Frontline Edition #1 Dec 2020

Taking care of our most precious assets! It's been 44 years since Ziphakamise became a reality. God had given a group of ladies viz. Rose Anderson,  Social Relief Rosemary Brookes, Ester Alm, Daphne Khumalo and Working with various faith-based and community a few others the vision to start a social and organisations, Ziphakamise assisted over 300 development organisation way back in 1976. deserving people with clothes and food this year Reverend John Harrison became the first CEO and, alone. Various local businesses have donated together with his wife Heather, they laboured to foodstuffs and other goods which are distributed establish the organisation that would grow to what it to the needy. is today – a multifaceted social and development organisation that provides social relief and  Community Support empowers communities through development and The organisation assisted many in the community training. with getting their ID documents, monitoring of SASSA pay-points to ensure that beneficiaries Operating in the Ugu and Harry Gwala Districts were assisted when the government transitioned where the majority of people live in rural, to a new payment system and helped lobby for underdeveloped areas, Ziphakamise makes an improved conditions for grant recipients at the invaluable difference with the help of friends, various pay points. sponsors and affiliates.  Development and Training The organisation recently mourned the loss of Ziphakamise participated in with local schools and Heather Harrison whose commitment and strength Port Shepstone Rotary. were unwavering even during the times of violence. The above is just a drop in the ocean. For the full When Rev. Lulu Bodla was appointed CEO of the picture of the scope of work undertaken by organisation in 2001, it also signalled the move of Ziphakamise, visit their website. John Harrison and his family to the Western Cape. Rev. Bodla has continues to steer to organisation, Like many of the NPOs, they face enormous with the help of a board and his staff, to ensure that challenges. They have staff, vehicle, buildings and a the good work continues. multitude of commitments to meet every month. Although there have been trying times, they Over the years, the organisation has been able to continue to give thanks to the Lord for his provision. expand into various areas of social and community work. If you have resources to spare, Ziphakamise will be glad to receive this from you and put it to good use. Some of their current areas of focus are: They would love to receive a call from you.  Emseni Child and Youth Care Centre. Their contact details: [email protected], Not only does the centre provide holistic Office Number: 039 682 1834 or call Rev.Bodla on development for its charges, they also work to 072 314 2004. reunite the children with their families. The children are sent to school, given assistance with their school workEamnd pproovwideed rwiinthgspo&rtsUpliftment Since 1976 programmes. 101

Rev. Lulamile Bodla 7 decades since its formation, the South Coast Chamber of Commerce and Industry continues to empower local businesses. NHBRC & MBA Registered Ivan Naidoo talks to the newly inducted president, Rev. Lulu Bodla, on his plans for the future of the organisation A new man at the helm of the South Coast Chamber of Commerce and Industry The South Coast Chamber of Commerce and Industry recently elected a new leadership team. Tell us about your team. “Our aim is to also At our annual general meeting at the end of May this to assist and uplift year, a new leadership was elected. I was elected as people, not only the president. Our Constitution provides for two those in crisis with vice presidents and a young woman, Zama Memela, temporary relief but was elected as the first vice president. She is the with knowledge as Managing Director for Gambu Security. We elected well.” Reshma Maharaj as our second vice president. Reshma is the publisher of Enspired Woman magazine and she does a lot to empower women. We also have an executive committee. Earlier in the year we had a total of 12 in the executive committee but due to covid-19 and the lock down, some of the members lost their jobs and they decided not to continue their membership in the executive committee. The Chamber has a long history and its work amongst key stakeholders in the local economy that has often gone unnoticed. Give us a synopsis of what the chamber does. The Chamber, in my opinion, has been doing a very good job. Businesses are growing. We run workshops to empower the people. We try to empower the small businesses in all areas. We also promote businesses in the area and expose them to new ventures to grow their businesses. 102

