Sisonke District Municipality

Socio-Economic Profile

TABLE OF CONTENTS

1. Demographic profile……………………………………………………………………………………………... 1 1.1 Introduction………………………………………………………………………………………………………….. 1 1.2 Population distribution……………………………………………………………………………………………… 1 1.3 Population distribution by age and gender………………………………………………………………………. 2

2. Global and South African Economic-Outlook……………………………………………………………….. 3

3. KwaZulu-Natal provincial economic structure and performance…………………………………………4

4. Sisonke’s economic performance………..……………………………………………………………………. 5

5. International trade………………………………………………………………………………………………… 7 5.1 Imports and exports………………………………………………………………………………………………… 8

6. Labor markets……………………………………………………………………………………………………... 9 6.1 Employment…………………………………………………………………………………………………………. 9 6.2 Employment by industry…………………………………………………………………………………………… 9 6.3 Unemployment……………………………………………………………………………………………………… 10 6.4 Labour remuneration and productivity……………………………………………………………………………. 11

7. Poverty……………………………………………………………………………………………………………… 14

8. Development indicators.…………………………………………………………………………………………. 14 8.1 Human Development Index (HDI)..………………………………………………………………………………..15 8.2 Income inequality…………………………………………………………………………………………………… 16

9. Education…………………………………………………………………………………………………………… 17 9.1 School and educator: Learner ratio in 2008 and 2011…………………………………………………………. 17 9.2 Literacy rate………………………………………………………………………………………………………… 18

10. Health………………………………………………………………………………………………………………... 19 10.1 HIV and AIDS………………………………………………………………………………………………………. 19

11. Access to basic services………………………………………………………………………………………… 19 11.1 Access to sanitation……………………………………………………………………………………………….. 19 11.2 Access to water……………………………………………………………………………………………………. 20 11.3 Access to electricity……………………………………………………………………………………………….. 21

12. Tourism………………………………………………………………………………………………...... ………... 22

13. Appendix……………………………………………………………………………………………………………. 24

14. References…………………………………………………………………………………………………………. 26

LIST OF TABLES

Table 1: Population size, percentage share of population and density, 2012………………….…………………. 1 Table 2: Provincial GDP-R and Economic Growth Rate – Seasonally Adjusted and Annualized Quarterly, 2010:Q1 to 2013:Q2……………………………………………………………………………………………………...5 Table 3: Sector performance analysis of Sisonke in 2002, 2006 and 2012……………………………………….. 7 Table 4: Exports in Sisonke, 2002 to 2012 (000s)………………...…………………………………………………. 8 Table 5: Imports in Sisonke, 2002 to 2012 (000s)………………..………………………………………………….. 8 Table 6: Total trade and trade balance in Sisonke, 2002, 2008 and 2012……………………………………….. 9 Table 7.1: Employment in KZN and Sisonke district in 2012………………………………………………………. 9 Table 7.2: Sisonke employment by sector in 2002, 2008 and 2012……………………………………………….. 10 Table 8: Poverty levels across Sisonke district in 2002, 2006 and 2012……………………………………….…. 14 Table 9: Learner-Educator Ratio (LER) and Learner-School Ratio (LSR) by districts in 2008 and 2011…….... 17 Table 10: HIV positive estimates and AIDS deaths estimates, 2002 and 2012…………………………………. 19 Table 11: Households access to sanitation by toilet facility in 2002 and 2012……………………………………. 20 Table 12: Access to piped water in KZN and Sisonke, 2002 and 2012…………..……………………………….. 21 Table 13: Tourism spending in KZN, 2002 and 2012……………………………………………………………….. 22 Table 14: Tourism spending as a percentage of GDP in 2002, 2008 and 2012………………………………….. 22

LIST OF FIGURES

Figure 1a: Percentage distribution of Sisonke district population by age and gender, 2002……….…………… 2 Figure 1b: Percentage distribution of Sisonke district population by age and gender, 2012……….…………… 3 Figure 2: GDP contributions in Sisonke, 2012………………………………………………………………………... 6 Figure 3.1: Sisonke district’s unemployment rate (official definition), 2012…………………….………………… 11 Figure 3.2: Sisonke district’s unemployment rate (official definition) by gender………………………...………... 11 Figure 4.1: Sisonke remuneration and productivity trend analysis, 2001 to 2012………...…………………….... 13 Figure 4.2: Sisonke unit labour cost and real GDP growth rate, 2001 to 2012…………………………………… 13 Figure 5: Human Development Index in KZN and Sisonke district municipality in 2002 and 2012…………..... 15 Figure 6: Gini coefficient in KZN and Sisonke district municipality in 2002 and 2012……………………………. 16 Figure 7: Literacy rates in KZN and Sisonke, 2002 to 2012…………...……………………………………………. 18 Figure 8: Percentage share of households in KZN and Sisonke with electricity connection, 2002 and 2012…. 21

APPENDIX

Table A1: National population size, size of the area and population density by province, 2012………………... 24 Figure A1: Percentage share of population size by province, 2012……………………………………………… 24 Figure A2: Percentage contribution to KZN Real GDP by district municipalities, 2012………………………… 25

LIST OF ACRONYMS

AIDS Acquired Immunodeficiency Syndrome DM District Municipality GDP Gross Domestic Product GDP-R Gross Domestic Product by Region GVA Gross Value Added HDI Human Development Index HIV Human immunodeficiency virus KZN KwaZulu-Natal LER Learner-Educator Ratio LM Local Municipality LSR Learner-School Ratio NDP National Development Plan QLFS Quarterly Labour Force Survey SARB South African Reserve Bank Stats SA Statistics South Africa

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Sisonke District Municipality

Sisonke is one of the eleven provincial district municipalities in KwaZulu-Natal (KZN). The district is located in the south west of KwaZulu-Natal along the borders of the Eastern Cape and the kingdom of Lesotho to the north west. The district has a predominantly rural population and it is an inland municipality that comprises of five local municipalities, which are Ingwe, Kwa Sani, Greater Kokstad, Ubuhlebezwe and Umzimkhulu. The district is covered with 10 428 square kilometers (km2) of land area and is home to an estimated 460 958 people and thus constituting a population density of 44.2 per km2.

The towns of Kokstad and Matatiele are recognized as the main economic hubs of the district. Sisonke is well endowed with natural resources and has vast potential for the development of its main economic sectors that is agriculture and tourism.

