... 70 Graph 36 Shift-Share analysis for iLembe by industry 2009/2010 ...... 71 Graph 37 Goss Geographic Product for 2010 ...... 74 Graph 38 Distribution of Expenditure in 2010 ...... 76 Graph 39 Breakdown of Total Expenditure into Sub-Categories in Quarter 2 (2011) ...... 77
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 40 Domestic Fixed Capital Investment per Industry in 2010 ...... 79 Graph 32 Formal and Informal Employment in 2010 ...... 87
LIST OF TABLES Table 1: Summary of Key Economic Indicators ...... 7 Table 2 SACCI BCI Quarter 3 (2011) ...... 21 Table 3 Implications of a change in the economic risk/conditions variables ...... 22 Table 4 Economic Risk Monitor ...... 23 Table 5 Residential, Commercial and Industrial Building Plans for KwaDukuza 2011 ...... 26 Table 6 Total number of vehicle registrations per licensing district ...... 32 Table 7 Quarterly trends in vehicle sales South Africa (Second Quarter, 2011)...... 33 Table 8 Port movements ...... 35 Table 9 South African Tourism Index: April to June 2011 ...... 41 Table 10 Overview of KZN tourism market 2009 ...... 41 Table 11 Jobs Created by Enterprise iLembe through Agricultural Projects ...... 47 Table 12: Population and Households (2010) ...... 56 Table 13: Household number for main places 2010 ...... 57 Table 14 Higher estimate of iLembe’s population based on StatsSA information ...... 57 Table 15 Unemployment rate, 2010 ...... 66 Table 16 Employment Location Quotient for iLembe ...... 68 Table 17 Shift Share analysis for iLembe by industry 2009/2010 ...... 70 Table 18 Percentage contribution to GDP 2010 ...... 75 Table 19 Household Income and Expenditure ...... 75 Table 20 Domestic Fixed Investment (%), 2010 ...... 78 Table 21 Total Exports per District Municipality ...... 80 Table 22 Percentage Growth and Contribution of each HS Coded Export Item in iLembe ...... 81 Table 23 Total imports per District Municipality ...... 82 Table 24 Growth and Contribution of each HS Coded Import Item in iLembe ...... 83 Table 25 Gross Geographic Expenditure ...... 84 Table 26 Types of Informal Activites in KwaDukuza ...... 87 Table 27 Description of SAARF Living Standard Measures ...... 90 Table 28 Percentage contribution to each LSM group by province...... 93
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
SUMMARY OF KEY INDICATORS
The table below contains a summary of the key indicators for iLembe within the context of the KwaZulu-Natal province, and highlights the provincial and district indicators for 2010, and the growth rate for the previous 5 years (up to and including 2010).
Table 1: Summary of Key Economic Indicators
Key Indicator KwaZulu- iLembe Natal 2005-2010 2010 2010 average annual growth rate Population 10,645,509 562,815 -0.14 % Households 2,494,981 134,275 -0.27 % Race (%) African 85.25% 90.48% -0.16 % Coloured 1.37% 0.46% 0.01 % Asian 8.64% 6.91% 0.11 % White 4.73% 2.15% -0.10 % Gender (%) Male 48.22% 48.35% 0.12 % Female 51.78% 51.65% -0.38 % Age (%) 0 - 14 years 33.09% 33.19% -2.39 % 15 - 29 years 31.13% 31.67% 0.93 % 30 - 49 years 22.47% 21.49% 1.28 % 50 - 65 years 8.87% 9.11% 0.75 % over 65 years 4.44% 4.53% 2.56 % HIV/Aids (%) HIV Positive 16.10% 16.82% 1.02% Aids Deaths 1.21% 1.27% 1.96% Education (% of total No Schooling 14.14% 14.09% -3.35 % population) Grade 12 10.94% 9.12% 0.61 % Tertiary 3.72% 2.78% 7.19 % Employment Employed (Formal and informal ) 2201538 9978 4 -1.81 % (number) Unemployed 630047 28783 -11.59 %
Not economically active 3863612 222025 5.45 % Type of Employment Formal 81.29% 78.32% -2.97 % (%) Informal 18.71% 21.68% 3.45 % Skill (%) Highly Skilled 12.79% 11.32% 0.73 %
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Key Indicator KwaZulu- iLembe Natal 2005-2010 2010 2010 average annual growth rate Skilled 43.10% 40.50% -1.23 % Semi and Unskilled 44.12% 48.18% -5% Employment by Agriculture, forestry and fishing 4.89% 9.52% -17.93% Industry (%) Mining and quarrying 0.61% 0.52% 18.20% Manufacturing 13.47% 16.79% -4.39% Electricity, gas and water 0.29% 0.11% -10.02% Constructio n 6.43% 6.44% 3.01% Wholesale and retail trade, catering and 22.05% 21.98% 2.87% accommodation Transport, storage and communication 5.69% 3.26% 1.87% Finance, insurance, real estate and 14.95% 13.58% 7.35% business services Community, social and p ersonal services 16.87% 17.19% 1.77% General government 14.74% 10.61% 4.39% Gross Value Added by Agriculture, forestry and fishing 4.41% 9.84% 1.28% Industry (%) Mining and quarrying 1.27% 0.83% -7.29% Manufacturing 22.14% 29.17% 0.15% Electricit y, gas and water 2.21% 0.93% -3.06% Construction 3.04% 2.83% 6.52% Wholesale and retail trade, catering and 14.17% 14.83% 4.24% accommodation Transport, storage and communication 13.63% 7.21% 1.75% Finance, insurance, real estate and 20.00% 19.85% 6.75% business services Community, social and personal services 6.25% 5.08% 2.87% General government 12.88% 9.43% 3.58% Expenditure (%) Durable Goods 10.12% 10.08% 3.65 % Semi -Durable Goods 12.58% 13.00% 9.93 % Non -Durable Goods 35.82% 36.02% 2.94 % Services 41.48% 40.90% 4.71 % Domestic Fixed Buildings and construction works 37.36% 32.57% 8.09% Investment (%) Machinery and other equipment 40.79% 49.22% -2.59% Transport equipment 20.13% 16.64% 5.63% Transfer costs 1.72% 1.58% -5.27%
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
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OVERVIEW OF THE ILEMBE DISTRICT ECONOMY
The iLembe District Municipality is situated on the east coast of South Africa, in the KwaZulu-Natal Province. iLembe is one of the 11 district municipalities of the KwaZulu-Natal province and is also the smallest District Municipality in the province, with a total population of approximately 563 000. The District Municipality covers approximately 3260 square kilometres and is divided into four local municipalities. The four municipalities are: • Ndwedwe Local Municipality • Mandeni Local Municipality • KwaDukuza Local Municipality • Maphumulo Local Municipality iLembe is located between two of Africa’s busiest ports, Durban and Richards Bay, on the primary economic development corridor in the province, and is therefore well positioned not only to local, but also international markets. The recent development of King Shaka International Airport and the Dube Trade Port just a few kilometres from the southern border of iLembe has magnified what was already a prime investment destination. Despite its strategic location, iLembe faces numerous economic challenges such as the high levels of poverty in the rural inland areas, which contrasts with rapid development along its coastal regions. The District has been proactive in developing Enterprise iLembe, a broad based institution aimed at facilitating local economic development, in response to its challenges of high rates of unemployment and correspondingly high levels of poverty.
iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
LATEST NEWS AND DEVELOPMENTS WITHIN ILEMBE
Focus on Sustainability
The biggest climate change conference on earth is due in Durban on the 28 th of November. COP17 is significant as it marks the end of the Kyoto Protocol’s first commitment period (2008-2012). As with the 2010 world cup, an event of this magnitude offers a multitude of benefits for the country and the province in particular. A conservative guesstimate based on an average daily estimate of 25 000 visitors spending R60- million per day for three weeks, suggests a R600-million financial benefit from COP17 for Durban alone. Given that most of the visitors will be coming to Durban via KSIA, it is likely that exposure for iLembe during this event is going to be enormous. The benefits will not only be felt directly but indirectly through the PR that is created. iLembe has a chance to exhibit green, sustainable projects that are planned and already underway in the district. Sustainability is a key focus for iLembe and the district’s wide array of innovative projects clearly represent this. The following exciting new projects represent just a few of the ways that iLembe is promoting sustainable development – see further sustainable projects in the section on Enterprise iLembe later in the report.
Without With Wonderbag Wonderbag Cooking time - stew 60 mins 15 mins Cooking time - pap 45 mins 10 mins Weekly paraffin 630 mins 150 mins cooking time Paraffin usage 4L 2.3L % cooking energy time 76%
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
saved iLembe has entered into a contract to produce Wonderbags with a focus on distribution within the district and perhaps even the province. Co-operatives are being set up to manufacture the bags and should be fully functional within the next month. What are Wonderbags? The Wonderbag™ is a heat-retention/insulation cooker. It will be disseminated by South Africa's first programmatic (POA) CDM project being registered by the UNFCCC and one of the first throughout the continent of Africa! The Wonderbag reduces the energy used in cooking by 76% which is not only environmentally friendly and healthy, but also has the potential to save paraffin oven users on average R63.50 a week or R3,300 a year! Furthermore, a million Wonderbags have the potential to mitigate approximately 500,000 tons of Green House Gasses! The benefits for the poorer segments of iLembe are huge. These include increased employment and skills development, improved health, rand savings, time efficiency and safety.
A Bio Diesel Refinery is currently being established in Mandeni which aims to deliver vehicle grade diesel from used oil (initially) and ultimately from Moringa seed. Capacity building of emerging farmers will be undertaken for the establishment of district wide Moringa nurseries and plantations to provide feedstock to the biodiesel plant. The project is a contribution to the development of the renewable energy technology industry as it will be SA’s first registered and fully compliant Biodiesel Project, setting the bench mark for SA’s emerging biofuels sector. The project will benefit communities across iLembe through job creation at the plant and nurseries, skills development, as well as health benefits that come with the increased utilisation of biofuels .
Tongaat Hulett has two mills operating within iLembe – Darnall and Amatikulu. A large proportion of the land in iLembe under sugarcane supplies these mills and those nearby. Tongaat Hulett is already undertaking co- generation using bagasse (sugarcane by-product) to cogenerate electricity and steam. They are now driving an initiative to increase renewable, zero carbon energy electricity cogeneration three to five times more at their mills. Renewable electricity produced will be used by the mills in the production of sugar, as well as for export under a renewable cogeneration procurement program. In the medium to long term, mills will also look to producing ethanol which is produced from export sugar.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Not only is this environmentally friendly, but it ensures the continued viability of sugarcane growing and expansion in iLembe, thereby securing current jobs and businesses, and providing opportunity for further agricultural job creation. The renewable energy initiatives will require sugarcane supply to double and will bring meaningful benefits to existing growers as well as the development in new areas in sugarcane in the rural areas of iLembe. This sustainable development initiative is vital for iLembe, as it relies so heavily on the agricultural industry for employment and gross geographic product (GGP). For more information on this initiative, please contact Vuyo Kona, Corporate Affairs Manager, Tongaat Hulett, Telephone: (032) 439 4114 E-mail: [email protected]
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
In other news...
A multibillion-rand health and wellness centre/step-down facility was recently launched for north of the Tugela River in Mandeni Local Municipality in February 2012. The centre will include medical facilities in a resort setting, including a hotel and villas. It is intended that patients seeking the most sophisticated treatments, operations and cosmetic surgery will fly in from around the world for cutting edge medical attention. Local and international
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
specialists will staff the centre, while patients will be able to bring along their families for support – and for a holiday – while they undergo their operations and treatment. As well as a hotel, there will also be a residential complex, schools, restaurants, shopping complexes and a wedding chapel. The project is expected to kick-start development north of the Tugela River where there is a high level of unemployment. Approximately 500 jobs are expected to be created in the construction phase and 1 000 permanent jobs thereafter.
iLembe District Municipality was named best municipality for attracting investment in The First National Bank KZN Top Business Portfolio Awards 2011 . The iLembe Chamber of Commerce, Business and Tourism was named best business chamber in South Africa for 2011 and now will be entered, as the representative for South Africa, into the international contest! And it is no wonder the chamber is gaining accolades, with projects such as the greening campaign which involves planting 5000 trees in 5 days in 30 schools, as well as ‘The Entrepreneur’ - a contest where local entrepreneurs get to exhibit their products for a panel of judges for much needed R220 000 prize money that will be used as seed capital for their businesses. ‘The Entrepreneur’ may just be the next hot reality TV show...
The 2011 world amateur golf finals will be held October 29 - November 5, 2011 at the 5-star Fairmont Zimbali Resort on the North Coast and played on three of South Africa’s finest golf courses right here in iLembe – Prince’s Grant Golf Estate, Umhlali Country Club and Zimbali Country Club. Over 35 countries have confirmed participation in this year’s event. KZN and iLembe have managed to secure the bid to host this event for a period of three years.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
SECTION ONE: ILEMBE ECONOMIC INDICATORS AND ANALYSIS (QUARTERLY DATA)
Summary of the State of the Economy: Quarter 3, 2011
Expected annual growth for South Africa in 2011 has been revised downwards to 3.1% given poor quarterly growth figures experienced in quarter 2, according Finance Minister Pravin Govender in his medium term budget policy speech. While the quarterly growth rate for the third quarter is expected to be below 1%, growth is unlikely to turn negative. KwaZulu-Natal has followed the national trend and is expected to record growth for 2011 of around 3%. Global economic woes, including the Euro-Zone debt crisis and unsustainable inflation hikes in the BRIC countries, are cited as the main cause of this retraction in growth.
While economic production data is not available quarterly for iLembe as it is for South Africa and the province, other economic indicators provide an insight into the state of the district’s economy this quarter. Data trends for quarter 3 provide mixed signals about the state of the economy in iLembe. Commercial, industrial and residential building plan approvals and completions have decreased in comparison to this time last year. However, planned and completed residential property developments spiked in June this year and are still showing signs of a healthy residential property market in Quarter 3 as the number of residential electricity and water connections are higher than Q3 2010. iLembe’s placement between the ports, and near to King Shaka International Airport is proving especially beneficial in these uncertain economic times. Passenger movements at both KSIA and Richards Bay airports experienced growth in the second quarter, and KSIA continues to grow at a higher rate than other international airports in SA. Cargo handled at both Durban and Richards Bay ports is 6% higher than for Q3 2010. As expected, tourism figures show a retraction in the winter months of the third quarter, and along with this retraction in demand comes a low tourism business confidence of 3.8 (out of 10).
When output growth is weak, net job creation also tends to be weak as is being experienced in South Africa. It was only thanks to a large increase in the informal sector that employment figures in KZN and SA remained steady in quarter two when compared to quarter 1 2011. As the Finance Minister points out, spending in these times needs to be directed at economic growth in order to prevent further job losses. Enterprise iLembe, iLembe’s investment and development agency, continue to promote development and create jobs in the district through innovative projects. Quarter 3 saw the completion of the broadband initiative which enabled wireless broadband, through fibre-optic undersea cable, throughout the district. This sort of high tech
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
development will serve to bring iLembe into the forefront of the knowledge, research and communications industries in South Africa, allowing iLembe to continue growing, even in these uncertain times.
Perhaps it is projects, and organisations such as these that are inspiring confidence into the iLembe District. This confidence is reflected in the results of the business confidence survey – businesses confidence for iLembe in quarter 3 is 6.9, which is double that for the country. In conclusion, the summary of indicators in this report reflects the hardships currently being experienced globally and nationally, in part, but they too reflect the unique ability that iLembe seems to have to insulate itself somewhat to these external shocks, and experience growth and development, despite the national conditions.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Business Confidence
The business confidence section is made up of the iLembe BCI based on surveys, the BER BCI which is also based on surveys, the SACCI BCI which is based on market analysis; and risk for the province which is calculated using market conditions. In quarter three, business confidence for iLembe is high at 6.9, relative to the BER BCI which is low at 39 (3.9), and the SACCI BCI which is also at a year on year low of 98.4 points. Risk for iLembe is relatively low compared to other regions of KZN and the economic conditions were less risky in August 2011 than the previous year August and the previous quarter this year.
Business Confidence in iLembe, Quarter 3
The business confidence survey is conducted online in the month after the end of each quarter (i.e. October for quarter 3), and is run for approximately two weeks. Emails containing the unique link to the online surveys are sent out to businesses that are registered with the iLembe Business Chamber, and businesses on the Urban-Econ database (please contact Urban-Econ if you wish to be added to this database and receive the quarterly survey results). There are no criteria for businesses to take part in the business survey (other than they must be located in iLembe). This quarter the business survey was completed by 70 businesses.
Business Survey 70% of businesses who responded to the business survey in quarter three belonged to the iLembe Business Chamber. Majority of the respondents are small (29%) and micro sized (35%) businesses but 22% are large business. Majority of businesses are in the ‘tourism, catering and accommodation’ industry and the manufacturing industry.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 1 Respondents to Business Confidence Survey by Industry
Graph 2 Business Confidence Business Confidence Business confidence is represented by the number of respondents that are satisfied with the prevailing business conditions. The Business Confidence Index for Quarter 3 of 2011 is 6.9 which means that 69% of respondents are satisfied with the business conditions. This is fairly high when compared with the national BER/RMB BCI which is at 3.9 but not that surprising considering the development, promotion and attention that the coastal iLembe belt is receiving.
