KZN second largest contributor to GDP

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This is according to Amrei Botha, head of Business Segment: Business Banking at Standard Bank. The research indicates that KwaZulu-Natal's ability to contribute to the economy despite its land area of only 94,361km² is driven by several factors and accounts for:

• 26.9% of the country's agriculture sector;
  
• 21.6% of South African manufacturing;
  
• 13% of the value added in the country's construction sector;
  
• around 15.7% of the country's electricity, gas and water output - second after Gauteng's 33%;
  
• a share of about 17.8% of the country's retail and wholesale trade, catering and accommodation;
  
• an anticipated 22.3% stake of the nation's transport, storage and communication facilities;
  
• 13.4% of the country's finance, insurance, real estate and business activities; and
  
• at least 13.4% of South Africa's community, social and personal services sector activity.

At a provincial level, manufacturing, trade, transport, and the finance sector are key role players in KwaZulu-Natal's economy. "Important to note is that, agriculture, manufacturing, trade and transport have a comparative advantage, as these sectors are much larger in size in the province's economy than in the national economy."

Annual growth rate

Since 1997, the province's average annual growth rate has, with a few minor exceptions, exceeded that of the country as a whole. According to the current projections its annual growth expectations are very similar to those anticipated for the national economy.

"The manufacturing sector, with its expected contribution of approximately 17.1% to the province's economy ranks it as its fourth largest sector," says Botha.

"Of significance is the fact that this share of the manufacturing sector in KwaZulu-Natal exceeds the size of the manufacturing sector in all the other provinces, as well as in the national economy (12.4%). At a more detailed economic sector level, the province's strong stance in manufacturing is reflected by the comparative advantage it has in eight of the ten manufacturing related sub-sectors."

"Many of the challenges faced by key sectors of the KwaZulu-Natal economy are similar to those experienced elsewhere in the country. However, the overall economic strength and diversification of the provincial economy will ensure that the province remains a key contributor to South Africa's GDP," Botha concludes.