1. Demographic profile 1.1 Introduction The link between population growth and economic growth had been a long debate among economists. According to Malthus (1826) population growth is supposed to decrease the gross domestic product (GDP) per capita because output growth rate cannot keep pace with population growth. This is due to limited availability of natural resources in the economy. In addition, Solow (1956) analysed the impact of population growth rate on output into two aspects: firstly, an increase in the population rate increases the amount of labour and thus increases output. Secondly, it decreases physical capital stock per worker, thus resulting in a reduction in productivity. It is therefore of utmost importance to look at the population dynamics and its effect on the economy with greater emphasis on Sisonke district municipality.

1.2 Population distribution The focus of this socio-economic profile is on Sisonke district municipality in KwaZulu-Natal (KZN). According to the Census (2011) the province of KZN is home to an estimated 10.3 million people which accounts for an estimated 19.8 per cent of the South African population. The province of KZN is the second most populous province after Gauteng (23.7 per cent). Sisonke municipality is situated in the south west of KwaZulu-Natal along the borders of the Eastern Cape. The district has a predominantly rural population and it is an inland municipality that consists of five local municipalities which include Ingwe, Kwa Sani, Greater Kokstad, Ubuhlebezwe and UMzimkhulu.

Table 1: Population size, percentage share of population and density, 2012 % share of % share of KZN % share of KZN Population Population size Sisonke Area in square KM population Area density population KwaZulu-Natal 10 347 260 100.0 93 378 100.0 110.8 Sisonke 460 958 4.5 100.0 10 428 11.2 44.2 Ingwe 99 787 1.0 21.6 1 993 2.1 50.1 Kwa Sani 12 160 0.1 2.6 1 709 1.8 7.1 Greater Kokstad 66 828 0.6 14.5 2 683 2.9 24.9 Ubuhlebezwe 101 663 1.0 22.1 1 606 1.7 63.3 Umzimkhulu 180 520 1.7 39.2 2 438 2.6 74.0 Source: Global Insight, 2013

The district of Sisonke’s population size is 460 958 which is 4.5 per cent of KZN population. Among the five local municipalities of Sisonke, Umzimkhulu is the most populous municipality with an estimated population size of about 180 520, which accounts for 1.7 percentage share of KZN population. Ubuhlebezwe (1.0 per cent of KZN population) trails Umzimkhulu with the population of 101 663. Ingwe is the third populous local municipality with the population of 99 787 followed by Greater Kokstad (66 828) and lastly Kwa Sani with 12 160 people (table 1).

1.3 Population distribution by age and gender Figure 1a shows the population distribution of Sisonke district by age and gender for the year 2002. The distribution is narrowly distributed indicating that a large part of the population is between the ages of 00-04 to 20-24. It has to be noted that the age group of 10-14 years constituted the largest population in the district (15.0 per cent). In 2002 the percentage of both male and female population seemed to be slightly growing by each age cohort from 00-04 before starting to decrease at the age group 15-19 (figure 1a). Seemingly this decrease is happening at the age level when individuals are entering the economically active population.

Figure 1a: Percentage distribution of Sisonke district population by age and gender, 2002

Source: Global Insight, 2013

In 2012 the decrease in the population in both genders starts very early between the age cohorts 00-04 to 05-09. It has to be noted that the largest size of approximately 262 303 (56.9 per cent) of the district population fell within the 15-64 age groups, which constitutes the economically active population (EAP). This means that an estimated 198 655 (43.1 per cent) of the district’s population is distributed under the age of 15 and those above 64, which translate to an alarming dependency ratio1 of 75.7 per cent.

1 Dependency Ratio = (number of people under 15 years) + (number of people aged 65 and over)/ (number of people between 15 and 64 years) X 100 = (175 749 + 22 907) / (262 303) X 100 = 75.7 per cent. The dependency ratio is an age population ratio of those not in the labour force to those in the labour force.

The implication of this high dependency ratio is that the working population is heavily burdened as it has to provide the social services needed by children and older people who are often economically dependent. For example, a high youth dependency implies that there is a need for investment in health care facilities, basic education and child care. Nevertheless, the dependency ratio ignores the fact that the population age group above 65 is not necessarily dependent because an increasing proportion of them is working and that many of those of 'working age' are actually not working. Furthermore, as the period of training for a productive life increases, most adolescents and young adults remain in school and out of the labour force, effectively extending the period of young-age dependency well beyond age fifteen2. Therefore, it is of utmost important to use this tool with caution or maybe with other instruments.

Figure 1b: Percentage distribution of Sisonke district population by age and gender, 2012

Source: Global Insight, 2013

2. Global and South African Economic-Outlook The International Monetary Fund (IMF) (April 2013) projects the global economic growth rate to remain subdued at slightly above 3.0 per cent in 2013 to 3¾ per cent in 2014. This projection is expected to be driven mainly by the weaker domestic demand and slower growth in several key emerging economies as well as recession in the euro area.

2 http://www.un.org/esa/sustdev/natlinfo/indicators/methodology_sheets/demographics/dependency_ratio.pdf . Accessed: 6 August 2013.

The National Treasury (2013) projects South African economy to grow by 2.7 per cent in 2013, 3.5 per cent in 2014 and 3.8 per cent in 2015. This growth rate is expected to be enhanced by robust investment spending and rising exports. Other factors that are expected to contribute to the above trend are:

 Additional electricity supply from new power plants  Water supply and rail capacity upgrades  Strong regional growth  Stable inflation and  Low interest rates.

The South African Reserve Bank (SARB) (2013) revised its growth forecasts from 2.7 per cent to 2.4 per cent for 2013 and from 3.7 per cent to 3.5 per cent in 2014 and expected to accelerate to 3.8 per cent in 2015. In addition, the International Monetary Fund (July 2013) revised South Africa’s growth forecast for 2013 from 2.8 per cent to 2.0 per cent.

The year-on-year inflation rate as measured by the consumer price index (CPI) for all urban areas was 5.9 per cent in April 2013. The SARB (2013) expects inflation to average 0.1 percentage points lower in 2013 and 2014 at 5.8 per cent and 5.2 per cent, respectively. A temporary breach of the upper end of the target range is still expected in the third quarter of 2013, but at a lower average level of 6.1 per cent, followed by a gradual moderation of inflation to 4.9 per cent in the final quarter of 2015. The slight improvement is due to changed assumptions about international commodity prices, including oil and lower global inflation.

South Africa’s outlook for household consumption, which accounts for about 60 per cent of GDP, is modest, with growth expected to average 3.6 per cent over the medium term. Sluggish job creation is likely to inhibit real disposable income growth, while elevated household debt levels could restrain consumer spending. Continued implementation of the national infrastructure programme is expected to result in robust public-sector fixed capital formation, which is forecast to grow at an average of 9.0 per cent in 2013 to 2015. A moderate acceleration in private-sector investment is also expected, as rising capacity utilisation necessitates additional investment, housing construction recovers after five years of contraction and inventory restocking takes place.