Prevailing Business Conditions Businesses were asked to indicate movement (increase, decrease, no change) in certain indicators within their business in quarter 3 compared with quarter 2. The following shows that most indicators were unchanged in quarter 3. The demand for goods and services, however, has increased in quarter three when compared to quarter two. This is an excellent sign for future revenue and explains why business confidence is high as the receipt of orders/purchases is the most important contributor to business confidence (Bureau for Economic Research).
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Key Findings: Business Confidence • Business confidence for iLembe is high at 6.9, relative to the national BER BCI which is low at 39 (3.9), and the SACCI BCI which is also at a year on year low of 98.4 points. • Risk for iLembe is relatively low compared to other regions of KZN and the economic conditions were less risky in August 2011 than the previous year August and the previous quarter this year.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Property Trends
This section focuses on building plans, electricity and water connections in KwaDukuza as a reflection of new property development in the district. It also discusses the residential house market in South Africa as reported by FNB. While building plan approvals and completions show a decline overall in comparison to last year, residential property is still being planned and built in KwaDukuza, with large spikes in residential building this year in June. This is supported by new water and electricity connections which show increases in connections from last year for both small rural and large urban residential properties. This is surprising given the FNB property data shows that nationally prices are down on three years ago, and the market is still heavily skewed towards the supply side. One can conclude that KwaDukuza’s residential property market is doing well relative to other parts of the province and the country which is not experiencing the same trends. Could this be due to immigration from other areas of SA? Possibly the effects of the KSIA? Or the effects of KwaDukuza’s commercial activity, including high end professional services, growing rapidly?
Building Plans and New Service Connections for KwaDukuza
The following section looks at the total area of building plans approved, submitted and completed; the number of new water connection made; and the number of new single phase and triple phase electricity connections made over the last year in KwaDukuza. KwaDukuza has been chosen because it represents the majority of activity in iLembe.
Building Plans, KwaDukuza The graph below shows the total area (m 2) of building plans (including additions, alterations and deviations) approved, submitted and completed since January 2010. While approvals, submissions and completions are steady, with a large spike in June this year, they are all lower than this time last year and last year in general. August shows a drop in building activity overall, in comparison with last quarter. The table below provides a further breakdown of the figures for this year.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 6 Total Building Plans for KwaDukuza
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The table below gives a breakdown of approvals, submissions and completions and therefore provides an understanding of troughs and peaks in the graph above. Anomalies are highlighted in green. The spike in the graph above in June can be explained by residential building. In June this year, a new residential complex of 33,598m 2 (R235,186,000) was approved to be built; and a residential complex of 33,598m 2 was completed. A large amount of commercial building plans were submitted in May, June and August this year which is a positive sign. Industrial activity has been looking fairly dormant over the last 3 quarters.
Table 5 Residential, Commercial and Industrial Building Plans for KwaDukuza 2011
Residential, Industrial and Commercial split of Building Plans in KwaDukuza (Area m 2) APPROVED Jan -11 Feb -11 Mar -11 Apr -11 May -11 Jun -11 Aug -11 Residential 14,118 7,694 6,967 9,579 6,340 44,622 1,811 Commercial 12,900 0 0 133 0 1,708 2,097 Industrial 4,355 1,456 0 0 0 395 0 Total* 34,696 10,730 10,115 11,278 7,972 48,530 4,752
SUBMITTED Jan -11 Feb -11 Mar -11 Apr -11 May -11 Jun -11 Aug -11 Residential 5,652 8,254 16,308 8,189 11,329 32,304 16,252 Commercial 0 185 2,201 0 7,170 2,097 1,812 Industrial 0 0 479 0 395 0 0 Total* 7,158 12,274 21,325 10,654 19,881 36,649 19,125
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
COMPLETED Jan -11 Feb -11 Mar -11 Apr -11 May -11 Jun -11 Aug -11 Residential 3,141 7,876 10,220 10,111 6,004 41,108 7,628 Commerc ial 0 0 0 0 649 0 0 Industrial 0 1,818 0 359 912 0 0
Total* 6,012 10,132 11,855 10,895 8,267 41,263 8,068
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New water connections, KwaDukuza The graph below describes the number of new water connections made in KwaDukuza since the beginning of 2010. 81 new water connections were made in quarter 3, 2011 compared to 144 in quarter 3, 2010, and 180 in the last quarter (Q2, 2011). A downward trend since Q1 this year is evident.
Graph 7 Number of New Water Connections for KwaDukuza
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New electricity connections, KwaDukuza The adjacent graphs show the number of new single and three phase electricity connections for KwaDukuza. The number of new single phase connections represents the number of new small residential (3 bedroom house) and low cost housing (including prepaid connections). The graph shows an increase from the third quarter last year of 255 connections, but a decrease from the last quarter of 222 connections. The number of three phase connections represents larger, upmarket urban houses (with air conditioning etc.). Three phase connections are also up from last year by 7 connections, and are up from last quarter by 12 connections. It seems that urban development is on the rise again since lows in January this year. The number of maximum demand connections (commercial and industrial buildings) was 2 for Q3 which is the same as Q3 last year and is up from last quarter.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 9 Single Phase Electricity Connections, KwaDukuza
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Graph 8 Three Phase Electricity Connections, KwaDukuza
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FNB House Price Indices
The FNB house price index for September is the same as for August at 5.6%. This reflects a slowdown in the growth which has been experienced since the beginning of the year. This slowdown in growth is likely due to the effects of stimulus such as interest rates cuts wearing off. A pattern is emerging which shows that without some form of stimulus, real house prices will return to negative or flat growth. This is likely due to supply exceeding demand in the housing market. The average house price is 15% lower in real terms than it was three years ago.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 10 FNB House Price Index – Real and Nominal growth as of August 2011
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The graph below shows a demand rating supplied by real estate agents. The activity level is determined by surveying a selection of Real Estate Agents who are asked to rate demand for their area out of 10. Demand as assessed by estate agents has risen slightly by 3.7% in the 3 rd quarter of 2011, although the balance of supply vs. demand has yet to stabilise, with excess supply still putting a downward pressure on house prices. Demand has risen in the middle income segment (demand across all other sectors saw a decline in Q3). Middle income property is now the highest in regard to demand strength, followed by low income and then upper income.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 11 Activity level by income for Quarter 3 2011
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Key Findings: Property Trends • Building plan approvals and completions show a decline overall in comparison to last year; • Residential property is still being planned and built in KwaDukuza, with large spikes in residential building this year in June. • New water and electricity connections show increases in connections from last year for both small rural and large urban residential properties. • The FNB property data shows that nationally prices are down on three years ago, and the market is still heavily skewed towards the supply side. • One can conclude that KwaDukuza’s residential property market is doing well relative to other parts of the province and the country which is not experiencing the same trends.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Transport Trends
This section looks at trends in road vehicles, airport trends and port movements within iLembe, the province and nationally. Quarter three reflects that vehicle sales are growing, but at a continuously lower rate. Passenger movement through KSIA and even Richards Bay continues to grow in quarter 2, although it has not reached the numbers of 2010 at this time (due to the world cup influence). KSIA is experiencing the highest average monthly growth rate out of all international airports of 5%. The amount of cargo handled at Richards Bay and Durban ports is approximately 6% higher in quarter 3 2011 than in quarter 3 of 2010 which shows positive growth.
Vehicle Registrations
The table below shows the total number of vehicle registrations per licensing district. This is a good reflection on sales in these areas. Ndwedwe has the least amount of people who have registered vehicles in the area (387) and Mapumulo (732), while double that of Ndwedwe, still falls far shy of Stanger which has almost 37 000 vehicle registrations. From the table we can see that the registration of vehicles is growing slowly but steadily. Increases in Q3 were the highest this year. Maphumulo and Ndwedwe have increased in heavy load vehicles, where Stanger has decreased in heavy load vehicles but increased largely in light vehicle – this represents the spatial economic split of the iLembe.
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Vehicle Trends according to the NAAMSA Quarterly Review
On a quarterly basis, compared to the corresponding quarter in 2010, a mixed performance is apparent. Year on year quarterly comparisons show a substantial decline in growth momentum in the new car, light commercial and medium commercial vehicle segments. In contrast, sales of heavy commercial vehicles show a strong upward momentum.
In comparison to quarter 1 of this year, new car, and light and medium commercial vehicle sales have dropped by between 15% and 18.5%. On the contrary, heavy commercial sales have increased by 11.7%. It is predicted that figures for the 3 rd quarter (yet to be released) will show a continued decline in vehicle sales. This is due to both demand and supply factors. Supply is affected by increased input costs in labour and electricity, as well as a shortage of components while Japan recovers from the natural disaster earlier this year. Demand is reducing due to increased inflation and energy costs, as well as the effects and threats of another economic recession.
Table 7 Quarterly trends in vehicle sales South Africa (Second Quarter, 2011)
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Key features of the second quarter domestic vehicle industry: • Industry capital expenditure projected to increase in 2011; • Aggregate industry employment levels continued stable; • New vehicle sales continued to grow, but at a slower rate; • Export sales continue to show strong growth; • The short to medium term outlook is less positive than the beginning of 2011. The global economic direction is uncertain and volatile which may put a downward pressure on exports. Domestic market is expected to continue growing, albeit at a consistently lower rate.
iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Airport Passenger Movements
King Shaka International Airport lies on the North Coast and is only approx 13km from Ballito. 368,421 Passengers move through King Shaka International Airport monthly on average (2011), in comparison to 1,495,267 passengers monthly at OR Tambo, 665,100 passengers monthly at Cape Town International and 7,635 passengers monthly at Richards Bay Airport. While King Shaka is the smallest of the international airports in terms of passenger movements it is experiencing the highest monthly average growth rate of 5.3%. Since the King Shaka Airport has opened, it has seen a 4.8% increase in passenger movements. Quarter 2 has seen an increase in passenger movements at King Shaka from 1,197,627 in quarter 1 to 1,232,209 passengers in quarter 2 although it has not reached the numbers of 2010 at this time (due to the world cup influence). The graph below shows the quarterly changes in passenger movements for each of the four airports mentioned. Both Richards Bay and King Shaka International (which lie on either side of iLembe) have seen positive growth between quarter 1 and quarter 2.
Graph 12 Total Airport Passenger Movements (quarterly percentage change)
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Port Movements
Richards Bay and Durban contribute approximately 60% of all port movements in South Africa. This is economically significant for iLembe because iLembe is situated between these two ports and therefore, the activity of these two ports is a good gage of economic activity in the area in general.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
The table below gives comparative figures for quarter 3, 2011. The figures in red show a decrease from the previous quarter and the figures in green show an increase. Total cargo handled has increased across all ports in quarter three in comparison to quarter two. This is to be expected given that stock for Christmas sales is now coming into the harbour. Positively, however, cargo handled has also increased from Q3 last year suggested that bulk imports have increased. Durban is the only port at which the number and tonnage of vessels that entered the harbour was less in Q3 than in Q4.
Table 8 Port movements
Port Quarter Total Cargo Handle d Total Number of Gross Tonnage of (metric tonnes, Vessels Vessels (millions) millions)* Richards Bay Q1 -11 13,698 454 15,708 Q2 -11 11,793 446 14,464 Q3 -11 21,936 451 16,366 Q3 -10 20,845 Durban Q1 -11 19,470 1,057 31,822 Q2 -11 19,916 1,108 32,579 Q3 -11 21,230 1,092 31,452 Q3 -10 19,941 South Africa Q1 -11 64,478 2,827 79,165 Q2 -11 63,423 3,292 81,905 Q3 -11 65,650 3,260 83,016 Q3 -10 61,363
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The graph below shows the trends in cargo handled at Richards Bay and Durban ports since January 2010. It is clear from the graph that troughs are experienced in Q2 and peaks in Q3, and that these are more extreme for Richards Bay than Durban which is steadier.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 13 Total Cargo Handled (millions of tons) in Richards Bay and Durban ports
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Key Findings: Transport Trends • Vehicle sales are growing, but at a continuously lower rate. • Passenger movement through KSIA and even Richards Bay continues to grow in quarter 2, although it has not reached the numbers of 2010 at this time (due to the world cup influence). KSIA is experiencing the highest average monthly growth rate out of all international airports of 5%. • The amount of cargo handled at Richards Bay and Durban ports is approximately 6% higher in quarter 3 2011 than in quarter 3 of 2010 which shows positive growth.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Tourism Trends
This section discusses the results from the tourism quarterly survey conducted by Enterprise iLembe; the number of visitors to the Sangeweni Information Centre in Ballito this quarter; the South African Index for tourism this quarter; and finally some general tourism stats for KZN released in 2010. Tourism confidence in iLembe is low at 3.8; visitors to Sangweni are down 20% from last quarter and the South African index shows declines in international visitors across the board except for African Land Markets. Figures are down, as we would expect for these winter months.
Tourism Survey
The tourism confidence survey is conducted online in the month after the end of each quarter (i.e. October for quarter 3), and is run for approximately two weeks. Emails containing the unique link to the online surveys are sent out to tourism places of accommodation on the Urban-Econ database (please contact Urban-Econ if you wish to be added to this database and receive the quarterly survey results). This quarter the business survey was completed by 25 places of accommodation.
Tourism Business Confidence Similarly to the business survey, business confidence for Graph 14 Tourism Business Confidence tourism in iLembe is represented by the number of respondents that are satisfied with the prevailing tourism conditions. Unlike the business survey, tourism confidence is low at 3.8. This is more in line with the national figures for business confidence we have been seeing over the last quarter, although surprising considering that other business sectors within iLembe seem to be far more confident. Interestingly, businesses within ‘tourism, catering and accommodation’ sector in the business survey were they only sector to give a majority unsatisfactory response. This shows that results coincide. It is usual for tourism business to be down in the third quarter as these are the winter months – a truer confidence level will be measured over the next two quarters.
Prevailing Business Conditions (Tourism) 25% of tourism accommodation businesses said that average occupancy between July and September, 2011 was between 31% and 40%, with 60% of accommodation facilities having an average occupancy under 40%.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Demand for accommodation is rated from 1 (low demand) to 5 (high demand). Average demand for the last quarter is 3 – representing fair demand.
Graph 15 Occupancy and Demand for Tourism Accommodation in iLembe
Over 50% of tourism businesses said that occupancy compared to this time last year, and compared to last quarter has decreased. This is true also of revenue. Only 10% said that revenue had increased this quarter in comparison to last quarter.
Graph 16 Tourism Conditions, iLembe, Q3
Future Expectations (Tourism) There are no surprises when it comes to how tourism businesses expect bookings and revenue to behave in quarter 4 when compared to this quarter. As one would expect, tourism is expected to increase over the summer holiday period.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 17 Future Expectations (Tourism)
Number of tourists visiting Sangweni Tourism Information Centre, 2011
The number of people who make any type of query at the Sangweni Tourism Information Office in Ballito is recorded monthly and gives an indication of the number of new tourists visiting Ballito. This does not represent actual figures for the North Coast but gives a helpful indication of trends based on a segment of tourists in the North Coast. The graph below shows that there are approx 4 times the amount of local tourists (average of 296) than international tourists (average of 76) visiting the TIC every month. Local tourist figures spiked to a high of 412 over the April period, likely due to the Easter Holiday period. International tourists visited more frequently in the first 5 months of the year (summer months), but have dropped off since the onset of winter (June). Quarter 3 has seen a reduction of both local and foreign tourists of 20% when compared to quarter 2.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 18: Number of tourists visiting Sangweni Tourism Information Centre, 2011
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South African Tourism Index: Q2 2011
The second quarter of 2011 saw just under 2 million tourist arrivals to South Africa, a decrease of -1.3% (135,232) compared to the same period in 2010. Tourist arrivals decreased by 18.9% (121,551) during the month of June 2011 compared to that of June 2010. The decline was anticipated as South Africa hosted the FIFA World Cup during June and July in 2010. This event on its own contributed in excess of 309 000 tourist arrivals.
There was a decline in tourist arrivals to South Africa from most regions, with the largest declines coming from the Americas (-34.1%) followed by Europe (-15.1%). Arrivals from the Africa land markets grew by 12.6%, the only region which recorded growth in this period. Against this, total foreign direct spend (excluding capital), or tourism revenue, also decreased by an estimated 5.0% (-R0,9 billion) in Q2 2011 to reach R16,3 billion. Tourist revenue from Africa air markets, Americas, Asia & Australasia, Europe all declined by 5.1%,46.0% and 17.2% respectively, while revenue from Africa land markets increased by 10.3%.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Table 9 South African Tourism Index: April to June 2011
Tourism Figures for KZN, 2009
The table below describes key tourism indicators for KwaZulu-Natal in 2009. These are the most recent figures available at this time. KZN receives far more tourists from within South Africa (mostly from within KZN itself) than from international markets. It is interesting to note, however, that international tourists spend 10 times as much per trip than domestic tourists and therefore have a higher total market value even though there are far less of them.