... South Coast Chamber of Commerce and Industry in the spotlight You've got a two-year tenure as president. Rev. Lulamile Bodla During my term of office, I want to network with What are your key focus areas during this time? other chambers within our province, in our country What are you going to be focusing on? and internationally. That will be a great achievement for the Chamber. Firstly, I am looking to increase the membership of the NHBRC & MBA Registered Chamber. I'm looking forward to that. Then it is our I am also committed to uplift, empower and mentor responsibility to empower the existing businesses and small businesses. One of the things I’ve learned is that to promote our members and to help them in their when you engage small businesses to do work, you marketing strategies. have to make sure that we uplift and promote them. It is a journey with small businesses. They need We want to get to know our members better; and to mentoring. The same with whomever we are training; know exactly what they do in their businesses. We do it must not be a one off thing. It must be meet many other people on different platforms so, continuously. It can take two years, three years or with this knowledge we can seize the opportunity to five years. We go with the business up until we are promote our members. happy that they can be able to stand by themselves. We want to see our businesses making money Thirdly, it is very important that the Chamber serves as because being in business is about a profit. This will the mouthpiece of our members in the economy, allow the business to expand and grow. particularly in our district. We want to help our members grab the opportunities that are coming up in lastly, I want to embark on fundraising for the our district. Many of our businesses are not happy that Chamber. We need to employ a full time businesses from outside our area of operation are administrator. We need to have our own assets, getting opportunities before them. We believe that which we can be able to help other people. At the local businesses must get priority. moment do not have the assets to do that or nor do we have the tools to help people. We must be able to We need Chamber members to support each other. I'm travel to the villages and townships to meet the very passionate about this. businesses and give them the support they need. For example, Ziphakamise, as a member of the Contd. Chamber, needed an electrician to do work at our premises. I said, let us first look at the database of the Chamber and we enlisted the services of Kenny’s Electrical. We now use Kenny’s Electrical as a service provider for all our electrical issues and needs. What does that mean? It means that Ziphakamise is a member and so is Kenny’s Electrical. So the money goes it is rotating within the members of the chamber. Another example: Ziphakamise needed accommodation for people in an organisation we are working with. We realized that one of our Chamber members has an accommodation establishment. We came to an arrangement and our guests were very pleased with the establishment. As a result, more people have requested to go to that place. Our members have already planned to use that same venue for some planned events. I’m passionate about this type of networking and support. I see the same thing happening for future organised training programs and workshops. 103

... South Coast Chamber of Commerce and Industry in the spotlight In doing what the chamber does best, it does its Rev. Lulamile BodlaWhat would you like to see changed in the work with other partners. Who are they and economic environment to accelerate how do you relate to them? transformation? It is very important for the chamber not to work in It is very important to expand the economy. The isolation. We work with the other business formations economy must not stay in cities and towns. It must go locally, for example, the Ugu Association of Business, alsoNtHoBtRhCe &toMwBnAshRipesgiasntedretdo the villages, because that's Margate Business Association and Women in Business where the people are. And it is very important for those amongst others. And we wish to strengthen the people to buy local because we do support the Buy local working relationship with these formations. campaign. But the Buy Local campaign is not about a person staying in Izingolweni coming to Port Shepstone Of course it is our endeavour that we don't exclude the to buy goods. No, they must get whatever they want in NPO sector. The Chamber itself is an NPO and we Izingolweni. For example, when it does not have a petrol need also to take care and help and assist other NPOs. station. That is a concern for us as a Chamber because Big businesses talk about CSR - corporate social that business opportunity has to be taken up by a black responsibility. We want to have our NPO sector access person in the area to provide the service to those this support from big businesses. people. Those people now are coming to Paddock or Port Shepstone to buy petrol. And when you get to a At the moment the Chamber is working with 2 local petrol station, it's not only about fuel as there are so crèches; which is a commitment we made at our 2019 many other things that you do there. golf day. It is unfortunate that this year we are not going to be able to have a golf day due to the lock If you have a puncture, you go to the garage to sort that down. out quickly and then you continue on your way. That is part of the economy. With such events, our aim is to also to assist and uplift people, not only those in crisis with temporary relief So I'm saying black people must be part of economic but with knowledge as well. development. It must not be some people somewhere coming from outside our area of operation to our district In supporting the NPO sector we ask questions: How to say to us, ‘This is the way to develop the small do they manage their organisation? Are they managing businesses’ or ‘This is the way the economy has to be it according to the way they are supposed to? done’. Secondly is funding for those organizations, many The Chamber is working with government entities and organizations in particular in the South Coast and not the district and local municipalities to see to it that the getting funding. And the only reason for that is that economy is inclusive. they are failing to do proposals. They are failing to do reporting. If they do receive funding, they are failing to This will avoid the situation of migration from the rural manage the organisation according to their acceptable areas into the cities and towns. Our towns cannot standards. provide the basic services to the people because the population is more than the infrastructure which is there In particular, those very small NPOs in the rural areas already. and in the townships. So many of them have closed down due to the fact that they cannot carry on, and Sure, there is no infrastructure in the rural areas. It is our you find that the bigger ones are carrying on with no responsibility to say to the government entities: Go and problem. Why? Because of the structures which are in put the infrastructure in those areas, then that will place for them and the integrity they have. So we want create jobs for those people. to see the small NPOs also operate with such systems and with integrity so that they can be able to access Yes, many of the people in rural areas do not have skills. funding. But those who can be labourers, let them be given their opportunity to earn something. They can be given skills The Chamber is working with equal to their level of education so that they can sustain government entities ……. to see to themselves. it that the economy is inclusive. We do have a problem in our country of maintenance of our infrastructure. Why? Because people are not given skills with where they live so that they are be able to maintain their tap water pipes, the electric lines, you name it. 104