3. KwaZulu-Natal provincial economic structure and performance Following the global and national trends, the provincial economy recorded a seasonally adjusted and annualized quarterly increase of 0.9 per cent in the second quarter of 2013, compared to the revised 0.1 per cent recorded during the first quarter of the same year. The 2013 second quarter annual growth rate indicates that the provincial economic activity although it is at worse levels but it showed marginal improvement.

The annualized growth rates also indicate that both the secondary (2.4 per cent) and the tertiary (0.6 per cent) economic sectors continue to record positive growth rates while the primary sector recorded negative growth (-1.0 per cent). All the sub-sectors in the secondary and tertiary sectors recorded positive growth with manufacturing at 2.8 per cent, electricity, gas and water at 1.3 per cent and the remaining sub-sectors growing at less than 1.0 per cent. Mining and quarrying sub-sector deteriorated from positive growth of 1.7 per cent to negative 1.4 per cent.

Table 2: Provincial GDP-R and Economic Growth Rate – Seasonally Adjusted and Annualized Quarterly, 2010:Q1 to 2013:Q2.

Provincial Industry 2010q1 2010q2 2010q3 2010q4 2011q1 2011q2 2011q3 2011q4 2012q1 2012q2 2012q3 2012q4 2013q1 2013q2 Primary Industries 4.12 0.66 4.26 2.50 -0.77 -1.98 -2.21 -0.82 0.58 3.23 0.69 1.42 0.23 -1.04 Agriculture, forestry and fishing 2.95 2.61 3.45 2.15 -0.08 -2.39 -1.49 -0.95 2.33 2.26 1.79 2.41 -0.13 -0.94 Mining and quarrying 8.19 -5.72 7.14 3.72 -3.13 -0.52 -4.68 -0.35 -5.61 6.96 -3.34 -2.42 1.69 -1.42 Secondary Industries 1.80 1.43 -0.52 1.11 2.60 -0.88 -0.13 0.93 1.36 -0.15 0.36 0.97 -1.73 2.37 Manufacturing 2.12 1.87 -0.57 1.21 3.10 -1.09 -0.09 1.11 1.54 -0.21 0.30 1.24 -2.06 2.76 Electricity, gas and water 0.53 -0.17 -0.31 1.38 0.21 0.10 -0.76 0.16 -0.52 -1.08 0.40 -0.55 -1.08 1.30 Construction 0.47 -0.63 -0.23 0.23 0.58 0.05 0.02 0.17 1.35 0.85 0.81 0.05 0.32 0.29 Tertiary industries 1.05 1.12 0.70 0.84 1.15 1.02 1.06 0.86 0.95 0.57 0.46 0.57 0.79 0.58 Wholesale & retail trade; hotels & restaurants 1.52 1.69 1.13 1.20 1.24 1.24 1.41 1.23 1.47 0.67 0.42 0.37 1.14 0.78 Transport , storage and communication 0.87 0.72 0.56 0.67 0.98 1.01 0.51 0.67 0.63 0.55 0.27 0.48 0.57 0.40 Finance, real estate and business services 1.08 0.95 0.49 0.73 1.66 0.84 1.35 0.66 1.34 0.53 0.45 0.71 1.06 0.87 Personal services 0.81 1.04 0.71 0.59 0.64 0.64 0.61 0.61 0.49 0.47 0.53 0.62 0.47 0.47 General government services 0.78 1.19 0.65 0.91 0.69 1.26 1.02 1.09 0.30 0.61 0.67 0.65 0.32 0.08 All industries at basic prices 1.42 1.18 0.56 1.01 1.43 0.32 0.55 0.79 1.04 0.52 0.44 0.73 0.07 0.96 Taxes less subsidies on products 0.71 0.70 1.17 0.89 2.01 0.97 1.01 1.37 0.85 1.28 0.62 0.47 0.62 0.34 KZN - GDPR at constant 2005 prices 1.35 1.13 0.62 1.00 1.49 0.39 0.60 0.85 1.02 0.60 0.46 0.70 0.13 0.90 Source: KZN Treasury Economic Model, 2013

4. Sisonke’s economic performance Appendix figure A2 represents the percentage contribution on GDP of the district municipalities in KZN. In the whole of KZN the Real Gross Domestic Product (GDP-R) was estimated at approximately 323.6 billion for the year 2012 (Global Insight, 2013). It is not surprising that eThekwini is contributing almost two third (64.9 per cent) of KZN GDP as it is classified as the most strategically important node for the province. The second and third largest contributors to the KZN’s GDP were uThungulu and uMgungundlovu contributing 8.3 per cent and 8.1 per cent, respectively. In addition, Sisonke district municipality was the second lowest contributor to the KZN GDP at merely 1.2 per cent. The low economic activity in Sisonke district is associated with social and economic challenges such as unemployment and the lack of the provision of basic needs (Appendix figure A2).

Figure 2 shows the estimated real Gross Domestic Product for Sisonke district municipality and its local municipalities for the year 2012. Sisonke district had an estimated GDP-R of more than R3.8 billion in 2012. Umzimkhulu local municipality was the largest contributor to the district GDP-R at 1.2 billion (32.2 per cent) followed

5 by Ubuhlebezwe with contribution of R903 million (23.6 per cent). Kwa Sani local municipality was the lowest contributor to Sisonke’s GDP at merely R217 million (5.7 per cent).

Figure 2: GDP contributions in Sisonke, 2012

Source: Global Insight, 2013

Table 3 shows Sisonke’s contribution to GDP by sectors in 2002, 2006 and 2012. It can be seen that the tertiary sector contributed 52.5 per cent in 2002 and increased to 61.1 per cent in 2006 before reaching 66.9 per cent in 2012. The major contribution in the tertiary sector emanated from the community service which in actual fact is supposed to create an environment for the private sector to positively contribute in the economic growth by providing prudent polices and infrastructure development.

Contrary, the primary sector realized a decline from 37.7 per cent in 2002 to 28.9 per cent and 24.1 per cent in 2006 and 2012 respectively. The contribution by the primary sector mainly emanate from the agricultural sector (24.0 per cent in 2012) with mining showing just mere 0.1 per cent in 2012.