Table 10 Overview of KZN tourism market 2009
Foreign Visitors Domestic Visitors Number of Visitors Annually 1.213 million 8.8 million trips Average Spend per Visitor R7 215 spend R720 per trip Total Market Value R8.75 billion R6.34 billion Average Length of Stay 6.5 nights 4.3 nights Main Source Markets UK, USA, France, KZN, Gauteng
Germany, Netherlands
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From the graph below it is clear that Durban Metro attracts the highest proportion of domestic and international tourists. The Elephant Coast attracts the next highest proportion of international tourists whereas the Drakensberg and Battlefields attracts the next highest proportion of domestic tourists.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 19 Destinations visited in KZN 2009 (percentage contribution)
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Key Findings: Tourism • Tourism confidence in iLembe is low at 3.8; • Visitors to Sangweni Tourist Information Centre are down 20% from last quarter; and • The South African index shows declines in international visitors across the board except for African Land Markets.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Employment Indices for South Africa and KZN
The following employment indices and indicators are drawn from the Quarterly Labour Force Survey released by Statssa, and the Adcorp Employment Index which is released by Adcorp monthly. Statssa figures indicate that total employment in SA and KZN has remained virtually unchanged between Q1 and Q2. Majority of job losses were experienced in the manufacturing industry. Unemployment rate in KZN was unchanged in Q2, while the unemployment rate increased in SA and 6 other provinces. The Adcorp monthly figures suggest that employment grew by a slight 2.5% in September, mostly due to a 4.0% increase in employment by temporary employment agencies and a 7.7% increase in employment in the unofficial economy .
Quarterly Labour Force Survey
The Quarterly Labour Force Survey (QLFS) is a household-based sample survey conducted by Statistics South Africa (Stats SA). It collects data on the labour market activities of individuals aged 15 years and above who live in South Africa. This section presents the key findings of the QLFS conducted in April–June, 2011 (Q2:2011) as figures were not available for Q3 at the time of going to print.
The number of persons in the labour force increased by 181 000 between Q1:2011 and Q2:2011. Employment remained virtually unchanged between Q1:2011 and Q2:2011. Formal sector employment contracted by 21 000 jobs while informal sector employment increased by 34 000 jobs. Between Q1:2011 and Q2:2011, some industries lost jobs while others created jobs, resulting in employment remaining virtually unchanged between the two quarters. Most of the job losses were in Manufacturing, which accounted for 68 000 of the job losses, followed by Mining (31 000), and Trade (18 000). Job gains were observed mostly in the Finance (73 000) and Transport (50 000) industries.
The table below shows that between Q1:2011 and Q2:2011, job losses were experienced in most provinces with the biggest job losses recorded in Gauteng (34 000), followed by North West with 31 000 job losses and Eastern Cape with 16 000 job losses. However, the biggest impact was in North West where employment contracted by 4,3%. Job gains were observed in KwaZulu-Natal (71 000) and Western Cape (21 000). The year- on-year comparisons (Q2:2010 and Q2:2011) show that North West was the hardest hit province in terms of job losses (31 000). However, job gains were observed in KwaZulu-Natal (64 000) and Eastern Cape (35 000).
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Table: Employment by Province
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The graph below shows an increase in the unemployment rate in six of the nine provinces in Q2:2011 compared to Q1:2011. The biggest increase in the unemployment rate was observed in North West (2,3 percentage points), Eastern Cape (2,0 percentage points) Limpopo (1,8 percentage points) and Gauteng (1,3 percentage points). KZN remained unchanged at 20.3% unemployment rate which is lower than for the country which is at 25.7% in quarter 2. The comparisons between Q2:2010 and Q2:2011 indicate that there was an increase in the unemployment rate in Mpumalanga (up by 2,7 percentage points) and Gauteng (up by 1,3 percentage points). The provinces that experienced a decrease in the unemployment rate in the same period were Limpopo (1,3percentage points) and Northern Cape (1,1 percentage points). KZN saw a decrease in unemployment of 0.6% from Q2 2010.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph: Unemployment Rate by Province
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Adcorp Employment Index
Adcorp, an employment services company, possesses sources of data, both within the group and from industries and sectors in which the group operates. Although Adcorp is not fully representative of the South African economy, it comprises of a relatively high proportion of temporary, part-time and other “atypical” employment types, therefore, Adcorp data tends to have a leading-indicator relationship with broader employment.
Employment grew by a slight 2.5% in September, mostly due to a 4.0% increase in employment by temporary employment agencies and a 7.7% increase in employment in the unofficial economy. All other categories of employment were essentially unchanged.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph: Adcorp Employment Index
Key Findings: Employment • Statssa figures indicate that total employment in SA and KZN has remained virtually unchanged between Q1 and Q2. • Majority of job losses were experienced in the manufacturing industry. • Unemployment rate in KZN was unchanged in Q2, while the unemployment rate increased in SA and 6 other provinces. • The Adcorp monthly figures suggest that employment grew by a slight 2.5% in September, mostly due to a 4.0% increase in employment by temporary employment agencies and a 7.7% increase in employment in the unofficial economy .
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Enterprise iLembe Update (Q3)
Enterprise iLembe is the Economic Development Agency for the iLembe District Municipality responsible for Trade & Investment Promotions and Local Economic Development in the region. Since their inception two years ago, the agency has been responsible for an enormous amount of development and promotion within the district which has resulted in real infrastructure and employment creation. Enterprise iLembe believes that the world and environment they serve, and the communities they serve must be a reflection of their own achievements and work. “WE REMAIN ACCOUNTABLE TO THE PEOPLE WE WORK FOR, our communities and the iLembe ‘family’”. They believe that continued effective collaboration and genuine effort between public and private sector, is what will bridge the economic divide.
Agricultural Projects Table 11 Jobs Created by Enterprise iLembe through Agricultural Projects
Jobs created Direct Indirect Total KZN is faced with unique problems when it through Agricultural comes to the development of land due its Projects history of separate development. Much of the Vineyards 48 19 67 Open Fields 107 42 149 land is under community ownership, with a Other Agriculture 70 28 98 scattered development pattern. The challenge Total Jobs Created 225 89 314 for KZN is to move from small scale subsistence agriculture to commercial farming in these previously neglected rural areas. Enterprise iLembe has been prolific in their initiation of diverse and unique agricultural projects in order to rise up to and overcome this
challenge.
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£ ¢ ¦ £ This project involves the establishment of 8 hydroponic (tunnel) farms in the four local municipalities, as well as a pack-house on each site and a processing facility. Over R13 million has been invested into this project to date, 70 jobs created, and profits are already being reaped through the sale of
high quality fruit and vegetables harvested.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
have been identified, 107 jobs created, and R1.2 million has been invested.
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£ ¦ ILembe Vineyard projects involves the establishment of a primary Villard Blanc crop that will be grown as a catalyst to the establishment of a wine industry in the district. This involves the going of grapes within the Local Municipalities that will be used in the winery to produce wine and brandy, table grapes and fruit juice. Thus far, 48 jobs have been created, and R4.7 million has been invested.
Arts and Crafts One of the Districts craft projects, Nombika Craft, has been nominated by DTI to participate at the food and wine exhibition in Pretoria. The exhibition will commence on the 24 th of November 2011 . Sales made at the Arts and Craft Hub situated at the Sangweni Tourism Centre as from June 2010- September 2011 amount to R 43 502 for the direct sales and R40 000 for the orders secured, bringing the total up to R83 502.00 made at the Arts and Craft Hub.
Bio-diesel Manufacturing This project aims to establish a bio diesel processing plant, delivering vehicle-grade diesel from used oil (initially) and ultimately from Moringa seed. The site for the Bio Diesel refinery has been located in Mandeni, on Ingonyama Trust land and is in the process of being built. R4.3 million rand has already been invested into the plant. Phase 2 of the Project is the Moringa Tree plantations Project. The purpose of this project is to facilitate a process whereby small growers or communities with land able to participate in a district wide programme by planting and supplying Moringa to a centralised biodiesel manufacturing plant.
Broadband Project The broadband Project aimed to capitalise on the recent live launch of Seacom undersea fibre optic cable on the north coast. A feasibility study has been completed that highlighted the benefits to both the metro and rural communities in terms of access to telecommunications, access to markets and increased digital capacity. The Ilembe District currently holds a private telecommunications network license (PTN), which entitles iLembe to build and operate a telecommunications network. As such, a pilot platform was created within the District to connect 3 Local Municipalities, namely, Ndwedwe, Maphumulo, and KwaDukuza utilizing Broadband infrastructure. This project is now 100% complete! The service provider Dimension data has been requested at the last PSC meeting on the 22 nd of September to draw up a maintenance agreement for the infrastructure.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Nonoti Mass Beach Resort This is an exciting new tourism project planned for the Nonoti River Mouth in KwaDukuza which will uplift the currently underdeveloped area of Nonoti and compliment the planned Blythdale Coastal Resort. The resort will be an exhibition of the Zulu Culture by using soft ethnic colours and materials, and including a 5-star tented camp! KZN has been losing a number of visitors to neighbouring destinations because of lack of suitable product. This resort will address the issue of a product needed to place KZN on the international map. The resort will be well positioned being 30 minutes from King Shaka International Airport and also ideally located approximately 1,5 hours away from the Hluhluwe-Mfolozi Game Reserve. A plan of action was drawn up by the members of the Project Steering Committee (PSC) at a meeting on the 23 September 2011 and the action plan was forwarded to the Mayor for review and feedback. COGTA approved application for R 1 200 000 funding. The project will then commence with the Environment Management Framework (EMF) and Environmental Impact Assessment (EIA).
The Mambulu Titanium Project Mambulo is located in the Maphumulo Local Municipality. Enterprise iLembe together with Trade and Investment KZN commissioned a feasibility study that MINTEK has completed to determine whether there were titanium deposits in the area. The findings were positive. The next main task is to map the area and source funding for drilling to commence.
Future Projects Fresh Produce Market (tender out for a feasibility study to be conducted); and 5 more open farms (preparation beginning this month).
For more information on these projects and a large amount of potential investment opportunities visit www.enterpriseilembe.co.za
Key Findings: Enterprise iLembe Update • Agricultural projects (agri-processing hubs, vineyards, open farms) have created 314 jobs to date – 5 more open farms are planned for this year, as well as completion of the agri-processing hubs; • Bio-Diesel refinery being built in Mandeni, phase 2 (Moringa tree planting) commencing; • Broadband project is now complete, the district, including the rural areas, is now connected; • EMF and EIA underway for the 3-star Nonoti Beach Resort; and
• Fresh Produce Market feasibility study out to tender.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Enterprise iLembe Business Expansion & Retention Survey
The B,E&R survey was run by Enterprise iLembe in partnership with the iLembe Chamber of Commerce, Industry and Tourism over June and July this year in Ballito. Funding was provided by the Industrial Development Corporation (IDC). The survey’s intention was to capture what it is like to be in business in the Ballito area and record ideas, concerns, priorities and obstacles to economic growth. Only a selection of the report has been reproduced here.
• 61 businesses were surveyed, majority were in the Business Park area. • Businesses surveyed covered a variety of activities; over 25% are in the finance, insurance, property or business services, 23% are in wholesale retail or motor trade while construction and building formed nearly 20% of the total. • Almost all businesses are locally owned. • 36% of businesses have been operating for 1-5 years, 31% for 6-10 years, 21% longer than 10years and 12% less than one year. • Local customers are the main source of sales (41%), 31% focus on KZN, while 28% do business throughout South Africa. None see international customers as their primary target. • 60% purchase the bulk of their supplies from within KZN and 22% from other parts of South Africa. Relatively few (17%) can find supplies locally. • Majority of business (46%) have increased staff numbers of the last two years and plan to increase staff numbers over the next two years (64%). A large majority of the skills in demand are sales and marketing skills; as well as business and financial management skills.
The following graph describes the advantages and disadvantages to locating business in Ballito (advantages in blue and disadvantages in purple).
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 20 Advantages and disadvantages to locating business in Ballito
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Majority of business owners (74%) see quality of life as a key advantage to doing business in Ballito. Other advantages include the image of the area (67%), access to customers (51%) and the local market (41%). The most frequently mentioned disadvantage was the unreliability of electricity supply (49%). Other disadvantages include the lack of municipal support (43%), poor public transport (41%) and expensive rates and services (38%).
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 21 Sales over two years
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The graph shows that 63% of businesses say that sales have increased over the last two years. 85% expect sales to increase which shows that business confidence in Ballito is good. 80% of businesses have not considered selling, moving or closing in the last two years which also shows high business confidence.
Business opportunities lie in the fact that there are products in demand locally that are not produced locally such as electrical repairs, quality furniture, IT and computer maintenance, the services of mechanical engineering workshops, packaging, panel beaters, power tools, printing including size A0, general motor vehicle spares, speciality food, wholesale dry goods as well as bakery and supermarket supplies. The following products and services are not purchased locally for price reasons: wholesale cement, cool-drinks, chocolate, dairy products, fish and meat, paper and stationary.
When asked what new businesses would succeed in Ballito, suggestions included: artists, authors, electronic traders, cinema, gym, laundry, printers, security equipment supplier and an arts and crafts heritage market in Umhlali, as well as businesses relating to above mentioned products. Restaurants and fast food outlets were mentioned several times.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 22 Main constraints to expansion
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43% of businesses consider the small size of the local market the main constraint to expansion. Other constraints include availability of finance (32%), too much competition and problems relating to the municipality (28%). These largely included the poor supply of electricity.
Key Findings: Business Retention and Expansion Survey • Majority of business owners (74%) see quality of life as a key advantage to doing business in Ballito. • The most frequently mentioned disadvantage was the unreliability of electricity supply (49%). • 43% of businesses consider the small size of the local market the main constraint to expansion. • Business opportunities lie in the fact that there are products in demand locally that are not produced locally
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Summary of Key Findings in Section One
This sub-section pulls together the key findings from each of the previous sub-sections in order to provide a composite understanding of the current quarter’s economic state.
Business Confidence • Business confidence for iLembe is high at 6.9, relative to the national BER BCI which is low at 39 (3.9), and the SACCI BCI which is also at a year on year low of 98.4 points. • Risk for iLembe is relatively low compared to other regions of KZN and the economic conditions were less risky in August 2011 than the previous year August and the previous quarter this year.
Property Trends • Building plan approvals and completions show a decline overall in comparison to last year; • Residential property is still being planned and built in KwaDukuza, with large spikes in residential building this year in June. • New water and electricity connections show increases in connections from last year for both small rural and large urban residential properties. • The FNB property data shows that nationally prices are down on three years ago, and the market is still heavily skewed towards the supply side.
Transport Trends • Vehicle sales are growing, but at a continuously lower rate. • Passenger movement through KSIA and even Richards Bay continues to grow in quarter 2, although it has not reached the numbers of 2010 at this time (due to the world cup influence). KSIA is experiencing the highest average monthly growth rate out of all international airports of 5%. • The amount of cargo handled at Richards Bay and Durban ports is approximately 6% higher in quarter 3 2011 than in quarter 3 of 2010 which shows positive growth.
Tourism Trends • Tourism confidence in iLembe is low at 3.8; • Visitors to Sangweni Tourist Information Centre are down 20% from last quarter; and • The South African index shows declines in international visitors across the board except for African Land Markets.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Employment • Statssa figures indicate that total employment in SA and KZN has remained virtually unchanged between Q1 and Q2. • Majority of job losses were experienced in the manufacturing industry. • Unemployment rate in KZN was unchanged in Q2, while the unemployment rate increased in SA and 6 other provinces. • The Adcorp monthly figures suggest that employment grew by a slight 2.5% in September, mostly due to a 4.0% increase in employment by temporary employment agencies and a 7.7% increase in employment in the unofficial economy .
Enterprise iLembe Update • Agricultural projects (agri-processing hubs, vineyards, open farms) have created 314 jobs to date – 5 more open farms are planned for this year, as well as completion of the agri-processing hubs; • Bio-Diesel refinery being built in Mandeni, phase 2 (Moringa tree planting) commencing; • Broadband project is now complete, the district, including the rural areas, is now connected; • EMF and EIA underway for the 3-star Nonoti Beach Resort; and • Fresh Produce Market feasibility study out to tender.
Business Retention and Expansion Survey • Majority of business owners (74%) see quality of life as a key advantage to doing business in Ballito. • The most frequently mentioned disadvantage was the unreliability of electricity supply (49%). • 43% of businesses consider the small size of the local market the main constraint to expansion. • Business opportunities lie in the fact that there are several products in demand locally that are not produced locally
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
SECTION TWO: ILEMBE ECONOMIC INDICATORS AND ANALYSIS (BASE DATA)
Most socio-economic data is not available on a quarterly basis at a District and Local Municipal level. This section comprises of the most recent economic intelligence and statistical analysis available for iLembe and its LMs. Data is mostly secondary data gathered from reputable statistical sources. It is broken down into various sub-sections, which include a demographic profile; a socio-economic profile; education, employment and skills; economic activity; and international trade.
Demographic Profile
Population and Households
The iLembe District has experienced an average yearly growth rate of -0.14% in population since 2005, bringing the population total in 2010 to approximately 562,815 people. The total number of households in iLembe is 134,275. This figure has been declining by 0.27% over the previous five years.
The total population and number of households have been declining in Ndwedwe and Maphumulo Local Municipalities, whereas the total population has been increasing in Mandeni and KwaDukuza Local Municipalities. This is consistent with provincial and national trends which indicate that an increasing proportion of the population previously housed in rural areas are migrating to urban areas in search of employment and other opportunities. This is expected given that KwaDukuza and Mandeni house much of the formal economic activity in the region.