.... South Coast Chamber of Commerce and Industry What is your prognosis on the economy, let's say in 10 years’ time? Rev. Lulamile Bodla The backdrop to that is that we've been So we are saying to our partners who are bringing in economic in this democracy for 26 years and we development programs to involve the local people. are still severely lacking in the An example is the N2 Wild Coast road has been stuck for years transformation. because the local people don't agree because it came with people There will be progress in the economy if the from outside. The locals were not part of a bigger picture. communities, the civil society and the NPO sector is involved. When it comes to They were told that they will be employed. But how are they gNoHiBnRgC & tMraBnAsfRoergmisatteiroend, you need people. It's not to be employed? How will they benefit from this infrastructure? rocket science to implement transformation. They are not part of their day to day development. At the end of But it is made very complicated to the the day, the big contractors, once they finish the work, will move away. Who is going to maintain the place? affected people. To me, as long as the people of that locality are involved in every step that That is why Sanral is saying that the community is going to be we are taking forward in building our nation, involved. And we, as the Chamber, are encouraging that way of then it will happen that the economy will thinking. transform. We cannot have a certain group of people getting wealthier and a certain group of people getting poorer. That is what is happening at the moment and that is what has to be changed. Let's put it to those who are wealthy, that they must help the ones who are poor. Not by giving them money; but that everybody must work hard for what he earns. I'm not in agreement that people, especially the youth, are given R350 for staying at home instead of creating jobs for these people; because they need jobs if they are to progress in life. For me, building houses for people is a no-no. How do you become proud of having worked hard for your house? If the government is building you a house, that to me is not development. That to me is not transformation. I would like to see people having their hands dirty in every corner, in particular the young people who have got still so many years to live. They are the people who must have a vision. Where we are now and how do we want to get where we want to be? They can only do that if they are challenged academically and skilfully. This is a big problem in our country. We have got so many academics and very few skilled people. To grow economy, you need skilled people; not necessarily academic people. And we don’t want wealthy people to become poorer, because they are going to cause problems if they become poorer. But let's help those who needs help. But you need people to help you to uplift yourself. And then when you are uplifted, it's when you will be able also to uplift others. That's how economic transformation can be of benefit to everybody. 105