Table 3: Sector performance analysis of Sisonke in 2002, 2006 and 2012 2002 2006 2012 % % % Primary sector 37.7 28.9 24.1 Agriculture 37.6 28.6 24.0 Mining 0.2 0.2 0.1 Secondary sector 9.7 10.0 9.0 Manufacturing 6.9 7.3 6.1 Electricity 1.6 1.4 1.4 Construction 1.2 1.4 1.5 Tertiary sector 52.5 61.1 66.9 Trade 14.3 15.7 18.0 Transport 3.4 3.9 4.0 Finance 7.8 8.8 13.1 Community services 27.0 32.8 31.7 Source: Global Insight, 2013

The main challenge in the district is that the secondary sector is not adequately adding value in the economy of the district and the economy at large. Hence, it is expected to present an opportunity to significantly accelerate economic growth and development. The secondary sector contribution increased from 9.7 per cent in 2002 to 10.0 per cent in 2006 before decreasing to 9.0 per cent in 2012. It is therefore important to improve the level of the secondary sector, more especially the manufacturing sector and open the district to more activity that is labour intensive with the motive of increasing income which will induce demand.

5. International trade Elwell (2006) asserts that the economic benefit of specialization and trade is a fundamental aspect of economic life for individuals, regions and nations. The benefits of trade can accrue to a nation even if it is less efficient in the production of tradable goods. Yet, proper administration of imports is essential to a free flow of goods and services to a home country; thus tariffs, quotas and government subsidies obstruct this free flow3. The principal objective of import administration is to enforce anti-dumping measures and implement fair trade practices across borders.

International trade can assist the country to improve economies of scale and be competitive in a global market, thus enhancing growth and development. Increasing exports of goods to international markets can attract foreign exchange in a country. This can also enhance GDP of a country by increasing output for both domestic and foreign consumption. Conversely, the current account deficit is a means for the nation to spend beyond current production which results in a need to attract foreign capital in order to fund increased spending. However, utilising foreign capital entails cost to the nation as foreign debts have to be paid in future.

3 www.SouthAfrica.info. South African Economic overview.

5.1 Imports and exports Table 4 represents Sisonke district and its local municipality’s exports from 2002 to 2012 in actual rand values. Exports in Sisonke districts grew from an estimated value of R4.9 million in 2002 to R19.7 million in 2012 which was a growth of 302 percent. However, the district’s proportion to KZN exports was at a mere 0.02 per cent in 2012. Greater Kokstad was the major exporter in the district with exports estimated at R18.1 million followed by Umzimkhulu at R1.3 million in the same period. Other local municipalities’ contributions to the district exports were very minimal.

Table 4: Exports in Sisonke, 2002 to 2012 (000s) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sisonke 4 906 3 717 4 106 4 944 7 527 10 095 33 208 34 580 21 708 14 522 19 701 Ingwe 0 0 0 37 47 47 243 1 739 183 123 185 Kwa Sani 0 240 0 122 4 0 1 290 3 036 1 833 2 119 15 Greater Kokstad 545 550 393 1 796 4 932 7 463 28 759 27 410 18 536 10 407 18 098 Ubuhlebezwe 0 225 0 0 4 20 0 0 0 9 9 Umzimkhulu 4 361 2 701 3 713 2 988 2 540 2 566 2 916 2 395 1 156 1 865 1 395 Source: Global Insight, 2013

Table 5 represents Sisonke district and its local municipality’s imports from 2002 to 2012. In 2012 Sisonke imported products estimated to the value of R5.5 million. The highest value of imports in the district was in the year 2008 (R7.9 million) and started to decrease in the years 2009 and 2010 before showing a positive trend again in 2011 and 2012. The Greater Kokstad was the largest importer with imports estimated to over R4.1 million in 2012 followed by Kwa Sani (R775 thousands) and Umzimkhulu (R599 thousands).

Table 5: Imports in Sisonke, 2002 to 2012 (000s) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sisonke 674 925 654 2 014 5 582 2 014 7 922 6 021 4 966 5 228 5 539 Ingwe 292 728 323 1 440 1 238 466 17 23 0 0 5 Kwa Sani 162 104 222 193 3 690 458 328 193 392 691 775 Greater Kokstad 193 70 44 278 230 846 6 913 5 267 4 172 3 825 4 158 Ubuhlebezwe 9 1 50 38 127 3 33 32 30 13 1 Umzimkhulu 18 22 16 65 297 242 632 506 372 699 599 Source: Global Insight, 2013

Table 6 represents the trade balance and total trade for Sisonke district for the years 2002, 2008 and 2012. The district had positive trade balances (surplus) for all the years under review. It increased from R4.2 million in 2002 to R25.3 million in 2008 before decreasing to R14.2 million in 2012. Total trade in the district followed the same trend by increasing from R5.6 million in 2002 to R41 million in 2008 before decreasing to R25 million in 2012. The decline in both exports and imports in 2009 and 2010 was as a result of the global financial crisis which affected the demand for goods both locally and internationally.

Table 6: Total trade and trade balance in Sisonke, 2002, 2008 and 2012 2002 2008 2012 Exports 4 906 33 208 19 701 Imports 674 7 922 5 539 Trade Balance 4 232 25 285 14 163 Total Trade 5 580 41 130 25 240 Source: Global Insight, 2013

6. Labour markets The quarterly labour force survey (QLFS) for the second quarter of 2013 reveals that in the months of April to June 2013 the official unemployment rate in South Africa rose to 25.6 percent from the previous quarter (25.3 percent) (Stats SA, 2013). The labour force increased by 222 000 persons between the first quarter and the second quarter of 2013. This increase is reflected in the number of both unemployed persons (122 000) and employed persons (100 000), which saw the unemployment rate increase by 0,4 percentage point from 25,2 per cent to 25,6 per cent in the second quarter of 2013 (Stats SA, 2013).

6.1 Employment Table 7 indicates the number of people who are formally and informally employed in KZN and Sisonke district in 2012. The district’s share of the provincial formal employment in 2012 was 2.2 per cent compared to 3.0 per cent in the informal sector. The Greater Kokstad local municipality had the highest share of both the district formal and informal employment at 37.8 per cent and 27.5 per cent, respectively. Kwa Sani had the lowest share of the district formal (7.4 per cent) and informal employment (7.6 per cent).