Table 12: Population and Households (2010)
Population Households
Number Average Yearly Number Average yearly Growth Rate Growth Rate (2005 – 2010) (2005 – 2010) iLembe 562,815 -0.14% 134,275 -0.27% Mandeni Local Municipality 131,570 0.16% 36,483 1.36% KwaDukuza Local Municipality 171,984 0.77% 46,773 -0.44% Ndwedwe Local Municipality 144,568 -0.90% 29,542 -1.22%
Maphumulo Local Municipality 114,692 -0.82% 21,476 -1.15%
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Table 3 shows the number of households in Greater Ballito (Ballito Bay, Compensation Beach, Deepdale, Deepdene, Tugela, Willard’s Beach, Blythedale Beach, Darnall, Salt Rock, Shaka’s Rock, Shakaskraal, Tinley Manor beach, Zinkwazi Beach) and Greater KwaDukuza Town (Blowhard Estate, Chris Hani, Etete, Glen Hills, Ntabaningi, Shakaville, UCC informal, Groutville amongst other smaller areas) in 2010.
Table 13: Household number for main places 2010
Main Place Number of Households
Greater Ballito 1 7 546
Greater KwaDukuza Town 2 25 229
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It should be noted that, given that it has been 10years since the last census was conducted, population figures are a rough estimate. Figures released by stats SA show a higher estimate of population in iLembe. The following table represents this higher estimate.
Table 14 Higher estimate of iLembe’s population based on StatsSA information
Municipal Census 1996 Census 2001 DWAF 2004 Census 2006 Backlog Area Study 2007
Mandeni 111 909 128 669 137 129 138 736 131 830
KwaDukuza 131 091 158 582 169 022 179 963 252 053
Ndwedwe 167 404 152 495 162 452 134 754 208 447
Maphumulo 124 703 120 642 128 549 115 045 212 909
iLembe 535 107 560 388 597 152 568 498 805 239
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Racial Profile
Graph 1 displays the racial profile of the district and local municipalities. For the district and all local municipalities besides KwaDukuza, Africans comprise over 90% of the total population, with KwaDukuza having the largest Asian population (predominately Indian) of 18.3%. KwaDukuza also contributes the largest portion of Whites (5.3%) of which a large numbers reside in the urban area of Ballito. Maphumulo comprises the largest African population (99.9%). In terms of average yearly growth rates, the Black and White
1 Greater Ballito includes Ballito Bay, Compensation Beach, Deepdale, Deepdene, Tugela, Willard’s Beach, Blythedale Beach, Darnall, Salt Rock, Shaka’s Rock, Shakaskraal, Tinley Manor beach, Zinkwazi Beach 2 Greater KwaDukuza town includes Blowhard Estate, Chris Hani, Etete, Glen Hills, Ntabaningi, Shakaville, UCC informal, Groutville amongst other smaller areas
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
populations declined slightly over the previous 5 years, whereas the coloured and Asian populations experienced a positive growth rate.
Graph 23 Racial Profile for 2010
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Gender Profile
Graph 2 displays the gender distribution of the district and local populations. The gender split is fairly equal for most of the municipalities besides Maphumulo, which comprises 44.7% of males and 55.3% of females.
Graph 24 Gender profile 2010
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Age Profile
Graph 3 provides an indication of the age distribution within the district. From the graph it is clear that Maphumulo has a much greater percentage of the population under the age of 19 years (54.2%) in comparison with iLembe (44.5%). For all the local municipalities as well as the district, over 50% of the population falls under the age of 24 years old, while 62.5% of the iLembe population falls within the working age bracket (15 – 64 years). The most substantial decline in growth in iLembe is within the 0 – 14 year age bracket, which experienced an average decline in growth of 2.3% per year. This trend is also identified in the local municipal population between 0 – 14 years of age. The most substantial increases in growth occur in the over 70 year’s bracket.
Graph 25 Age Distribution for 2010
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Education Profile
As the table shows, 22% of all people in Percentage of people age 25+ iLembe KZN iLembe above the age of 25 years have no with the following level of schooling. This is 3% higher than the rest of schooling KZN. Only 12% have matric and 5% have No Schooling 22% 18% some form of tertiary education. These Grade 12 12% 19% percentages are both lower than the average Tertiary 5% 7% for KZN.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
HIV/AIDS Deaths
The final demographic indicator is that of HIV positive individuals and AIDS Deaths recorded. Graph 4 displays these trends. In 2010, Mandeni had the highest incidence of HIV with almost 20% of the population being infected by the virus, while 16.8% of the district population were infected. All of the municipalities have however experienced a decline in HIV prevalence growth over the period 2005 – 2010, with an average yearly decline of 1.02% in iLembe. With regards to AIDS deaths, the same trend is observed, however at an even greater decline of 1.96% per year. This is a positive sign and indicates that preventative measures have been fairly successful in reducing the incidence of HIV and related AIDS deaths within the district.
Graph 26 HIV Positive and AIDS deaths (2010)
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Key Findings: Demographic Profile • Out-migration of residents from Ndwedwe and Maphumulo to areas with urban-centres such as KwaDukuza and Mandeni; • Over 50% of the population falls under the age of 24 years old, while 62.5% of the iLembe population falls within the working age bracket (15 – 64 years). • iLembe has experienced a decline in HIV prevalence of 1% per annum
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Socio-Economic Indicators
Four socio-economic indicators are assessed before moving onto an analysis of growth indicators. The indicators analysed below are used as a measure of growth of social infrastructure such electricity, access to water, type of housing and type of toilets.
Energy used for lighting
Electricity is the major source of energy for lighting in the district and both the Mandeni and KwaDukuza local municipalities, accounting for 63%, 78%, and 86% of total energy sources respectively. Ndwedwe and Maphumulo are however both lagging behind the district trend with only 28% and 35% of the population having access to electricity respectively, although growth trends indicate that Maphumulo has experienced a growth in electricity usage. These households are predominately using candles as their main source of energy.
Graph 27 Energy used for lighting (2010)
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Type of toilet
The type of toilet used is displayed in graph 6 below. The percentage of people using flush or chemical toilets is still relatively low for all municipalities, with an average of 28% for iLembe. This trend is higher for both
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Mandeni and KwaDukuza (35% and 39% respectively), with Ndwedwe only achieving a rate of 16% and Maphumulo a very low rate of 7%. The largest source of toilet facility for all municipalities are pit latrine toilets, with this accounting 70% in Maphumulo, and 58% for the entire district. Graph 28 Type of Toilet 2010
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Source of Water
Graph 7 displays the distribution of access to water in iLembe. KwaDukuza has the highest occurrence of water within the dwelling of 28% of the population, with the district average of almost 17% of the population. Again, Ndwedwe and Maphumulo are lagging behind with only 5% of their respective populations having access to water within their dwelling. A large portion of the district population (21%) still use a dam, river, stream or spring for water, with the largest contributing local municipalities being Ndwedwe (38%) and Maphumulo (57%).
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 29 Source of Water in 2010
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Type of Dwelling
The graph below displays the final socio-economic indicator, namely the type of dwelling occupied by the respective populations. 38% of the district population live in a brick structure on a separate stand, i.e. a formal house structure. The largest contributor to this is KwaDukuza (50% of the population) and Mandeni (42% of the population), with Ndwedwe and Maphumulo only contributing 26% and 21% respectively. About 32% of the district population lived in a traditional dwelling made from traditional materials, of which Ndwedwe and Maphumulo were the largest contributing populations (49.7% and 69.3% respectively). About 9% of the iLembe population lived in an informal dwelling or shack, with contribution from 15.1% of the Mandeni population, and 12.4% of the KwaDukuza population. This could be explained by the negative population growth rates for Ndwedwe and Maphumulo, where people have moved into informal dwellings in KwaDukuza and Mandeni in search of employment.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 30 Type of Dwelling in 2010
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Key Findings: Socio -Economic Indicators
• Ndwedwe and Maphumulo are lagging behind the district with regards access to electricity; Less than 28% of the district population have access to a flush or chemical toilet; • • Less than 17% of households have access to water inside their dwelling;
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Employment Indicators
Graph 9 provides a picture of the current employment environment in the district and local municipalities. Over 60% of the district population, fall within the working age bracket of 16 – 65 years old, however only 29% of the population belongs to the labour force. This gives a labour force participation rate of under 50% which is poor. Only about 28% of the population was formally and informally employed in 2010, with this figure being as low as 12% for Maphumulo.
The percentage of unemployed people is low, between 3% and 12%, however this does not give a true reflection of the current employment situation due to the high number of not-economically active persons. For all municipalities the percentage of not-economically active persons is over 50%, with the district at 63% and Maphumulo at 85%.
In terms of growth in employment, it is important to note that the annualised average growth rate of approximately -1.7%. An interesting observation is that KwaDukuza, although having the largest percentage of employment in the district has experienced a -2.85% average annual decline. Maphumulo on the other hand, although experiencing the lowest employment rates, has achieved the greatest average annual employment growth in the district of 3.25%.
Graph 31 Employment Status in 2010
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
The table below shows the unemployment rates for iLembe and the local municipalities. iLembe has an unemployment rate of 22.4% which is average for the province and the country. KwaDukuza has the lowest unemployment rate at 16% and Maphumulo has the highest unemployment rate at 30.3%.
Table 15 Unemployment rate, 2010
iLembe Mandeni Kwa Dukuza Ndwedwe Maphumulo Local Local Local Local Municipality Municipality Municipality Municipality Unemployment Rate 22.4% 27.5% 16.1% 30.3% 21.5%
The graph below shows employment by industry in iLembe. Employment trends are similar to GGP/production trends with employment loss being experienced in the agricultural sector (12%) and the manufacturing sector (3.6%). The highest growth in employment has been in the business services sector and the government sector. The wholesale, retail, catering and accommodation sector is the largest contributing sector to employment in iLembe, accounting for approximately 22% of total employment. This same sector contributes 25%, 23%, and 19% to total employment in Mandeni, KwaDukuza and Ndwedwe respectively. The sector has grown at an average annual rate of 2.6% since 2000, indicating the strength of the sector. KwaDukuza is the economic hub of the distinct and possesses most of the formal retail, wholesale and accommodation facilities within the district, and therefore is the largest contributing municipality with about 11271 people employed in the sector.
Manufacturing is another significant sector within the district, and creates approximately 17 017 jobs which comprise 16.8% of total employment in the district. This has predominately been driven by activities within the Mandeni and KwaDukuza local municipalities, both which have a substantial industrial capacity, contributing 26.5% and 15.6% to total employment respectively. A shift-share employment analysis shows that manufacturing and agricultural losses in employment were completely due to external factors and that without poor conditions in South Africa and in these two industries, iLembe would have experienced an increase in employment.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 32 Employment contribution by Sector
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Graph 13 displays the breakdown of formal employment into the three skills categories. In terms of highly skilled individuals, between 10% and 13% of the formally employed in all municipalities are highly skilled, with 13% of those formally employed in Mandeni being highly-skilled. This is predominately due to the industrial development within the Isithebe Industrial Estate which attracts a greater number of highly-skilled workers to the area. Just over 40% of the formally employed district population are skilled persons, with this contribution being a little less in KwaDukuza and Ndwedwe due to more semi-skilled and unskilled employees.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 33 Formal Employment by Skill Level in 2010
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Employment Location Quotient
Most location quotients are less than 1 indicating that iLembe is employing proportionately less people per industry than the rest of South Africa. This is especially true of the Electricity, gas and water industry (0.41) and the wholesale and retail trade, hotels and restaurant sector (0.52). This means that employment in those industries has potential to grow, it also means that iLembe does not have a comparative advantage in these sectors. The location quotient for the Agriculture, forestry and Fishery sector is 3.63 which shows that employment in this sector in iLembe is proportionally much higher than the rest of South Africa. Shocks to that industry would result in substantial employment loss for the municipality. This is true also of the manufacturing industry which has a location quotient of 1.85.
Table 16 Employment Location Quotient for iLembe
2005 2006 2007 2008 2009 2010 Agriculture, forestry and fishing 3.75 3.75 3.67 3.61 3.59 3.63 Mining and quarrying 0.04 0.05 0.05 0.05 0.05 0.05 Manufacturing 1.53 1.56 1.58 1.68 1.83 1.85 Electricity, gas and water 0.40 0.41 0.40 0.40 0.40 0.41 Construction 0.60 0.63 0.64 0.65 0.66 0.66 Wholesale & retail trade; hotels & restaurants 0.47 0.50 0.51 0.52 0.53 0.52 Transport , storage and communication 0.71 0.74 0.75 0.77 0.77 0.77 Finance, real estate and business services 0.52 0.55 0.56 0.57 0.58 0.57
Personal and General Government Services 0.74 0.74 0.73 0.72 0.71 0.71
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
LQ<1 Employment for iLembe in this industry is less than expected when compared to SA LQ=1 Employment for iLembe in this industry is the same as employment for this industry in SA LQ>1 Employment for iLembe in this industry is greater than expected when compared to SA
Employment Shift-Share Analysis
Shift-Share analysis is a tool used to explain changes in employment. Changes in employment in iLembe can be attributed to the state of the national economy, the state of a particular industry nationally, or conditions unique to iLembe. The following information box further explains this.
Shift -Share analysis: National Share: Refers to the change in iLembe’s employment (growth) that can be attributed to the total change in employment in South Africa. It represents the affect of the economic environment in South Africa on iLembe. Industry Mix: This refers to the change in iLembe’s employment that can be attributed to the change in employment of specific industries in South Africa. It represents the affect of South Africa’s high or low growth industries at any specific time on iLembe. Regional Shift: This refers to the change in iLembe’s industry employment that can be attributed to factors unique to iLembe’s economy. It compares employment growth in a specific industry in iLembe to the employment growth of that same industry in South Africa. It therefore shows where iLembe has the
As we can see from the graph below, 2009 was a low point for employment in iLembe. This drop in employment can be explained by the national state of the economy (due to the similar drop in national share index), which can in turn be explained by the global economic crisis. Interestingly, relative to national industry decline, iLembe’s industries faired quite well which shows that the factors unique to iLembe protected growth in the local economy from the economic downturn. However, this is a double edged sword for when it comes to the recovery that South Africa has been experiencing in 2010/2011, iLembe has yet to catch up with national growth in employment figures.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 34 Shift-Share Analysis for iLembe
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The table and graph below provide more detail – they explain changes in employment per industry in iLembe. It is clear from the graph that Agriculture and Manufacturing are the two sectors which enjoy a comparative advantage in iLembe as they have grown at a better rate over the 2009/2010 period than their national counterparts. Although these sectors have experienced a negative change in employment, this has been due to external factors. The health of these industries in iLembe is relatively very good and therefore investment should be directed into these two sectors.
The fact that the main lagging industry is Government Services is perhaps not such a bad thing as it shows that growth in the iLembe economy is becoming less dependent on government spending than other municipalities in South Africa. Other lagging industries include trade and finance which have also endured negative growth. Although this negative growth partly reflects the economic environment in South Africa it is also partly due to unique factors within iLembe’s economic environment which shows that iLembe is not an economy with a comparative advantage in trade and financial services.
Table 17 Shift Share analysis for iLembe by industry 2009/2010
National Industry Regional Change in Share Mix Shift employment
Agriculture, forestry and fishing -124.34 -130 100.72 -153 Mining and quarrying -1.17 3 3.72 5
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Manufacturing -126.97 -193 43.76 -276 Electricity, gas and water -1.38 -10 1.00 -10 Construction -17.86 3 -12.25 -27 Wholesale & retail trade; hotels & -44.84 -13 -34.78 -92 restaurants Transport , storage and -18.41 33 -17.05 -2 communication Finance, real estate and -43.56 -27 -33.53 -104 business services Personal and General -79.98 96 -53.77 -38
Government Services
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Graph 35 Shift-Share analysis for iLembe by industry 2009/2010
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Key Findings: Employment Indicators • Over 60% of the district population fall within the working age bracket (16 – 65 years); • Only 28% of the working age population are employed in iLembe, with over 63% being not economically-active; • ‘Manufacturing’; ‘wholesale and retail, catering and accommodation’; ‘finance, insurance, real estate and business services’; and ‘community, social and personal services’ contribute almost 70% to those formally employed; • The location quotient for iLembe is less than 1 for all industries except Agriculture and Manufacturing which shows that these are areas of comparative advantage. • The shift-share analysis for iLembe further exacerbates that iLembe enjoys a comparative advantage in Agriculture and Manufacturing.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Production, Expenditure and Investment
This section covers a variety of specifically economic indicators and provides an understanding of the economic statues of iLembe, as well as its leading and lagging industries.
Gross Geographic Product
In 2010 iLembe’s GVA (an indicator of gross geographic produce) was R14451.36million. This accounts for 3.8% of KZN’s GGP (while iLembe is home to 6% of KZN’s population). Over the last ten years GVA has been growing at an average annual rate of 3.1% which is average for the province (KZN has been growing at 3.7%). As the graph shows, the tertiary sector is responsible for most of iLembe’s production and has been growing at a rate of 5.1%, the secondary has been growing at 1.7% annually and the primary sector has been declining at 0.6% annually 3. These growth rates are also average for the province where the tertiary sector has experienced relatively high growth and the primary sector has experienced negative growth.