Table 7.1: Employment in KZN and Sisonke district in 2012

% share of KZN % share of district Formal Informal Total % share of KZN % share of district informal informal employment employment employment formal employment formal employment employment employment KwaZulu-Natal 1 505 281 550 806 2 056 086 100 100 Sisonke 33 449 16 717 50 166 2.2 3.0 100 100 Ingwe 5 233 2 386 7 619 0.3 0.4 15.6 14.3 Kwa Sani 2 459 1 276 3 735 0.2 0.2 7.4 7.6 Greater Kokstad 12 641 4 601 17 243 0.8 0.8 37.8 27.5 Ubuhlebezwe 4 444 4 077 8 521 0.3 0.7 13.3 24.4 Umzimkhulu 8 671 4 377 13 048 0.6 0.8 25.9 26.2 Source: Global Insight, 2013

6.2 Employment by industry Table 7.2 is a representation of employment by sector in the Sisonke district. The tertiary sector was the highest employer with an estimated 35 134 number of people employed (70 per cent) with community services employing 27.9 per cent followed by trade (23.6 percent). The primary sector experienced a decline in employment in Sisonke, mainly in the agricultural sector from 26.0 per cent to 21.3 per cent and 18.1 per cent for the periods 2002, 2008 and

2012 respectively. In all three sectors in the district, the secondary sector was the least employer (11.9 per cent in 2012).

Table 7.2: Sisonke employment by sector in 2002, 2008 and 2012 2002 2008 2012 Number of Number of Number of % of People % of People % of People People People People Employed Employed Employed Employed Employed Employed Agriculture 10,105 25.8 9,897 21.1 9,002 17.9 Mining 67 0.2 61 0.1 57 0.1 Primary Sector 10,172 26.0 9,958 21.3 9,059 18.1 Manufacturing 2,763 7.1 3,031 6.5 3,302 6.6 Electricity 75 0.2 89 0.2 83 0.2 Construction 2,318 5.9 2,638 5.6 2,587 5.2 Secondary Sector 5,156 13.2 5,758 12.3 5,973 11.9 Trade 8,974 23.0 10,744 23.0 11,848 23.6 Transport 1,098 2.8 1,693 3.6 2,111 4.2 Finance 1,319 3.4 1,907 4.1 2,408 4.8 Community services 8,607 22.0 11,687 25.0 13,983 27.9 Households 3,765 9.6 5,056 10.8 4,784 9.5 Tertiary Sector 23,764 60.8 31,087 66.4 35,134 70.0 Source: Global Insight 2013

6.3 Unemployment Figure 3.1 shows the level of unemployment in KZN and Sisonke district municipality in 2012. The official unemployment rate in KZN was at 22.0 percent in 2012. Ingwe local municipality had the highest unemployment rate at 37.7 per cent followed by Umzimkhulu (34.0 per cent). The local municipality with the lowest unemployment rate was the Greater Kokstad at 13.0 per cent.

The accompanying figure 3.2 shows the level of unemployment by gender in the same period. The province of KZN experienced 22.4 per cent and 21.7 per cent of male and female population unemployed in 2012 as compared to 28.0 per cent and 19.1 per cent in Sisonke district, respectively. Ingwe had the highest unemployment rate for males at 41.1 per cent followed by Umzimkhulu (40.4 per cent). Ingwe had the highest unemployment rate for females at 31.2 per cent followed by Umzimkhulu at 25.7 per cent. The lower unemployment rate for females as compared to that of males in Sisonke district leaves a question about the role played by women in the district.

Figure 3.1: Sisonke district’s unemployment rate (official definition), 2012

Source: Global Insight 2013

Figure 3.2: Sisonke district’s unemployment rate (official definition) by gender, 2012

Source: Global Insight 2013

6.4 Labour remuneration and productivity

Labour productivity4 is the measure usually used when calculating unit labour cost. It is a meaningful measure since it helps reflect changes in the price of labour. An improvement in this variable can be due to an accumulation of machinery, improving technology, investment in infrastructure, skills development, and improvement in the health of organisations (ILO, 2010).

The unit labour cost5 on the other hand measures the average cost of output, therefore rapid growth in remuneration per worker is not harmful as long as it is coupled with a proportional increase in productivity. This measure serves as a key indicator of cost pressures, competitiveness and cost efficiency of labour. If unit labour cost increases at a rate higher than in the economies of its international competitors, the situation might be temporarily absorbed by cutting profit margins. However, in the long term it deteriorates competitiveness, thus reducing output and employment (Mohr, 2008).

Similar to most provinces across the country, the growth rate in labour remuneration has outstripped productivity growth in KwaZulu-Natal over the period 2001 to 2011. This disparity, coupled with costly labour arbitration processes, make it difficult to lay-off poor performing employees. This has led to businesses being reluctant to add jobs thus affecting global competitiveness.

The “red tape study” conducted by KwaZulu-Natal Provincial Treasury which was published in 2012 reveals that a number of businesses feel that they were faced with increased input cost, yet generating disproportionately low levels of output. The study further revealed that there were high risks associated with hiring workers in the country. The inflexibility of the labour market and industrial actions are cited as constraints that make it difficult to incentivise higher productivity (Genesis Analytics, 2012).

Figure 4 depicts remuneration and productivity in Sisonke district from 2001 to 2012. Labour remuneration had been above productivity in all the years under review. In some years the productivity of labour was below zero. The negative productivity levels imply a decrease in output. When remuneration is above the productivity levels, this indicates that labour is being compensated for more than what is produced. The highest gap was experienced in 2002 with labour remuneration at 18.8 per cent while labour productivity was at 2.0 per cent. These two variables should have a positive relationship and an ideal situation is for them to move in the same direction since high productivity should be highly remunerated. Given these huge disparities between labour productivity and remuneration there is therefore a need for policy makers and other role players like business and labour to arrive at a solution for this phenomenon.

4 Labour productivity is defined as output per unit of labour. Labour remuneration is measured as remuneration per worker at current prices. 5 The unit labour cost is calculated by dividing remuneration per worker by labour productivity

Figure 4.1: Sisonke remuneration and productivity trend analysis, 2001 to 2012

Source: Own calculations using data from Global Insight, 2013

Figure 4.2: Sisonke unit labour cost and real GDP growth rate, 2001 to 2012

Source: Global Insight, 2013

7. Poverty According to World Bank, poverty is defined as the deprivation in well being and further encompasses individuals’ low income and the inability to attain the necessary basic needs for survival. Table 8 shows the average number of people living in poverty in KZN and Sisonke district for the periods 2002, 2006 and 2012. It is estimated that in KZN 5.5 million people were living in poverty in 2002 as compared to 4.7 million people in 2012. This shows percentage decrease from 57.6 per cent in 2002 to 45.3 per cent in 2012 in the province.