Graph 15 displays the contribution of each industry to total GGP in 2010. The most significant sector within the district is manufacturing, contributing 29.2% to total GGP. Manufacturing accounts for 39% of the Mandeni economy, 29% of the KwaDukuza economy, and 18% of the Ndwedwe economy, with manufacturing in Maphumulo only contributing 8%. The manufacturing sector in Ndwedwe, although on a small-scale, experienced about 7.5% average annual growth since 2000, with growth in Mandeni declining at -0.5% per annum on average, increasing 2.6% in KwaDukuza, and increasing by 2.7% annually on average in Maphumulo.
The finance, insurance, real estate and business services sector contributed just under 21% to total GGP in the district, and has experienced substantial average annual growth since 2000 (7.7%). This was primarily driven by the huge growth in this sector within Mandeni, which experienced a 17.4% average annual growth rate, while
3 The primary sector includes mining and agriculture; the secondary sector includes manufacturing and industry; and the tertiary sector includes all services such as finance, trade, transport and government services.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
this sector contributed over 28% to the total GGP of Mandeni. This sector also contributed about 18% to total GGP in KwaDukuza, which has experienced a more modest 3.5% average annual growth since 2000.
Agriculture, although only accounting for 9.8% of total GGP in iLembe, contributed just over 22% in Ndwedwe, indicating the significance of this sector to the local economy of Ndwedwe. A number of agriculturally-related initiatives have been completed, or recently been implemented by Enterprise iLembe within most of the local municipalities, and it is expected that these activities once fully established will enhance the contribution of the agriculture sector within iLembe. In addition, opportunities now exist for the export of time-sensitive agricultural products and agri-processing given the establishment of the Dube Tradeport.
Graph 36 Goss Geographic Product for 2010
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Tress Index
The tress index for iLembe in 2010 is 51.1 which means the economy of iLembe is slightly concentrated and would be vulnerable to economic shocks. The tress index is not very high, however, and should not be a reason for concern as long as the manufacturing sector remains diverse within itself. It is promising that since 2006 the tress index has been slowly but steadily decreasing - this shows that the economy is becoming more diverse.
Table 18 Percentage contribution to GDP 2010
% Tress index 2010 : 51.1 contribution to GDP Tress index 2008: 52.9 Manufacturing 35.10 Personal and General Gove rnment Services 15.33 Tress index 2006: 53.4 Agriculture, forestry and fishing 13.24 The tress index measures the diversity Wholesale & retail trade; hotels & restaurants 12.48 Finance, real estate and business services 11.69 of a particular economy on a scale of 0 Transport , storage and communication 6.73 (completely diverse) to 100 (completely Construction 2.80 Electricity, gas and wate r 1.95 concentrated).
Mining and quarrying 0.67
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Income and Expenditure
Table 19 Household Income and Expenditure
Average annual income per household for iLembe is R112,034 Household income and expenditure for (R9,336 per month) which is lower than the province which has iLembe (Rand Millions) an average annual income of R156,251 per year (R13,020 per Total Household Income 11,600 month). Total household income for 2010 in iLembe was Remuneration 7,861 estimated at R11,600 million, of which 92% was used as Unearned Income 3,739.8 household expenditure. Of total income, remuneration Total Household Expenditure 10,720 accounted for 68% and whole unearned income accounted for 32% of total income which suggests that a third of households in the district are surviving on government grants and remittance. Mandeni and KwaDukuza accounted for 72% of total household income in the district which again shows the spatial economic dynamics of the district. Total expenditure in KwaDukuza exceeds total income, indicating that people are spending on credit. Maphumulo has the highest proportion of unearned income (41% of total household income) which indicates that a relatively large portion of households received grants in Maphumulo.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 16 displays the contribution of expenditure across the four categories of expenditure for each municipality. Durable goods comprised about 10% - 11% of total expenditure within all of the municipalities, with semi-durable goods comprising between 11% - 16% of total expenditure. The most significant categories of expenditure are non-durable goods and services, which account for between 72% - 77% of total expenditure. Non-durable goods expenditure was the highest in Ndwedwe (40% of expenditure), while services contributed 39% to expenditure in Mandeni, 46% in KwaDukuza, and almost 36% in both Ndwedwe and Maphumulo.
Graph 37 Distribution of Expenditure in 2010
Source: UrbanUrban----EconEcon Estimates babasedsed on Quantec’s StaStandardisedndardised Regional Dataset (2010(2010))))
This provides some indication of where households within each municipality are spending their money, while graph 17 provides a detailed breakdown of the sub-categories within each main category as a percentage of total expenditure. Food, beverages and tobacco is the largest expenditure category contributing 24% to total expenditure in iLembe, and as high as 26% of total expenditure in Ndwedwe. With regards to transport and communication, this sub-category of expenditure contributed almost 9.4% to total expenditure in iLembe, and again accounted for a larger proportion of total expenditure in Mandeni (9%) and KwaDukuza (10%) than Ndwedwe (7%) and Maphumulo (7%). Rental contributed 10% in the district and Clothing and footwear contributed 8% to total expenditure in the district.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 38 Breakdown of Total Expenditure into Sub-Categories in Quarter 2 (2011)
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Domestic Fixed Capital Investment
A final indicator of economic activity that is assessed is domestic fixed capital investment by type and sector. The table below shows that investment is mainly being directed into machinery and other equipment which is normal for an economy with a large agricultural and/or manufacturing sector. Investment into this category is decreasing, however, along with the agricultural and manufacturing industries and is being replaced by investment into building and construction works which, again, is not surprising when one considers the urban development occurring along the inland and coastal corridors as well as in the town of Ndwedwe.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Table 20 Domestic Fixed Investment (%), 2010
Domestic Fixed Investment (%), 2010 KZN iLembe iLembe growth rate Buildings and construction works 37.36% 32.57% 8.09% Machinery and other equipment 40.79% 49.22% -2.59% Transport equipment 20.13% 16.64% 5.63%
Transfer costs 1.72% 1.58% -5.27%
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The graph below displays the breakdown of capital investment into the various sectors within iLembe. From the graph below it is clear that domestic fixed investment in iLembe has been predominately channelled into the manufacturing, transport, storage and communications, as well as finance, insurance, real estate and business services sectors. However, within the local municipalities the situation varies according to the comparative advantages of that municipality. 17% of investment within Mandeni was in the finance sector, 41% into manufacturing, while investment into transport and storage contributed just over 12%. Within KwaDukuza 11% of investment was into agriculture, 30% into manufacturing, 16% into transport and storage and 14% into finance. Investment in Ndwedwe was more evenly distributed between the sectors, with agriculture (19%), manufacturing (16%), electricity, gas and water (12%), transport and storage (18%) and general government (11%) all contributing substantially. In Maphumulo, investment was dominated by the transport, storage and communication sector (43%) and the general government sector (almost 18%).
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Graph 39 Domestic Fixed Capital Investment per Industry in 2010
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Key Findings: • ‘Manufacturing’ accounted for over 29% of total GGP in iLembe, with ‘finance, insurance, real estate, and business services’ accounting for 20%, and ‘wholesale, retail, catering and accommodation’ accounting for 15%. • 63.5% of total income is remuneration, while the remaining 36.5% is unearned, government grants. • ‘Durable goods’ contribute 10% to total expenditure, while ‘semi-durable goods’ contribute 13%, ‘non-durable goods’ contribute 35%, and ‘services’ contribute 41%; • ‘Clothing and footwear’, ‘food, beverages and tobacco’, ‘rent’, ‘medical services’, and ‘transport and communications’ are the largest expenditure categories within the district; • Over 81% of domestic fixed investment was into ‘building and construction’ and ‘machinery and other equipment; and • The majority of fixed investment was into the ‘Manufacturing’, transport, storage and communications’, and finance, insurance, real estate, and business services’ sectors.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
International Trade
International trade statistics provide an indication of how well the district municipality has fared in comparison to other districts within the province in terms of exports to other countries (not to other provinces), as well as an assessment of the specific items exported by the district. It should be noted that figures are gathered from SARS who use postal codes to determine where exports originate and imports go to. These postal codes, however, do not always represent where the activity takes place but rather where the head office is situated. For this reason, figures should be viewed with some caution.
Table 9 displays the percentage growth in exports from 2000 – 2010 for each district, as well as the percentage contribution of that district to total provincial exports in 2010. iLembe only contributed 0.27% to total provincial exports in the province. Exports originating from iLembe have grown fairly slowly at 3.25%. This is mostly due to the fairly large drop in export value between 2009 and 2010.
Table 21 Total Exports per District Municipality
Percentage Growth Percentage (2000 - 2010) contribution of total provincial exports Ugu District municipality 10.67% 0.21% UMgungundlovu District municipality 10.63% 10.32% Uthukela District municipality 18.02% 0.87% Umzinyathi District municipality 24.57% 0.51% Amajuba District municipality 9.41% 1.23% Zululan d District municipality 40.04% 0.03% Umkhanyakude District municipality 45.51% 0.03% Uthungulu District municipality 13.90% 38.00% iLembe District municipality 3.25% 0.27% Sisonke District municipality 95.78% 0.03%
eThekwini Metropolitan Municipality 4.10% 48.50%
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Table 10 shows the percentage growth in exports per HS coded export item in iLembe along with the percentage contribution of each item to the total exports in 2010. The most significant exports that originated from iLembe were ‘vehicles, aircraft, vessels and associated transport equipment’ which contributed 34% in the 2010, as well ‘base metals and articles of base metal’ with 23% of total exports, and ‘Plastics & articles thereof, rubber &articles thereof’ with (11%). The ‘Footwear, headgear, umbrellas, sun umbrellas, walking- sticks...etc’ sector experienced a very large average annual growth rate over the period 2002 – 2010 of over 70%, with the mineral products category experiencing 23% average annual growth in exports; and exports of ‘prepared foodstuffs, beverages, spirits & vinegar, tobacco & manufactured tobacco substitutes’ growing at an
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
average annual growth rate of 22.7%. Noticeably, ‘products of chemical or allied industries’ and ‘vegetable products’ have experienced a negative growth rate of 25% and 21% respectively. These were large export sectors, particularly ‘products of chemical or allied industries’, and their decline is largely to blame for the total drop in exports in iLembe over the last year.
Table 22 Percentage Growth and Contribution of each HS Coded Export Item in iLembe
HS Code Percentag Percentag e Growth e (2000 - contributi 2010) on Live animals, animal products 2.6% 0.67% Vegetable product s -20.7% 1.86% Animal or vegetable fats & oils & their cleavage products; prepared edible fats; 11.6% 0.14% animal & vegetable waxes Prepared foodstuffs; beverages, spirits & vinegar; tobacco & manufactured 22.7% 3.48% tobacco substitutes Mineral pro ducts 23.1% 2.41% Products of the chemical or allied industries -24.7% 0.34% Plastics & articles thereof; rubber & articles thereof 10.3% 11.20% Raw hides & skins, leather, furskins & articles thereof; saddlery & harness; travel 14.8% 0.05% goods, handbags & similar containers; articles of animal gut (other than silkworm gut) Wood & articles of wood; wood charcoal; cork & articles of cork; manufactures of -6.6% 0.46% straw, of esparto or of other plaiting materials; basketware & wickerwork Pulp of wo od or of other fibrous cellulosic material; waste & scrap of paper or 4.2% 8.46% paperboard; paper & paperboard of paper or paperboard; paper & paperboard & articles thereof Textiles & textile articles -6.1% 1.88% Footwear, headgear, umbrellas, sun umbr ellas, walking -sticks, seat -sticks, whips, 70.4% 0.85% riding-crops & parts thereof; prepared feathers & articles made therewith; artificial flowers; articles of human hair Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic -18.1% 0.34% products; glass & glassware Natural or cultured pearls, precious or semi -precious stones, precious metals, 0.00% metals clad with precious metal & articles thereof; imitation jewellery; coin Base metals & articles of base metal 10.0% 22.76% Machinery & mechanical appliances; electrical equipment; parts thereof; sound 2.1% 8.47% recorders an reproducers, television image & sound recorders & reproducers, & parts & accessories of such articles Vehicles, aircraft, vessels & associated transpor t equipment 9.6% 34.10% Optical, photographic, cinematographic, measuring, checking, precision, medical 4.0% 0.12% or surgical instruments & apparatus; clocks & watches; musical instruments; parts & accessories thereof Arms & ammunition; parts & accesso ries thereof 0.00% Miscellaneous manufactured articles 15.6% 2.39% Works of art, collectors' pieces & antiques -42.8% 0.00%
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Other unclassified goods 0.00%
Special classification of original equipment components/parts for motor vehicles 0.00%
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Table 11 shows the contribution of each District Municipality to the total imports for KwaZulu-Natal and each Municipality’s average annual growth in total imports from 2000-2010. iLembe contributed 1.62% to total imports in 2010. This makes iLembe the 4 th largest contributor which is interesting considering it is the smallest District Municipality. Imports for iLembe are also growing steadily at 13.43% per year on average.
Table 23 Total imports per District Municipality
Percentage Growth Percentage (2000 - 2010) contribution of total provincial imports Ugu District municipality 16.14% 0.73% UMgungundlovu District municipality 14.99% 8.06% Uthuke la District municipality 13.13% 1.48% Umzinyathi District municipality 3.92% 0.07% Amajuba District municipality -0.21% 0.26% Zululand District municipality 10.66% 0.03% Umkhanyakude District municipality -18.60% 0.00% Uthungulu District municipality 13.62% 9.58% iLembe District municipality 13.43% 1.62% Sisonke District municipality 24.32% 0.01%
eThekwini Metropolitan Municipality 15.26% 78.16%
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Table 12 below provides further detail on this trend. It shows the breakdown of imports within iLembe by HS coded item. iLembe mostly imports items within the ‘Machinery & mechanical appliances; electrical equipment and parts thereof’ section (37% contribution) and the ‘textiles’ section (22% contribution). Imports within these two categories are also growing steadily at 11.9% and 37.8% respectively. The highest growing categories are the ‘vehicles, aircraft, vessels & associated transport equipment’ category at 67.5% and the ‘animal & vegetable fats and oils and their cleavage products’ category at 51.2%.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Table 24 Growth and Contribution of each HS Coded Import Item in iLembe
HS Code Percentag Percentag e Growth e (2000 - contributi 2010) on Live anim als, animal products -8.8% 0.00% Vegetable products 4.5% 8.00% Animal or vegetable fats & oils & their cleavage products; prepared edible fats; 51.2% 1.59% animal & vegetable waxes Prepared foodstuffs; beverages, spirits & vinegar; tobacco & manufact ured 26.3% 0.51% tobacco substitutes Mineral products -13.6% 0.22% Products of the chemical or allied industries -0.6% 1.62% Plastics & articles thereof; rubber & articles thereof 11.3% 7.55% Raw hides & skins, leather, furskins & articles thereof; s addlery & harness; travel 6.0% 0.25% goods, handbags & similar containers; articles of animal gut (other than silkworm gut) Wood & articles of wood; wood charcoal; cork & articles of cork; manufactures of 10.1% 0.90% straw, of esparto or of other plaiting materials; basketware & wickerwork Pulp of wood or of other fibrous cellulosic material; waste & scrap of paper or 3.2% 2.82% paperboard; paper & paperboard of paper or paperboard; paper & paperboard & articles thereof Textiles & textile articles 37.8 % 22.24% Footwear, headgear, umbrellas, sun umbrellas, walking -sticks, seat -sticks, whips, 35.4% 0.41% riding-crops & parts thereof; prepared feathers & articles made therewith; artificial flowers; articles of human hair Articles of stone, plaster, cemen t, asbestos, mica or similar materials; ceramic -4.9% 0.25% products; glass & glassware Natural or cultured pearls, precious or semi -precious stones, precious metals, -20.2% 0.0 0% metals clad with precious metal & articles thereof; imitation jewellery; coin Base metals & articles of base metal 22.2% 8.21% Machinery & mechanical appliances; electrical equipment; parts thereof; sound 11.9% 37. 35% recorders an reproducers, television image & sound recorders & reproducers, & parts & accessories of such articles Vehicles, aircraft, vessels & associated transport equipment 67.5% 0.97% Optical, photographic, cinematographic, measuring, checking, precision, medical 13.9% 2.22% or surgical instruments & apparatus; clocks & watches; musical instruments; parts & accessories thereof Arms & ammunition; parts & accessories thereof 0.00% Miscellaneous manufactured articles 49.3% 4.88% Works of art, collectors' pieces & antiques -12.2% 0.01% Other unclassified goods 0 0.00%
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Special classification of original equipment components/parts for motor vehicles 0 0.00%
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Table 17 gives a summary of trade in iLembe. In 2010 iLembe experienced a deficit of R947,691,888. Although these figures should be treated with caution as they are only approximates, these are large deficits and suggest iLembe’s imports far outweigh their exports.