Table 8: Poverty levels across Sisonke district in 2002, 2006 and 2012 2002 2006 2012 Number of people % share of people Number of people % share of people Number of people % share of people living in poverty living in poverty living in poverty living in poverty living in poverty living in poverty KwaZulu-Natal 5 540 825 57.6 5 212 304 52.7 4 692 297 45.3 Sisonke 335 323 74.7 324 894 70.9 265 997 57.7 Ingwe 85 763 80.7 80 537 76.6 62 258 62.4 Kwa Sani 6 161 55.0 6 552 58.3 6 255 51.4 Greater Kokstad 40 186 68.4 45 999 69.7 41 038 61.4 Ubuhlebezwe 79 012 77.4 82 187 77.7 61 192 60.2 Umzimkhulu 124 201 72.8 109 619 64.4 95 254 52.8 Source: Global Insight 2013

The table further indicates that Sisonke had 335 323 people living in poverty in 2002 as compared to 265 997 people in 2012. The level of poverty was very high in Sisonke at 74.7 in 2002 and decreased to 57.7 per cent in 2012. In all the local municipalities of Sisonke the percentage share of people living in poverty showed a downward trend between 2002 and 2012. It can therefore be deduced that although it is still very high but government had played a crucial role in reducing the impact of poverty in society through social expenditure programmes.

8. Development indicators In His State of the Nation Address for the year 2012, State President, Mr Jacob Zuma, acknowledged the persistent triple challenge of poverty6, unemployment and inequality which is currently facing South Africa. He also highlighted that “Africans, women and the youth continue to suffer most from this challenge”. Considering then that the KwaZulu-Natal population is predominantly youthful, African and female, it is a reasonable deduction that the province is feeling the brunt of these unjust realities.

It is therefore not surprising that one of the National Development Plan’s (NDP) priorities is to focus on building quality education. Building national capabilities requires quality early year childhood development, basic education, further and higher education. Poor quality of education and low employment levels are two major problems affecting the South African economy. These two aforementioned variables are interrelated in that a poor quality of education can lead to inability to find relevant employment, resulting in structural unemployment7; the most prevalent type of unemployment in South Africa.

6 The number of people living in poverty is the number of people living in households that have income less than the poverty income. The poverty income is defined as the minimum monthly income needed to sustain a household and varies according to the size of that household. 7 Structural unemployment is a form of unemployment resulting from mismatch between demand in the labour market and the skills and locations of the workers seeking employment.

Inherently, unemployment leads to loss of income by households. As household income decreases and becomes unable to meet all the needs of the household, that household is categorised as living in poverty. Through the NDP, government aims to eliminate poverty and reduce inequality over the next two decades.

8.1 Human Development Index (HDI) The HDI is used to rank the development of countries, through examining the achievements of the country and its people. The index focuses on the three important elements to human living standards, namely; life expectancy, standards of living and literacy levels. Life expectancy looks at the ages that which people within the area reach, is healthy long life a trend, standards of living looks at the income for basic living according Purchasing Power Parity (PPP) of income and literacy levels looks at adults’ literacy level as well as enrollment8. Regions with an HDI value of 0.80 or more are classified as having high human development status. Those with HDI values between 0.50 and 0.80 are classified as having medium human development. A HDI of less than 0.50 indicates low human development.

Figure 5: Human Development Index in KZN and Sisonke district municipality in 2002 and 2012

Source: Global Insight 2013

Figure 5 shows the average HDI for KZN and Sisonke district in 2012. The HDI for KZN increased from 0.51 in 2002 to 0.60 in 2012, which means that the province still has a long way to go to improve development. Sisonke district’s human development increased from a mere 0.40 per cent in 2002 to 0.52 in 2012 which is still far below that of the province. Ingwe is the only municipality with an HDI of less than 0.50, thus indicating low human development. The result of Sisonke’s HDI is not surprising considering the high level of poverty in the district.

8 www.businessdictionary.com

8.2 Income inequality Income inequality9 is one of the important indicators of the level of development in an economy, as it shows the disparities between the rich and the poor. According to the World Bank (2012), excessive income inequality adversely affects people’s quality of life. This leads to a higher incidence of poverty, thereby impeding progress in health and education, and contributing to crime.

Figure 6: Gini coefficient in KZN and Sisonke district municipality in 2002 and 2012

Source: Global Insight 2013

The Gini coefficient is a summary statistic of income inequality that ranges from zero to one. It measures whether income is distributed equally or not in the economy. Zero would represent equal distribution and one would represent perfectly unequal distribution where only one person receives all the income in the economy. It is one of the macroeconomic objectives for any economy to ensure an equitable distribution of income.

Figure 6 represents the Gini coefficients for KZN and Sisonke district in 2002 and 2012. KZN’s Gini coefficient decreased marginally from 0.66 in 2002 to 0.64 in 2012, indicating that the province is still having a high level of income inequality. Sisonke had a Gini coefficient of 0.56 in 2012 which was high as well but lower than that of the province. These results indicate that Sisonke had population with unequal income, which is expected given the level of poverty in the district. These results also imply the need for the implementation of incentives to boost economic participation for all individuals in the province and the district. The benefits of economic growth in the economy should be shared by all the citizens.

9 Income inequality is often presented as the percentage of income to a percentage of population. The Gini coefficient is used as the main indicator of income distribution.

9. Education According to the National Development Plan of South Africa (2012) education has intrinsic and instrumental value in creating societies that are better able to respond to the challenges of the 21st century. A country with good education system is sure to thrive and introduce better approach of facing social and economic challenges.

The achievement of universal primary education is one of the millennium development goals that is very crucial in the advancement and the upliftment of the society. Literate and educated people are in a better position to obtain meaningful and decent employment and create work opportunities for themselves and for the others.

9.1. School and educator: Learner ratio 2008 and 2011 There is a link between learner-educator ratio (LER) and educational outcomes for children. Educators are expected to give individual attention to learners and ensure that they understand the material being taught. The ideal LER is 30 per class. The problem of overcrowded classrooms is among others, one of the challenges educators face as they are not able to give personal attention to learners.

Table 9: Learner-Educator Ratio (LER) and Learner-School Ratio (LSR) by districts in 2008 and 2011 2008 2011 no.of no.of no.of no.of no.of no.of Districts learners educators schools LER LSR learners educators schools LER LSR eThekwini 672100 4866 1015 29.4 662.2 690646 24285 1057 28.4 653.4 Ugu 215485 4913 471 31.9 457.5 220708 7199 507 30.7 435.3 uMgungundlovu 233677 8855 528 29.8 442.6 239760 8482 547 28.3 438.3 uThukela 206167 6302 455 32.6 453.1 206942 6517 460 31.8 449.9 uMzinyathi 183822 8621 489 34.1 375.9 184930 5493 485 33.7 381.3 Amajuba 140550 4272 263 32.9 534.4 136338 4275 250 31.9 545.4 Zululand 288320 5391 730 33.4 395 301086 9457 769 31.8 391.5 uMkhanyakude 219160 6327 485 34.8 445.7 236137 7362 545 32.1 433.3 uThungulu 290880 7834 637 32.8 456.6 302151 9614 677 31.4 446.3 iLembe 159668 6734 403 32.5 396.2 171784 5467 431 31.4 398.6 Sisonke 161591 22868 461 33.2 350.5 156896 5115 452 30.7 347.1 KZN 2771420 86983 5938 31.9 467 2847378 93266 6180 30.5 461 Source: Dept of Basic Education, 2013

Table 9 shows the number of schools, educators and learners across the KwaZulu-Natal districts for the year 2008 and 2011. A comparison of the years 2008 and 2011 indicates that there had been an increase in the province’s number of learners, educators and schools. Subsequently, the learner-educator ratio decreased from 31.9 in 2008 to 30.5 in 2011 indicating that each educator has a little less number of learners to attend to and is able to give more time to each learner needs.

The learner to school ratio also decreased from 467 to 461 indicating that the resources that are available in each school are being used by less learners and they are more available to each learner in the school. These changes to the ratios are so minor that significant changes based on the ratios may not be observable.

The table further indicates that the number of learners in Sisonke district decreased from 161 591 in 2008 to 156 896 in 2011 (a decrease of 2.9 per cent). In 2008, there were 461 schools within this district, since then the number of schools had decreased to 452. Although these results had impacted positively to the LER ratio (decreased from 33.2 to 30.7) but the decrease in both the number learners and schools is not good for the district.

9.2 Literacy rate According to the World Bank literacy rate10 is the percentage of the population age 15 and above who can, with understanding, read and write a short simple statement on their everyday life. Literacy confers human development benefits, such as self-confidence, esteem as well as self empowerment. Literacy also has an influence on human capital and the ability of individuals, social institutions and nations to adapt and change along with technological and other developments in the global market.

Figure 7: Literacy rates in KZN and Sisonke, 2002 to 2012

Source: Global Insight 2013

10 Literacy rate is calculated by dividing the number of literate individuals aged 15 years and over by the corresponding age group population and multiplying the result by 100. Available on: http://data.worldbank.org/indicator/SE.ADT.LITR.ZS.

Figure 7 shows the literacy rate in the province of KZN and Sisonke during the period 2002 and 2012. Although the level of literacy had increased from 63.3 per cent in 2002 to 71.9 per cent in 2012 for KZN province and 49.7 per cent in 2002 to 58.1 per cent in 2012 for Sisonke, however, there is a lot that needs to be done given the marginal change over the years. In addition, the rate of literacy in Sisonke is far below the provincial one for all the years under review. It is therefore of utmost importance to intervene in the district with the motive of improving education in general.

10. Health

10.1 HIV and AIDS The HIV/AIDS pandemic is a worldwide phenomenon. South Africa is one of the countries highly affected by this pandemic. Table 9 provides KZN and Sisonke HIV positive estimates and AIDS deaths estimates for the period 2002 to 2012. The proportion of HIV positive estimates in the province of KZN increased from 11.7 per cent in 2002 to 14.1 per cent in 2012. However, the percentage of deaths due to AIDS was low at 0.8 per cent in 2012. The district of Sisonke also showed almost similar trend in the same period (11.4 per cent in 2002 and 13.8 per cent in 2012). The low deaths rate due to HIV/AIDS is as a result of the overall campaigns in the fight against the scourge of the disease including the government initiative to spread the HIV/AIDS drug to the public.

Table 10: HIV positive estimates and AIDS deaths estimates, 2002 and 2012 Total Population HIV Positive % Estimates Aids Deaths % Estimates 2002 2012 2002 2012 2002 2012 KZN 9 620 567 10 347 260 11.7 14.1 0.4 0.8 Sisonke 449 044 460 958 11.4 13.8 0.4 0.8 Ingwe 106 265 99 787 11.0 13.6 0.4 0.8 Kwa Sani 11 204 12 160 12.7 15.9 0.4 0.9 Greater Kokstad 58 775 66 828 13.9 15.9 0.5 0.9 Ubuhlebezwe 102 118 101 663 11.4 13.7 0.4 0.8 Umzimkhulu 170 681 180 520 10.7 13.2 0.4 0.8 Source: Global Insight 2013

11. Access to basic services

11.1 Access to sanitation It is one of the government’s objectives to ensure that all citizens have access to basic water and sanitation services. This is fundamental to ensuring healthy living environment in the society. Government has prioritised not only the rollout of infrastructure necessary for the rendering of these services but also the provision of free basic services to poor households (National Treasury, 2011).

Table 10 shows KZN and Sisonke’s households’ access to sanitation by toilet facilities. The proportion of households without toilets in KZN dropped from 17.3 per cent in 2002 to 6.5 per cent in 2012. The district of Sisonke also realized a massive decline in the communities without toilets from 11.8 per cent in 2002 to 3.3 per cent in 2012 which is also below that of the province. There are very few households using the bucket system across the province and in Sisonke.

Table 11: Households access to sanitation by toilet facility in 2002 and 2012 2002 2012 Flush Bucket Flush Bucket toilet (VIP) Pit toilet system No Toilet toilet (VIP) Pit toilet system No Toilet KwaZulu-Natal 44.8 8.5 29.1 0.3 17.3 49.6 22.2 21.2 0.5 6.5 Sisonke 19.5 8.0 60.3 0.4 11.8 21.9 35.7 39.0 0.2 3.3 Ingwe 11.0 11.0 66.4 0.3 11.2 13.6 46.6 36.3 0.1 3.4 Kwa Sani 31.1 12.9 50.7 0.2 5.1 31.9 43.9 21.2 1.5 1.5 Greater Kokstad 60.6 2.0 18.9 0.2 18.2 65.4 16.0 14.5 0.1 4.0 Ubuhlebezwe 15.6 9.4 61.5 0.5 13.0 16.8 48.3 31.5 0.5 2.9 Umzimkhulu 5.6 7.9 77.4 0.4 8.7 9.4 29.7 57.5 0.1 3.2 Source: Global Insight 2013

The proportion of households using flush toilet system in Sisonke increased marginally from 19.5 per cent in 2002 to 21.9 per cent in 2012. It is encouraging that all the local municipalities in this district also showed positive trend in regard to the use of flush toilet system. The Greater Kokstad local municipality had the highest proportion of people using flush toilets both in 2002 and 2012 at 60.6 per cent and 65.4 per cent respectively. This was even higher than the provincial average. It is encouraging that all the local municipalities in this district also showed positive trend in regard to the use of flush toilet system. Despite the progress made with regard improving access to basic sanitation, but there are still communities that are living without proper sanitation.