Table 25 Gross Geographic Expenditure
Gross Geographic Expenditure (2010) = total exports (2010) – total imp orts (2010) R167,494,901 - R1,115,186,789
-R947,691,888
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Key Findings: International Trade
• Products that originate from iLembe contribute 0.27% to total provincial exports; • Growth in iLembe exports has been 3.25% per annum between 2000 – 2010 but has declined dramatically over the last year; • The most significant exports that originated from iLembe were ‘vehicles, aircraft, vessels and associated transport equipment’ which contributed 34% • iLembe contributed 1.62% to total imports and Imports for iLembe are growing steadily at 13.43% per year on average; • iLembe mostly imports items within the ‘Machinery& mechanical appliances; electrical equipment and parts thereof’ section (37% contribution) and the ‘textiles’ section (22% contribution); • In 2010 iLembe experienced a deficit of R947,691,888
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
The Informal Economy
South Africa’s informal sector is the unofficial part of the economy whereby many people are forced to eke out a meagre economic existence through lack of formal job opportunities. This sector of the economy, which evades income taxes and circumvents labour laws, now, represents 32.8% of SA’S potential workforce. According to Adcorp’s monthly employment index, during September 2011 the informal sector grew at an annual rate of 7.7% making it the fastest-growing segment of South African economic activity as it relates to individuals. More than 6.2 million people eke out a living in this sector, unprotected by labour laws and beneath the tax authorities’ radar screens, making it the second-largest sector of the labour market after officially recorded employment, which numbers 12.7 million people. In other words, the informal sector is now almost half of the size of officially recorded employment. It is just 30.2% smaller than standard employment (i.e. permanent work) and 63.5% bigger than non-standard employment (i.e. temporary and agency work). There are thought to be 2.1 million employers, each employing on average 2.9 workers, in the informal sector (Adcorp Employment Index, September 2011).
The informal sector possesses several important characteristics:
• Contracts of employment, both written and verbal, are strictly speaking absent • Employers do not make contributions to medical aids and/or pension funds • Employers do not make statutory deductions (i.e. payroll taxes such as Unemployment Insurance and Skills Development Levies) • Employers do not report or pay Pay-As-You-Earn (PAYE) to the South African Revenue Services • Employees, such as they are, do not have recourse to formal labour dispute resolution mechanisms such as the CCMA and the Labour Courts.
The data suggest that South Africa’s formal labour market is gradually disintegrating. The process of “informalization” – whereby formal jobs (i.e. where contracts of employment are present) are converted into informal jobs (where contracts of employment are absent) – has long been recognized in South Africa.
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There are several causes of the formal labour market’s disintegration. The most prominent is the influx of an estimated 1.5-3.5 million illegal migrants from neighbouring countries, notably Zimbabwe, Malawi and Mozambique, since the last population census conducted in 2001. According to the Statistician-General, whose estimates are based on the number of illegal Zimbabwean migrants who applied for official status under the Department of Home Affairs’ amnesty programme in 2010, there are no more than 350,000 Zimbabweans working and residing illegally in South Africa, which probably undercounts the reality by between 75% and 90%. The population census currently underway in 2011 will doubtless underestimate the number of illegal foreign workers in South Africa, since there is a strong incentive for illegal aliens to avoid being counted, specifically to avoid arrest, confinement and deportation. The presence of a large number of illegal migrants in the South African labour market has led to large-scale evasion of laws relating to minimum wages and basic working conditions (Adcorp Employment Index, September 2011).
Another cause, more difficult to quantify, is the effect of labour laws and regulations. Employers complain about two specific regulations, namely dismissal protections (which allow poor-performing employees to hide behind the Labour Relations Act to avoid sanction or dismissal) and collective bargaining (which is mandated by the Labour Relations Act and has the effect of driving a wedge between wage escalations and labour productivity). The collective effect of these regulations is to make employees’ unaccountable for their personal productivity and remunerated according to government strictures rather than business performance or productivity. It is predictable, in the circumstances, that a growing number of employers are opting out of the formal labour market in order to circumvent labour laws and regulations (Adcorp Employment Index, September 2011).
2nd Economy 1st Economy
BUSINESS CONTINUUM Registered Informal Unregistered Informal Formal Services Informal Trader SMMES Busines s SMMES
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
The graph below displays the distribution of formal and informally employed persons. In iLembe, about 22% of the working age population are informally employed, while approximately 78% are formally employed. Within the district, all the local municipalities display a similar trend, however with only 15% informal employment displayed in Maphumulo.
Graph 40 Formal and Informal Employment in 2010
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The informal economy in iLembe is heterogenic, ranging from average street traders and shebeen owners to child carers and domestic workers. It is often characterised by its flexibility, creativity, resilience to absorb shocks, and its ability to adapt to changing external environments. However, by its very description it falls outside the regulatory environment in which all formal businesses and their workers operate, increasing the risks faced by informal economy workers and enterprises, and reducing the support and protection these workers and enterprises can receive from government.
The largest informal economy exists in KwaDukuza. The following table describes the type of informal activities that occur in KwaDukuza and their estimated size.
Table 26 Types of Informal Activites in KwaDukuza
Types of informal Activiti es Estimated Number
Taxi and Minibus operators 200
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Tourism (B&B, Tour guides) 10
Informal Builders 500
Domestic Workers 50 000
Agriculture (urban subsistence) 60
Light industries (tailors, Dressmakers and hatters, Embroiderers and related workers, plumbers, welders) 2000
Informal technicians (shoe, watch, car, furniture, etc repairers ) 2000
Street traders Numbers
Barbers and Hairdressers 1000
Fruit sellers 2000
Craft and bead sellers 100
Cardboard collectors 40
Live chicken sellers 50
Mielie cookers 50
News paper vendors 5
Second hand clothes dealers 20
Tavern and shebeen operators 2000
Spaza shop owners 2000
Street food vendors 1000
Traditional Medicine practitioners and Muthi traders 150
Mr. Phone dealers 50
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To address the challenges that iLembe faces in the informal sector, the following vision was developed: Building a dynamic and vibrant informal sector in iLembe, with capacitated traders operating under conducive institutional and legal environments, creating sustainable jobs and contributing to economic growth.
To achieve the preceding vision, two goals were developed including: Goal one: creation of a planning, legal and institutional conducive environment for informal sector growth Goal two: developing the informal sector in iLembe
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Key Findings: International Trade
• The informal economy represents 32.8% of SA’S potential workforce. • According to Adcorp’s monthly employment index, during September 2011 the informal sector
grew at an annual rate of 7.7% making it the fastest-growing segment of South African economic
activity. More than 6.2 million people eke out a living in this sector.
• About 22% of the working age population in iLembe are informally employed, while approximately
78% are formally employed.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
SAARF Living Standard Measure
The South African Advertising Research Foundation produces their Living Standard Measure every half year. This data segments the surveyed population into different living standard groups determined by their lifestyle. Table 1 describes the different segments. Table 27 Description of SAARF Living Standard Measures
Demographics Average Media General household income per month LSM 1 Female 50+ Some High R1 493 Radio: Commercial radio; Minimal access to services school Level Achieved mainly African Language Minimal ownership of Rural: Traditional Hut Services (ALS)- Umhlobo durables, except radio sets Wenene FM, Ukhozi FM LSM 2 Female 15 – 24, 50+ R1 732 Same as above Water on plot Minimal Some High School Rural: ownership of durables, Traditional Hut except radio sets and stoves LSM 3 Female15 – 24, 35 -49Up R2 052 Same as above + TV: SABC Electricity, water on plot to some high Rural: 1 Minimal ownership of House/Cluster durables, except radio sets House/Town House and stoves LSM 4 Female 15 - 24 Matric R2 829 Same as above + TV: SABC Electricity, wat er on plot, Rural: House/Cluster 1,2, ETV flush toilet, TV sets, hi- House/Town House fi/radio set, electric hotplates, fridge LSM 5 Male 15 -24 Up to Matric R3 832 Same as above + TV: SABC Electricity, water, flush Urban 1,2,3, E.TV daily/Weekly toilet, TV sets, hi-fi/radio Newspapers, Magazines set, stove, fridge LSM 6 Female 25 -49 Up to R6 398 Radio: Wide range of Full access to services matric and higher Urban commercial & community Increased ownership of radio TV: SABC 1,2,3, e.tv durables plus motor vehicle Daily/Weekly Newspapers, Magazines Accessed internet 4 weeks Cinema & Outdoor LSM 7 Female 25+ Matric and R9 693 Same as above + TV: Mnet Full access to services higher Urban Increased ownership of durables plus motor vehicle LSM 8 Female 35+ Matric and R13 612 Same a s above + TV: DSTV Full access to services Full higher Urban ownership of durables, incl. DVD, PC and satellite dish LSM 9 Male 35+ Matric and R18 371 Same as above Same as above higher Urban LSM 10 Male 35+ Matric and R27 303 Same as above Same as above
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
higher Urban
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Table 5 on the following page shows the percentage of people within each LSM group that belong to each province. These numbers should be read with caution as they are not representative of the entire population but rather a sample group. KwaZulu-Natal contains the highest percentage of LSM 2 people (39.7%). From table 22 above we can see that this is a female headed household, aged 15-24 and 50+, with some high school level education achieved. This group of people live in huts, earn R1 732 per month, own only radios and stoves and have minimal access to services.
In fact, LSM groups 1-4 all feature highly in KZN, along with the Eastern Cape. This shows that KZN has a large amount of people with low Living Standards relative to other provinces. However, as the LSM groups increase, the Eastern Cape does not feature, whereas KZN still remains amongst the top three provinces (along with W.Cape and Gauteng). KZN is unique in this trend which shows that it has the highest level of inequality in Living Standards amongst households in the country – this provides opportunities for diversification of commercial activities. Businesses selling the same produce will not compete due to different target markets, allowing for a larger amount of economic activity.
There have been few significant changes in the release of June 2011 figures when compared to Dec 2010. Lower LSM levels are still rising in KZN relative to other provinces; some high LSM levels are also rising, however.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
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Table 28 Percentage contribution to each LSM group by province
Province (% contribution) Date No of Population W. Cape N. Ca pe Free E. Cape KwaZulu - Mpumalanga Limpopo Gauteng North Informants ('000) State Natal West LSM 1 Dec 2010 219 808 - 1.3 2.7 57.6 29.8 2.3 1.8 - 4.5 Jun 2011 200 717 1.1 1.8 56 32.8 2 0.3 6 LSM 2 Dec 2010 559 1944 0.3 2.2 1.7 34.7 39.5 4 7.4 1.6 8.7 Jun 2011 549 1934 0.2 2.3 1.9 34.3 39.7 4.4 8.5 1.9 6.9 LSM 3 Dec 2010 762 2394 0.6 2.9 4.8 25 32.4 6.5 16.9 3.3 7.5 Jun 2011 696 2225 0.5 2.7 4.9 28.2 32.1 6.8 12.3 3.9 8.6 LSM 4 Dec 2010 1818 4744 2 3.3 5.5 16.4 24.5 9.5 24 4.4 10.3 Jun 2011 1641 4450 1.8 3 6.3 16.8 25.3 9.5 22.2 3.4 11.8 LSM 5 Dec 2010 2942 5636 4.5 2.7 11.8 10.9 17.5 10.5 17.9 12.2 12.1 Jun 2011 2924 5750 4 3.1 10.4 10.5 17.4 9.4 20.7 11.9 12.7 LSM 6 Dec 2010 5228 6891 12.1 1.6 8.2 10.8 15.3 7.9 9.5 25.7 8.9 Jun 2011 5198 7128 12.6 1.6 8. 3 10.7 16.1 7.9 9.7 25.9 7.2 LSM 7 Dec 2010 3647 3621 21.4 1.2 5.6 8.6 14.8 4.9 4.6 33.9 5.1 Jun 2011 3683 3747 21.5 1 5.3 9.5 15 4.9 5.8 31.9 5.1 LSM 8 Dec 2010 3202 2830 21.3 1.4 4.6 7.5 17.1 5.8 3.5 33.1 5.5 Jun 2011 3254 2788 22.6 1.4 5.5 7.7 15. 8 5.8 3.4 32.3 5.5 LSM 9 Dec 2010 3861 3038 20.8 1.7 4.4 7.4 19.6 3.7 2.8 34.5 5.1 Jun 2011 4056 3110 20.1 2 5.1 7.3 20.3 4.1 2.6 33.3 5.1 LSM Dec 2010 2922 2114 14.8 1.7 3.9 5.1 25.8 2.2 1.8 42.1 2.5 10 Jun 2011 2959 2170 11.1 1.8 3.4 5.8 24.3 4.1 2.4 43.7 3.5
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Summary of Key Findings in Section Two
This sub-section pulls together the key findings from each of the previous sub-sections in order to provide a composite understanding of the current social and economic situation in iLembe.
Demographic Profile • Out-migration of residents from Ndwedwe and Maphumulo to areas with urban-centres such as KwaDukuza and Mandeni; • Over 50% of the population falls under the age of 24 years old, while 62.5% of the iLembe population falls within the working age bracket (15 – 64 years). • iLembe has experienced a decline in HIV prevalence of 1% per annum
Socio-Economic Indicators • Ndwedwe and Maphumulo are lagging behind the district with regards access to electricity; • Less than 28% of the district population have access to a flush or chemical toilet; • Less than 17% of households have access to water inside their dwelling;
Employment Indicators • Over 60% of the district population fall within the working age bracket (16 – 65 years); • Only 28% of the working age population are employed in iLembe, with over 63% being not economically-active; • ‘Manufacturing’; ‘wholesale and retail, catering and accommodation’; ‘finance, insurance, real estate and business services’; and ‘community, social and personal services’ contribute almost 70% to those formally employed; • The location quotient for iLembe is less than 1 for all industries except Agriculture and Manufacturing which shows that these are areas of comparative advantage. • The shift-share analysis for iLembe further exacerbates that iLembe enjoys a comparative advantage in Agriculture and Manufacturing.
Production, Expenditure and Investment • ‘Manufacturing’ accounted for over 29% of total GGP in iLembe, with ‘finance, insurance, real estate, and business services’ accounting for 20%, and ‘wholesale, retail, catering and accommodation’ accounting for 15%. • 63.5% of total income is remuneration, while the remaining 36.5% is unearned, government grants.
iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
• ‘Durable goods’ contribute 10% to total expenditure, while ‘semi-durable goods’ contribute 13%, ‘non- durable goods’ contribute 35%, and ‘services’ contribute 41%; • ‘Clothing and footwear’, ‘food, beverages and tobacco’, ‘rent’, ‘medical services’, and ‘transport and communications’ are the largest expenditure categories within the district; • Over 81% of domestic fixed investment was into ‘building and construction’ and ‘machinery and other equipment; and • The majority of fixed investment was into the ‘Manufacturing’, transport, storage and communications’, and finance, insurance, real estate, and business services’ sectors.
International Trade • Products that originate from iLembe contribute 0.27% to total provincial exports; • Growth in iLembe exports has been 3.25% per annum between 2000 – 2010 but has declined dramatically over the last year; • The most significant exports that originated from iLembe were ‘vehicles, aircraft, vessels and associated transport equipment’ which contributed 34% • iLembe contributed 1.62% to total imports and Imports for iLembe are growing steadily at 13.43% per year on average; • iLembe mostly imports items within the ‘Machinery& mechanical appliances; electrical equipment and parts thereof’ section (37% contribution) and the ‘textiles’ section (22% contribution); • In 2010 iLembe experienced a deficit of R947,691,888
The Informal Economy • The informal economy represents 32.8% of SA’S potential workforce. • According to Adcorp’s monthly employment index, during September 2011 the informal sector grew at an annual rate of 7.7% making it the fastest-growing segment of South African economic activity. More than 6.2 million people eke out a living in this sector. • About 22% of the working age population in iLembe are informally employed, while approximately 78% are formally employed.
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
ANNEXURE ASSUMPTIONS AND COMPREHENSIVE ECONOMIC INDICATORS
The following assumptions were used during this report:
• Most data is quoted as a percentage of the total in order to easily compare across varying nominal values for the province, district and local municipalities. • In the few cases where data was only available up to 2008 or 2009, a growth rate was calculated over ten years and used to extrapolate data up to 2010.
The tables below display both the nominal and percentage contribution values for each of the indicators presented in the report.
A1.1 Population and Households
Population Households Number % growth Number % growth iLembe 562,815 0.09% 134,275 0.67% Mandeni Local Municipality 131,571 0.46% 36,483 1.74% KwaDukuza Local Municipality 171,984 1.11% 46,774 1.12% Ndwedwe Local Municipality 144,568 -0.87% 29,543 -0.40% Maphumulo Local Municipality 114,693 -0.48% 21,476 -0.40%
A1.2 Racial Profile
KwaDukuza Maphumulo Mandeni Local Ndwedwe Local iLembe Local Local Municipality Municipality Municipality Municipality Black 509256 123231 129504 141986 114535 Coloured 2569 858 1481 159 71 Asian 38909 5597 31790 1470 52 White 12082 1885 9209 952 34 KwaDukuza Maphumulo Percentage Mandeni Local Ndwedwe Local iLembe Local Local Contribution Municipality Municipality Municipality Municipality Black 90.5% 93.7% 75.3% 98.2% 99.9% Coloured 0.5% 0.7% 0.9% 0.1% 0.1% Asian 6.9% 4.3% 18.5% 1.0% 0.0% White 2.1% 1.4% 5.4% 0.7% 0.0%
A1.3 HIV and AIDS
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
KwaDukuza Ndwedwe Maphumulo Mandeni Local Number iLembe Local Local Local Municipality Municipality Municipality Municipality 562815 131571 171984 144568 114693 Population 94690 25406 27406 24865 17013 HIV Positive 7161 1889 2032 1911 1329 AIDS Deaths
KwaDukuza Ndwedwe Maphumulo Mandeni Local Percentage Contribution iLembe Local Local Local Municipality Municipality Municipality Municipality 16.8% 19.3% 15.9% 17.2% 14.8% HIV Positive 1.3% 1.4% 1.2% 1.3% 1.2% AIDS Deaths
A1.4 Gender Profile
KwaDukuza Ndwedwe Maphumulo Mandeni Local Number iLembe Local Local Local Municipality Municipality Municipality Municipality 272104 62415 85306 73063 51320 Male 290711 69155 86678 71505 63373 Female 562,815 131,571 171,984 144,568 11 4,693 Total
KwaDukuza Ndwedwe Maphumulo Mandeni Local Percentage Contribution iLembe Local Local Local Municipality Municipality Municipality Municipality 48.3% 47.4% 49.6% 50.5% 44.7% Male 51.7% 52.6% 50.4% 49.5% 55.3% Female
A1.5 Age Profile
KwaDukuza Maphumulo Mandeni Local Ndwedwe Local Number iLembe Local Local Municipality Municipality Municipality Municipality 60,373 13,167 17,834 14,879 14,494 00-04 Year(s) 62,230 13,354 17,438 16,357 15,081 05-09 Year(s) 64,190 14,433 15,0 83 17,493 17,181 10-14 Year(s) 65,198 14,289 17,308 18,020 15,581 15-19 Year(s) 59,603 14,912 19,977 14,570 10,144 20-24 Year(s) 53,469 14,853 17,074 13,647 7,895 25-29 Year(s)
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
KwaDukuza Maphumulo Mandeni Local Ndwedwe Local Number iLembe Local Local Municipality Municipality Municipality Municipality 43,686 12,686 15,588 9,685 5,726 30-34 Year(s) 33,308 9,151 11,349 7,759 5,049 35-39 Year(s) 22,708 5,638 8,209 5,531 3,330 40-44 Year(s) 21,262 4,407 8,062 5,536 3,257 45-49 Year(s) 19,700 4,004 6,352 5,359 3,985 50-54 Year(s) 17,351 3,591 5,617 4,073 4,071 55-59 Year(s) 14,231 2,807 4,994 3,798 2,633 60-64 Year(s) 10,053 1,986 2,704 3,088 2,275 65-69 Year(s) 7,882 1,099 1,970 2,620 2,193 70-74 Year(s) 4,385 836 1,219 1,240 1,090 75-79 Year(s) 3,185 356 1,207 913 708 80+ Year(s) 562,815 131,571 171,984 144,568 114,693 Total KwaDukuza Maphumulo Percentage Mandeni Local Ndwedwe Local iLembe Local Local Contribution Municipality Municipality Municipality Municipality 10.7% 10.0% 10.4% 10.3% 12.6% 00-04 Year(s) 11.1% 10.1% 10.1% 11.3% 13.1% 05-09 Year(s) 11.4% 11.0% 8.8% 12.1% 15.0% 10-14 Year(s) 11.6% 10.9% 10.1% 12. 5% 13.6% 15-19 Year(s) 10.6% 11.3% 11.6% 10.1% 8.8% 20-24 Year(s) 9.5% 11.3% 9.9% 9.4% 6.9% 25-29 Year(s) 7.8% 9.6% 9.1% 6.7% 5.0% 30-34 Year(s) 5.9% 7.0% 6.6% 5.4% 4.4% 35-39 Year(s) 4.0% 4.3% 4.8% 3.8% 2.9% 40-44 Year(s) 3.8% 3.3% 4.7% 3.8% 2.8% 45-49 Year(s) 3.5% 3.0% 3.7% 3.7% 3.5% 50-54 Year(s) 3.1% 2.7% 3.3% 2.8% 3.5% 55-59 Year(s) 2.5% 2.1% 2.9% 2.6% 2.3% 60-64 Year(s) 1.8% 1.5% 1.6% 2.1% 2.0% 65-69 Year(s) 1.4% 0.8% 1.1% 1.8% 1.9% 70-74 Year(s) 0.8% 0.6% 0.7% 0.9% 1.0% 75-79 Year(s) 0.6% 0.3% 0.7% 0.6% 0.6% 80+ Year(s)
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
A1.6 Energy used for Lighting
KwaDukuza Ndwedwe Maphumulo Mandeni Local Number iLembe Local Local Local Municipality Municipality Municipality Municipality 2,650 228 341 410 1,671 Solar/other/unspecified 84,717 28,458 40, 432 8,354 7,473 Electricity 598 187 122 196 93 Gas 2,704 512 818 1,131 243 Paraffin 43,606 7,099 5,060 19,451 11,997 Candles 134,275 36,483 46,774 29,543 21,476 Total
KwaDukuza Ndwedwe Maphumulo Mandeni Local Percentage contribution iLembe Local Local Local Municipality Municipality Municipality Municipality 2.0% 0.6% 0.7% 1.4% 7.8% Solar/other/unspecified 63.1% 78.0% 86.4% 28.3% 34.8% Electricity 0.4% 0.5% 0.3% 0.7% 0.4% Gas 2.0% 1.4% 1.7% 3.8% 1.1% Paraffin 32.5% 19.5% 10.8% 65.8% 55.9% Candles
A1.7 Type of Toilet
KwaDukuza Maphumulo Mandeni Local Ndwedwe Local Number iLembe Local Local Municipality Municipality Municipality Municipality Flush or chemical toilet 37,225 12,784 18,125 4,742 1,574
Pit latrine 73,162 20,477 20,337 17,173 15,174
Bucket latrine 1,380 213 611 318 237
None of the above 21,424 2,716 7,219 7,116 4,374
Unspecified/Dummy 1,085 293 481 194 117
Total 134,275 36,483 46,774 29,543 21,476
KwaDukuza Maphumulo Mandeni Local Ndwedwe Local Percentage iLembe Local Local Municipality Municipality Municipality Municipality Flush or chemical toilet 27.7% 35.0% 38.8% 16.0% 7.3%
Pit latrine 54.5% 56.1% 43.5% 58.1% 70.7%
Bucket latrine 1.0% 0.6% 1.3% 1.1% 1.1%
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
KwaDukuza Maphumulo Mandeni Local Ndwedwe Local Percentage iLembe Local Local Municipality Municipality Municipality Municipality None of the above 16.0% 7.4% 15.4% 24.1% 20.4%
Unspecified/Dummy 0.8% 0.8% 1.0% 0.7% 0.5%
A1.8 Water
Mandeni KwaDukuza Ndwedwe Maphumulo Number iLembe Local Local Local Local Municipality Municipality Municipality Municipality Piped water inside dwelling 22,713 7,061 12,995 1,510 1,147
Piped water inside yard 29,136 10,857 8,310 8,303 1,666 Piped water on community stand: distance less than 200m. 28,672 7,685 15,266 3,266 2,454 from dwelling Piped water on community stand: distance greater than 14,433 4,596 6,182 2,225 1,430 200m. from dwell Borehole/rain-water tank/well 8,416 2,771 799 2,629 2,217
Dam/river/stream/spring 28,233 3,202 1,553 11,151 12,326 Water-carrier/tanker/Water 1,073 97 759 170 48 vendor Other/Unspecified/Dummy 1,599 214 910 288 187
Total 134,275 36,483 46,774 29,543 21,476
Mandeni KwaDukuza Ndwedwe Maphumulo Percentage Contribution iLembe Local Local Local Local Municipality Municipality Municipality Municipality Piped water inside dwelling 16.9% 19.4% 27.8% 5.1% 5.3%
Piped water inside yard 21.7% 29.8% 17.8% 28.1% 7.8% Piped water on community stand: distance less than 200m. 21.4% 21.1% 32.6% 11.1% 11.4% from dwelling Piped water on community stand: distance greater than 10.7% 12.6% 13.2% 7.5% 6.7% 200m. from dwell Borehole/rain-water tank/well 6.3% 7.6% 1.7% 8.9% 10.3%
Dam/river/stream/spring 21.0% 8.8% 3.3% 37.7% 57.4% Water-carrier/tanker/Water 0.8% 0.3% 1.6% 0.6% 0.2% vendor
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Mandeni KwaDukuza Ndwedwe Maphumulo Percentage Contribution iLembe Local Local Local Local Municipality Municipality Municipality Municipality Other/Unspecified/Dummy 1.2% 0.6% 1.9% 1.0% 0.9%
A1.9 Type of Dwelling
Mandeni KwaDukuza Ndwedwe Maphumulo Number iLembe Local Local Local Local Municipality Municipality Municipality Municipality House or brick structure on a 50,975 15,327 23,371 7,653 4,624 separate stand or yard Traditional dwelling/hut/structure 43,419 8,716 4,903 14,839 14,960 made of traditional materials Flat in a block of flats 6,810 1,980 3,696 677 456 Town/cluster/semi-detached 1,425 179 920 201 125 house (simplex, duplex or triplex) House/flat/room, in backyard 2,631 1,221 747 504 160 Informal dwelling/shack, in 2,546 499 1,602 99 346 backyard Informal dwelling/shack, NOT in backyard, e.g. in an 12,404 5,348 5,863 907 287 informal/squatter settlement Room/flatlet not in backyard but 2,735 1,710 595 174 257 on a shared property Other/unspecified/NA 11,331 1,505 5,077 4,488 261 50,975 15,327 23,371 7,653 4,62 4 Total
Mandeni KwaDukuza Ndwedwe Maphumulo Percentage Contribution iLembe Local Local Local Local Municipality Municipality Municipality Municipality House or brick structure on a 37.96% 42.01% 49.97% 25.90% 21.53% separate stand or yard Traditional dwelling/hut/structure 32.34% 23.89% 10.48% 50.23% 69.66% made of traditional materials Flat in a block of flats 5.07% 5.43% 7.90% 2.29% 2.13% Town/cluster/semi-detached 1.06% 0.49% 1.97% 0.68% 0.58% house (simplex, duplex or triplex) House/flat/room, in backyard 1.96% 3.35% 1.60% 1.71% 0.74% Informal dwelling/shack, in 1.90% 1.37% 3.43% 0.34% 1.61% backyard Informal dwelling/shack, NOT in backyard, e.g. in an 9.24% 14.66% 12.53% 3.07% 1.33% informal/squatter settlement
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Mandeni KwaDukuza Ndwedwe Maphumulo Percentage Contribution iLembe Local Local Local Local Municipality Municipality Municipality Municipality Room/flatlet not in backyard but 2.04% 4.69% 1.27% 0.59% 1.20% on a shared property Other/unspecified/NA 8.44% 4.12% 10.85% 15.19% 1.22%
A1.10 Education Level
KwaDukuza Ndwedwe Maphumulo Mandeni Local Number iLembe Local Local Local Municipality Municipality Municipality Municipality 79,311 14,329 18,678 24,127 22,177 Grade 0/No schooling 22,556 4,956 6,165 6,299 5,136 Grade 1/Sub A 25,281 5,872 6,148 7,208 6,053 Grade 2/Sub B 22,689 4,113 5,797 7,385 5,394 Grade 3/Standard 1 24,381 5,278 7,422 6,854 4,827 Grade 4/Standard 2 27,979 6,356 7,451 8,378 5,794 Grade 5/Standard 3 26,553 5,766 8,060 7,347 5,380 Grade 6/Standard 4 31,877 6,480 11,431 7,180 6,786 Grade 7/Standard 5 34,840 8,854 10,336 8,704 6,946 Grade 8/Standard 6/Form 1 37,352 9,299 10,936 10,516 6,601 Grade 9/Standard 7/Form 2 Grade 10/Standard 8/Form 37,083 10,120 12,552 9,015 5,396 3/NTC1 Grade 11/Standard 9/Form 51,475 16,335 12,813 13,923 8,403 4/NTC11 Grade 12/Standard 10/Form 51,319 15,192 21,022 7,975 7,131 5/Matric/NTC111 6,160 1,112 3,059 1,360 628 Less than matric & certif/dip 3,171 655 1,328 641 548 Certificate with Grade 12 5,779 783 3,572 821 602 Diploma with Grade 12 3,184 257 2,223 507 197 Bachelor's Degree 1,860 377 829 241 413 Bachelor's Degree and Diploma 978 287 408 202 82 Honours degree Higher Degree (Master's, 698 73 387 100 139 Doctorate) 68,289 15,078 21,366 15,786 16,058 Other/Unspecified/NA 562,814 131,571 171,984 144,568 114,692 Total
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
KwaDukuza Ndwedwe Maphumulo Mandeni Local Percentage Contribution iLembe Local Local Local Municipality Municipality Municipality Municipality 14.092% 10.9% 10.9% 16.7% 19.3% Grade 0/No schooling 4.0% 3.8% 3.6% 4.4% 4.5% Grade 1/Sub A 4.5% 4.5% 3.6% 5.0% 5.3% Grade 2/Sub B 4.0% 3.1% 3.4% 5.1% 4.7% Grade 3/Standard 1 4.3% 4.0% 4.3% 4.7% 4.2% Grade 4/Standard 2 5.0% 4.8% 4.3% 5.8% 5.1% Grade 5/Standard 3 4.7% 4.4% 4.7% 5.1% 4.7% Grade 6/Standard 4 5.7% 4.9% 6.6% 5.0% 5.9% Grade 7/Standard 5 6.2% 6.7% 6.0% 6.0% 6.1% Grade 8/Standard 6/Form 1 6.6% 7.1% 6.4% 7.3 % 5.8% Grade 9/Standard 7/Form 2 Grade 10/Standard 8/Form 6.6% 7.7% 7.3% 6.2% 4.7% 3/NTC1 Grade 11/Standard 9/Form 9.1% 12.4% 7.5% 9.6% 7.3% 4/NTC11 Grade 12/Standard 10/Form 9.1% 11.5% 12.2% 5.5% 6.2% 5/Matric/NTC111 1.1% 0.8% 1.8% 0.9% 0.5% Less than matric & certif/dip 0.6% 0.5% 0.8% 0.4% 0.5% Certificate with Grade 12 1.0% 0.6% 2.1% 0.6% 0.5% Diploma with Grade 12 0.6% 0.2% 1.3% 0.4% 0.2% Bachelor's Degree 0.3% 0.3% 0.5% 0.2% 0.4% Bachelor's Degree and Diploma 0.2% 0.2% 0.2% 0.1% 0.1% Honours degree Higher Degree (Master's, 0.1% 0.1% 0.2% 0.1% 0.1% Doctorate) 12.1% 11.5% 12.4% 10.9% 14.0% Other/Unspecified/NA
A1.11 Employment and Unemployment
KwaDukuza Ndwedwe Maphumulo Mandeni Local Number iLembe Local Local Local Municipality Municipality Municipality Municipality Population - Working age (16 - 350,591 86,416 116,335 87,349 61,759 65 years old) Employed - Formal and 99,784 28,032 47,471 16,938 7,463 informal Unemployed 28,783 10,644 9,093 7,359 2,039
Not economically active 222,025 47,741 59,771 63,052 52,258
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
KwaDukuza Ndwedwe Maphumulo Mandeni Local Percentage Contribution iLembe Local Local Local Municipality Municipality Municipality Municipality Population - Working age (16 - 62.7% 65.9% 67.3% 61.5% 54.4% 65 years old) Employed - Formal and 28.5% 32.4% 40.8% 19.4% 12.1% informal Unemployed 8.2% 12.3% 7.8% 8.4% 3.3%
Not economically active 63.3% 55.2% 51.4% 72.2% 84.6%
A1.12 Employment by type and skill level
KwaDukuza Ndwedwe Maphumulo Mandeni Local iLembe Local Local Local Municipality Number Municipality Municipality Municipality Employed - Formal 78,293 21,998 36,765 13,329 6,326
Employed - Informal 21,672 6,145 10,764 3,643 1,142 Employed - Formal - 8,860 2,946 3,756 1,359 813 Highly skilled Employed - Formal - 31,711 10,078 14,000 5,065 2,628 Skilled Employed - Formal - Semi- 37,723 8,974 19,009 6,905 2,885 and unskilled Employed Total 99,502 27,954 47,192 16,913 7,512
KwaDukuza Ndwedwe Maphumulo Mandeni Local iLembe Local Local Local Municipality Percentage Contribution Municipality Municipality Municipality Formally Employed 78.22% 78.02% 77.19% 78.46% 84.80%
Informally Employed 21.78% 21.98% 22.81% 21.54% 15.20%
KwaDukuza Ndwedwe Maphumulo Mandeni Local iLembe Local Local Local Municipality Percentage Contribution Municipality Municipality Municipality Highly Skilled 11.3% 13.4% 10.2% 10.2% 12.8%
Skilled 40.5% 45.8% 38.1% 38.0% 41.5%
Semi and Unskilled 48.2% 40.8% 51.7% 51.8% 45.6%
A1.13 Employment by Industry
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Mandeni KwaDukuza Ndwedwe Maphumulo Number iLembe Local Local Local Local Municipality Municipality Municipality Municipality Agriculture, forestry and fishing 9,649 1,025 4,782 3,461 417