11.2 Access to water South Africa is a water scarce country which depends more for its water supply on rainfall patterns. The increasing demand for water in South Africa is due to rapid economic growth, population growth and other social development needs. Adequate water supply for the country is needed to achieve economic growth and to ensure that every person in South Africa have access to potable water11.

11 www.dwaf.gov.za

Table 12: Access to piped water in KZN and Sisonke, 2002 and 2012 % No Formal piped water % On-site % Off-site 2002 2012 2002 2012 2002 2012 KZN 22.4 19.8 55.5 60.6 22.1 19.6 Sisonke 45.5 47.6 30.9 26.7 23.5 25.6 Ingwe 46.3 64.7 27.4 17.5 26.3 17.9 Kwa Sani 19.3 42.0 66.5 52.4 14.3 5.6 Greater Kokstad 4.8 9.8 73.5 68.8 21.7 21.4 Ubuhlebezwe 57.6 42.7 22.6 21.5 19.8 35.8 Umzimkhulu 60.2 58.2 13.8 14.3 26.0 27.5 Source: Global Insight 2013

Table 11 shows the improvement in piped water access in the province of KZN. The province recorded a decrease in the proportion of households with no piped water from 22.4 per cent in 2002 to 19.8 per cent in 2012. Conversely, the district of Sisonke recorded an increase in the proportion of people with no formal piped water from 45.5 per cent in 2002 to 47.6 per cent in 2012. All the local municipalities in the district recorded an increase in the percentage of households with no formal piped water with the exception of Ubuhlebezwe (57.6 per cent in 2002 to 42.7 per cent in 2012) and Umzimkhulu (60.2 per cent in 2002 to 58.2 per cent in 2012). These results show that water access to Sisonke district households is not on par with KZN; therefore more effort is needed to improve water availability to the households in the district.

11.3 Access to electricity Figure 8 show that electricity connections had increased in the province of KZN from 63.0 per cent in 2002 to 77.5 per cent in 2012. Sisonke’s electricity connection increased substantially from 33.0 per cent in 2002 to 61.1 per cent in 2012. Despite this positive trend, the percentage is still very low with approximately forty per cent of households in the district without access to electricity.

Figure 8: Percentage share of households with electricity connection in 2002 and 2012

Source: Global Insight 2013

12 Tourism

Table 12 represents tourism spending in KZN and Sisonke district in 2002 and 2012. Tourism spending in KZN increased more than doubled between 2002 and 2012. The district of Sisonke also realized a massive increase in tourism spending from about R322 million in 2002 to an estimated R897 million in 2012.

Table 13: Tourism spending in KZN, 2002 and 2012 Tourism spending as a % of KZN Tourism Tourism spending as a % of Tourism spending spending Sisonke Tourism spending 2002 2012 2002 2012 2002 2012 KwaZulu-Natal 13 042 483 28 564 393 100 100 Sisonke 322 417 897 153 2.5 3.1 100 100 Ingwe 31 210 288 539 0.2 1.0 9.7 32.2 Kwa Sani 98 498 131 106 0.8 0.5 30.5 14.6 Greater Kokstad 92 881 155 594 0.7 0.5 28.8 17.3 Ubuhlebezwe 52 370 91 363 0.4 0.3 16.2 10.2 Umzimkhulu 47 459 230 551 0.4 0.8 14.7 25.7 Source: Global Insight 2013

Tourism spending grew by an estimate of 119.0 percent in KZN from 2002 to 2012 whilst in Sisonke it grew by 178.3 percent in the same period. Ingwe local municipality contributed the most with regard to tourism spending at an estimated R288 million (32.2 percent of the district’s tourism spending) followed by Umzimkhulu at 25.7 per cent of the district’s tourism spending. Ubuhlebezwe contributed the least at an estimated R91 million which was 10.2 percent of the district’s tourism spending.

Table 14: Tourism spending as a percentage of GDP in 2002, 2008 and 2012 2002 2008 2012 % % % KwaZulu-Natal 6.8 6.4 5.7 Sisonke 13.0 14.9 14.2 Ingwe 7.9 15.7 28.8 Kwa Sani 64.1 50.6 38.1 Greater Kokstad 15.2 16.3 11.3 Ubuhlebezwe 9.1 8.6 6.1 Umzimkhulu 6.5 10.9 11.1 Source: Global Insight 2013

Table 13 represents tourism spending as the percentage of GDP in KZN and Sisonke district. The province had realized a decline in tourism spending as a proportion of GDP from 6.8 per cent in 2002 to 5.7 per cent in 2012. In Sisonke district tourism spending as a percentage of GDP increased from 13.0 per cent in 2002 to 14.9 per cent in 2008 before decreasing marginally to 14.2 per cent in 2012. Kwa Sani had the highest percentage of tourism

22 spending to GDP at 38.1 per cent in 2012 followed by Ingwe (28.8 per cent). Although it had the highest but it was showing a downward trend from 64.1 per cent in 2002 to 50.6 per cent in 2008.

13. APPENDIX

Table A1: National population size, size of the area and population density by province, 2012

% share of national % share of Population size Area in square km Population Density population National area

Eastern Cape 6 620 100 12.5% 169 063 13.8% 39.2 Free State 2 753 200 5.2% 130 007 10.6% 21.2 Gauteng 12 728 400 24.0% 18 213 1.5% 698.9 KwaZulu-Natal 10 456 900 19.7% 93 378 7.6% 112.0 Limpopo 5 518 000 10.4% 126 042 10.3% 43.8 Mpumalanga 4 128 000 7.8% 76 642 6.3% 53.9 Northern Cape 1 162 900 2.2% 373 351 30.6% 3.1 North West 3 597 600 6.8% 105 076 8.6% 34.2 Western Cape 6 016 900 11.4% 129 475 10.6% 46.5 National Total 52 982 000 100.0% 1 221 247 100.0% 43.4 Source: Global Insight, 2013

Figure A1: Percentage share of population size by province

Source: Global Insight, 2013

Figure A2: Percentage contribution to KZN Real GDP by district municipalities, 2012

Source: Global Insight, 2013

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