Mining and quarrying 525 257 186 74 11
Manufacturing 17,017 7,682 7,502 1,583 300
Electricity, gas and water 112 8 37 66 6
Construction 6,527 601 3,874 1,891 225 Wholesale and retail trade, 22,285 7,371 11,271 3,348 426 catering and accommodation Transport, storage and 3,308 851 1,232 503 759 communication Finance, insurance, real estate 13,764 7,042 5,320 1,104 587 and business services Community, social and personal 17,428 2,575 9,882 2,580 2,450 services General government 10,755 1,596 4,104 2,707 2,390
Total 101,369 29,008 48,189 17,318 7,571
Mandeni KwaDukuza Ndwedwe Maphumulo Percentage Contribution iLembe Local Local Local Local Municipality Municipality Municipality Municipality Agriculture, forestry and fishing 9.5% 3.5% 9.9% 20.0% 5.5%
Mining and quarrying 0.5% 0.9% 0.4% 0.4% 0.2%
Manufacturing 16.8% 26.5% 15.6% 9.1% 4.0%
Electricity, gas and water 0.1% 0.0% 0.1% 0.4% 0.1%
Construction 6.4% 2.1% 8.0% 10.9% 3.0% Wholesale and retail trade, 22.0% 25.4% 23.4% 19.3% 5.6% catering and accommodation Transport, storage and 3.3% 2.9% 2.6% 2.9% 10.0% communication Finance, insurance, real estate 13.6% 24.3% 11.0% 6.4% 7.8% and business services Community, social and personal 17.2% 8.9% 20.5% 14.9% 32.4% services General government 10.6% 5.5% 8.5% 15.6% 31.6%
A1.14 Gross Geographic Product by Industry
Mandeni KwaDukuza Ndwedwe Maphumulo Rand Millions iLembe Local Local Local Local Municipality Municipality Municipality Municipality Agriculture, forestry and fishing 1008.02 115.95 508.61 343.52 39.93
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Mining and quarrying 84.92 38.85 31.94 12.37 1.76
Manufacturing 2987.22 124 5.16 1411.93 276.08 54.06
Electricity, gas and water 95.15 8.69 37.93 42.86 5.67
Construction 290.15 30.28 167.63 82.66 9.58 Wholesale and retail trade, 1519.18 472.46 803.19 212.59 30.93 catering and accommodation Transport, storage and 737.92 164.74 330.33 96.49 146.37 communication Finance, insurance, real estate 2032.69 917.27 897.10 152.52 65.80 and business services Community, social and personal 520.67 69.48 252.39 70.71 128.09 services General government 965.41 133.82 435.34 212.86 183.40
Total 10,241 3,197 4,876 1,503 666
Mandeni KwaDukuza Ndwedwe Maphumulo Percentage Contribution iLembe Local Local Local Local Municipality Municipality Municipality Municipality Agriculture, forestry and fishing 9.8% 3.6% 10.4% 22.9% 6.0%
Mining and quarrying 0.8% 1.2% 0.7% 0.8% 0.3%
Manufacturing 29.2% 39.0% 29.0% 18.4% 8.1%
Electricity, gas and water 0.9% 0.3% 0.8% 2.9% 0.9%
Construction 2.8% 0.9% 3.4% 5.5% 1.4% Wholesale and retail trade, 14.8% 14.8% 16.5% 14.1% 4.6% catering and accommodation Transport, storage and 7.2% 5.2% 6.8% 6.4% 22.0% communication Finance, insurance, real estate 19.8% 28.7% 18.4% 10.1% 9.9% and business services Community, social and personal 5.1% 2.2% 5.2% 4.7% 19.2% services General government 9.4% 4.2% 8.9% 14.2% 27.6%
A1.15 Income and Expenditure
KwaDukuza Maphumulo Mandeni Local Ndwedwe Local Rand Millions iLembe Local Local Municipality Municipality Municipality Municipality Total Income 9,114 2,950 3,683 1,430 1,051
Remuneration 5,787 1,832 2,467 869 618
Unearned 3,327 1,118 1,216 561 432
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Income Total Expenditure 8,783 2,846 3,678 1,301 959
KwaDukuza Maphumulo Percentage Mandeni Local Ndwedwe Local iLembe Local Local Contribution Municipality Municipality Municipality Municipality Total Income 100.0% 100.0% 100.0% 100.0% 100.0%
Remuneration 63.5% 62.1% 67.0% 60.8% 58.9% Unearned 36.5% 37.9% 33.0% 39.2% 41.1% Income Total Expenditure 96.38% 96.47% 99.84% 91.01% 91.27%
A1.16 Expenditure by Category
KwaDukuza Maphumulo Rand Millions (2nd Mandeni Local Ndwedwe Local iLembe Local Local quarter) Municipality Municipality Municipality Municipality Durable Goods 902 284 375 137 107 Semi-Durable 1,148 397 423 178 151 Goods Non-Durable 3,087 1,040 1,172 519 357 Goods Services 3,599 1,115 1,681 461 342 8,737 2,835 3,651 1,295 956 Total
KwaDukuza Maphumulo Percentage Mandeni Local Ndwedwe Local iLembe Local Local Contribution Municipality Municipality Municipality Municipality Durable Goods 10.3% 10.0% 10.3% 10.6% 11.2% Semi-Durable 13.1% 14.0% 11.6% 13.7% 15.8% Goods Non-Durable 35.3% 36.7% 32.1% 40.1% 37.3% Goods Services 41.2% 39.3% 46.0% 35.6% 35.7%
A1.17 Expenditure by sub-category
Mandeni KwaDukuza Ndwedwe Maphumulo Rand Millions (2nd quarter) iLembe Local Local Local Local Municipality Municipality Municipality Municipality Furniture, household 212 70 77 35 30 Durable appliances, etc Goods Personal transport 419 131 167 68 52 equipment
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Mandeni KwaDukuza Ndwedwe Maphumulo Rand Millions (2nd quarter) iLembe Local Local Local Local Municipality Municipality Municipality Municipality Recreational and 207 62 104 23 18 entertainment goods Other durable goods 66 21 26 10 8
Clothing and footwear 732 263 247 118 104 Household textiles, 170 58 60 28 24 furnishings, glassware, etc Semi- Motor car tyres, parts and 113 36 45 18 14 Durable accessories Recreational and 95 28 49 11 7 entertainment goods Miscellaneous goods 39 12 22 3 2 Food, beverages and 2,061 694 794 343 230 tobacco Household fuel and power 269 101 73 55 40 Non- Household consumer goods 409 142 156 63 47 Durable Medical and pharmaceutical 116 30 60 15 10 products Petroleum products 232 72 88 42 30
Rent 840 249 447 91 52 Household services, 221 72 93 33 23 including domestic servants Medical services 597 191 271 75 60 Services Transport and 818 255 394 95 75 communication services Recreational, entertainment and 378 124 153 55 47 educational services Miscellaneous services 744 225 322 111 86
Mandeni KwaDukuza Ndwedwe Maphumulo Percentage Contribution iLembe Local Local Local Local Municipality Municipality Municipality Municipality Furniture, household 2.42% 2.47% 2.11% 2.71% 3.09% appliances, etc Personal transport 4.79% 4.63% 4.59% 5.27% 5.41% Durable equipment Goods Recreational and 2.36% 2.18% 2.85% 1.78% 1.85% entertainment goods 0.75% 0.73% 0.72% 0.81% 0.86% Other durable goods 8.38% 9.28% 6.76% 9.13% 10.86% Clothing and footwear Semi- Household textiles, 1.95% 2.06% 1.64% 2.18% 2.46% Durable furnishings, glassware, etc Motor car tyres, parts and 1.29% 1.27% 1.23% 1.39% 1.43% accessories
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Mandeni KwaDukuza Ndwedwe Maphumulo Percentage Contribution iLembe Local Local Local Local Municipality Municipality Municipality Municipality Recreational and 1.08% 0.97% 1.35% 0.81% 0.77% entertainment goods 0.45% 0.42% 0.61% 0.22% 0.24% Miscellaneous goods Food, beverages and 23.59% 24.48% 21.75% 26.49% 24.06% tobacco 3.08% 3.57% 2.01% 4.26% 4.14% Household fuel and power Non- 4.68% 5.01% 4.28% 4.87% 4.96% Durable Household consumer goods Medical and pharmaceutical 1.33% 1.07% 1.65% 1.19% 1.04% products 2.65% 2.55% 2.41% 3.28% 3.09% Petroleum products 9.61% 8.79% 12.25% 7.06% 5.42% Rent Household services, 2.53% 2.54% 2.55% 2.55% 2.41% including domestic servants 6.84% 6.7 2% 7.43% 5.83% 6.26% Medical services Services Transport and 9.37% 8.98% 10.80% 7.33% 7.81% communication services Recreational, entertainment and 4.33% 4.37% 4.18% 4.28% 4.87% educational services 8.51% 7.92% 8.83% 8.60% 8.97% Miscellaneous services
A1.18 Domestic Fixed Capital Investment by Investment Type
KwaDukuza Ndwedwe Maphumulo Rand Millions (2nd st Mandeni Local iLembe Local Local Local quarter) Municipality Municipality Municipality Municipality Buildings and 554 135 267 115 36 construction works Machinery and other 838 289 404 107 38 equipment Transport equipment 283 76 133 42 32
Transfer costs 27 16 8 2 1
Total 554 135 267 115 36
KwaDukuza Ndwedwe Maphumulo Mandeni Local Percentage Contribution iLembe Local Local Local Municipality Municipality Municipality Municipality Buildings and 32.6% 26.2% 32.9% 43.2% 34.0% construction works Machinery and other 49.2% 55.9% 49.8% 40.2% 35.3% equipment
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
KwaDukuza Ndwedwe Maphumulo Mandeni Local Percentage Contribution iLembe Local Local Local Municipality Municipality Municipality Municipality Transport equipment 16.6% 14.7% 16.4% 15.8% 30.0%
Transfer costs 1.6% 3.2% 0.9% 0.8% 0.7%
A1.19 Domestic Fixed Capital Investment by Industry
Mandeni KwaDukuza Ndwedwe Maphumulo Rand Millions (1 st quarter) iLembe Local Local Local Local Municipality Municipality Municipality Municipality Agriculture, forestry and fishing 183.0 32.0 94.7 50.3 5.9
Mining and quarrying 28.8 15.6 7.3 4.8 1.2
Manufacturing 502.9 211.7 240.7 41.6 8.8
Electricity, gas and water 148.7 35.1 75.4 31.8 6.3
Construction 34.5 3.6 19.9 9.8 1.2 Wholesale and retail trade, 148.9 43.6 79.9 21.3 4.1 catering and accommodation Transport, storage and 284.8 62.6 127.3 48.3 46.6 communication Finance, insurance, real estate 233.4 84.3 114.1 26.8 8.2 and business services Community, social and personal 18.5 2.7 7.1 2.6 6.0 services General government 118.4 25.0 44.8 29.5 19.1
Total 1,701.8 516.3 811.3 266.8 107.5
Mandeni KwaDukuza Ndwedwe Maphumulo Percentage Contribution iLembe Local Local Local Local Municipality Municipality Municipality Municipality Agriculture, forestry and fishing 10.8% 6.2% 11.7% 18.8% 5.5%
Mining and quarrying 1.7% 3.0% 0.9% 1.8% 1.1%
Manufacturing 29.6% 41.0% 29.7% 15.6% 8.2%
Electricity, gas and water 8.7% 6.8% 9.3% 11.9% 5.9%
Construction 2.0% 0.7% 2.5% 3.7% 1.1% Wholesale and retail trade, 8.8% 8.5% 9.9% 8.0% 3.8% catering and accommodation Transport, storage and 16.7% 12.1% 15.7% 18.1% 43.4% communication Finance, insurance, real estate 13.7% 16.3% 14.1% 10.0% 7.6% and business services Community, social and personal 1.1% 0.5% 0.9% 1.0% 5.6% services General government 7.0% 4.8% 5.5% 11. 1% 17.8%
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
A1.20 Building Plans KwaDukuza
Approvals Submissions Completions Total Area Total est. Total Area Total est. Total Area Total est. no of (m2) value no of (m2) value no of (m2) value plans plans plans January 2010 90 12078 93842500 55 13635 220779500 46 19495 129497900 0 February 2010 96 46786 321615230 70 4385 22670000 25 19352 128306875 March 2010 89 16707 116731000 95 18866 115951500 16 4789 26816500 April 2010 112 18266 124816500 84 9813 118196500 29 16291 108908500 May 2010 89 15242 11 4903500 128 12347 183075000 40 51077 60990200 4 5 June 2010 86 12693 104840000 113 14821 102759000 40 14894 61089900 July 2010 117 16673 125744050 114 19639 133149600 21 11944 93582500 August 2010 87 18745 146161800 95 35703 222819239 28 12674 78991500 September 161 31303 251041000 101 33291 268594000 21 6970 35691900 2010 October 2010 74 6686 56310700 65 11256 21696590 28 5064 40151500 November 67 13126 93724300 130 18992 109294200 20 5005 33298300 2010 December 48 3984 29435700 57 12631 9601260 0 46 14209 87521400 2010 January 2011 98 34696 226678500 57 7158 57607700 20 6012 36864000 February 2011 59 10,730 20,321,627 48 12,274 88,310,500 29 10,132 53,595,200 March 2011 83 10,115 80,806,900 79 21,325 201,871,40 37 11,855 70,215,327 0 April 2011 70 11,278 92,231,400 59 10,654 85,104,700 37 10,895 72,623,600 May 2011 53 7,972 70,088,600 58 19,881 149,547,20 24 8,267 56,281,000 0 June 2011 50 48,530 347,642,10 106 36,649 292,644,80 26 41,263 293,105,30 0 0 0
A1.21 New Service Connections KwaDukuza
Single Three Maximum Total Total Water Phase Phase Demand Electricity Connections Connections
Jan-March (Q1) 2010 56 21 3 80 160 April-June (Q2) 2010 86 30 4 120 340 July-Sept (Q3) 2010 72 19 2 93 144 Oct-Dec (Q4) 2010 223 16 1 240 142 Jan-March (Q1) 2011 519 10 1 530 207 April-June (Q2) 2011 605 14 2 621 180 July 2011 277 5 1 283 August 2011 33 10 0 43 September 2011 (Q3) 17 11 1 29 81
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
A1.22 Airport Passenger Movements
King Shaka OR Tambo Cape Town Richards Bay International International International Jan-10 340,474 1,379,351 652,777 8,045 Feb-10 333,138 1,294,225 641,521 8,093 Mar-10 408,244 1,541,563 763,347 8,122 Apr-10 398,248 1,471,710 671,799 8,177 May-10 385,712 1,415,752 596,701 8,195 Jun-10 390,958 1,606,304 634,907 8,219 Jul-10 396,342 1,571,751 640,722 8,236 Aug-10 405,934 1,606,086 636,716 8,249 Sep-10 414,797 1,605,985 678,168 8,269 Oct-10 429,150 1,680,079 713,713 8,288 Nov-10 406,454 1,540,792 714,598 8,299 Dec-10 410,535 1,600,939 676,783 8,357 Jan-11 397,781 1,5 07,654 689,035 5,273 Feb-11 376,166 1,373,190 687,458 6,371 Mar-11 423,680 1,665,879 773,929 7,203 Apr-11 422,985 1,590,663 708,336 May-11 405,906 1,516,484 615,991
A1.23 Port Movements
Richards Bay Durban Total Cargo Gross Gross Total Total Cargo Total Handled Tonnage of Tonnage of Number Handled (metric Number of (metric Vessels Vessels of Vessels tonnes, millions) Vessels tonnes,millions) (millions) (millions) Jan-10 8,359 154 5,182 5,491 154 5,182 Feb-10 5,600 146 4,842 7,040 146 4,842 Mar-10 7,301 163 5,167 5,658 330 9,527 Apr-10 5,336 163 5,217 5,419 356 9,866 May-10 6,601 5,380 372 9,665 Jun-10 5,877 6,803 432 11,825
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iLembe District Municipality – Quarterly Economic Indicators and Intelligence Report: 3rd Quarter 2011
Jul-10 7,000 162 5,628 6,264 438 11,321 Aug-10 7,321 161 5,180 7,747 414 10,950 Sep-10 6,524 166 5,810 5,930 456 11,978 Oct-10 9,556 176 6,670 6,340 376 9,671 Nov-10 8,484 162 5,341 8,483 369 10,146 Dec-10 7,506 158 5,412 5,574 363 10,238 Jan-11 6,377 136 4,878 6,377 348 10,504 Feb-11 7,321 172 5,611 7,321 368 11,274 Mar-11 7,031, 146 5,219 5,772 341 10,044 Apr-11 6,817, 162 5,108 5,868 359 10,559 May-11 6,020 127 4,140 6,510 375 10,981 Jun-11 5,773 157 5,216 7,538 374 11,039 Jul-11 6,680 140 4,639 6,830 350 10,140 Aug-11 8,743 164 6,513 7,525 360 10,692 Sep-11 6,513 147 5,214 6,875 382 10,620
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