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Statistics & Comparative Information of the Ugu District and its Local Municipalities in relation to KZN and The Country Notes: All information in this section has been extracted from the websites and reliable documented sources. However, readers are requested to note that this information may become outdated and are therefore advised to verify the accuracy of this information when it is used. Please note the disclaimer on Page 4. NHBRC & MBA Registered Ugu in a Nutshell The Ugu District Municipality is a Category C municipality situated in the far south of KwaZulu-Natal. It lies south of Durban, bordered by a coastline of 112km. The district is made up of four local municipalities: Umdoni, Umzumbe, Ray Nkonyeni and Umuziwabantu, all of which have played a critical role in the cultivation of the district’s economy. The Ray Nkonyeni Municipality is the ultimate economy booster due to its location. Commercial agriculture in the district produces one-fifth of all bananas consumed in South Africa, with numerous companies successfully exporting these and other products to some of the most exclusive packers in the United Kingdom. The Ugu District is the proud owner of Blue Flag Status beaches, which have marked tourism as a major economic cultivator. The improvement of its infrastructure, education, health and recreational facilities contributes immensely to its appeal. The nurturing of the local economy highly features tourism and agriculture, and includes the district’s very own Ugu Jazz Festival. It also includes other renowned annual activities, such as the Africa Bike Week, which have gained momentum worldwide. Area: 4791 sq. km (3.8% of KwaZulu-Natal) Cities/Towns: Harding, Hibberdene, Margate, Pennington, Port Edward, Port Shepstone, Scottburgh/Umzinto North, Southbroom Main Economic Sectors (2019): (20.2%), Personal Services (17.5), Wholesale & Retail Trade and Catering & Accommodation (15%), Finance, Real Estate and Business Services (11.9%), Manufacturing (10.7%) Agriculture, Forestry and Fishing Demographic 759569 (2020) (6.6% KZN) Population: 1.18% (2019) Population Growth: 93 Gender Ratio (males/100 females): Labour Market 27.8% (2018) EAP (%): 28.4% (2018) Unemployment Rate: 47.4 % (2018) Labour Force Participation Rate: 0.63 (2018) Development Indicators 0.59 (2018) HDI: Gini Coefficient: 4.4% (2020) 8.8% Economic GDP (Share of KZN): R29418.92 (2020) GDP Growth: (2020 Projected) www.ugu.gov.za GDP per capita: Website

Ray Nkonyeni The Ray Nkonyeni Local Municipality (previously Hibiscus Coast Local Municipality) is a Category B municipality situated within the Ugu District in the KwaZulu-Natal Province. It is the largest of four municipalities in the district, making up a third of its geographical area. It covers an area of approximately 90km of coastline comprising 21 beaches, and extends 30km inland, covering a vast, rural area under the leadership of six tribal authorities. It has its administrative seat in Port Shepstone and is the most concentrated economic hub within the district. Beaches of world-class quality are to be found along the entire seaboard, with Marina, Trafalgar, Lucien, Southport, Umzumbe and Ramsgate beaches recognised as fuNlHl BBlRuCe&FlMagBbAeRaecghiestse.red The coastline is dotted with numerous small towns, many of which serve as seasonal recreational hubs in areas such as Port Shepstone, Umtamvuna/Port Edward, Margate, Hibberdene and Impenjati/Southbroom. Area: 1487 sq. km (31% of Ugu) Cities/Towns: Hibberdene, Margate, Port Edward, Port Shepstone, Southbroom Main Economic Sectors (2019): Personal Services (21%), Wholesale & Retail Trade and Catering & Accommodation (19.3%), Finance, Real Estate and Business Services (16.2%), Agriculture, Forestry and Fishing (9.93%), Manufacturing (9%) Demographic 432052 (2020 Projected) Population: 1.36% (2020 Projected) Population Growth: Labour Market 61% (2016) EAP (%): 26% (2019) Unemployment Rate: Economic 61.3% (2020 Projected) GDP (Share of Ugu): 8.9% (2020 Projected) GDP Growth: R31806.89 (2019) GDP per capita: Website: www.rnm.gov.za Umdoni The Umdoni Local Municipality is a Category B municipality located within the Ugu District in the KwaZulu-Natal Province. It is the smallest of four municipalities in the district, accounting for just under a quarter of its geographical area. It is made up of 10 wards, most of which are rural areas. The municipality can be divided into three major land uses, being commercial agriculture, traditional authority areas and coastal urban nodes. The coastline stretches approximately 40km. The town of Scottburgh is approximately 50km from the city of Durban and 65km from Port Shepstone. Area: 994 sq. km (21% of Ugu) Cities/Towns: Pennington, Scottburgh/Umzinto North Main Economic Sectors (2019): Manufacturing (20.9%), Personal Services (17.8%), Finance, Real Estate and Business Services (15.7%), Wholesale & Retail Trade and Catering & Accommodation (11.9%), Transport, Storage and Communication (8.5%) Demographic 176194 (2020 Projected) Population: 0.94% (2020 Projected) Population Growth: Labour Market 58.7% (2016) EAP (%): 31.5% (2019) Unemployment Rate: Economic 12.9% (2020 Projected) GDP (Share of Ugu): 9.1% (2020 Projected) GDP Growth: R16386.60 (2019) GDP per capita: Website:www.umdoni.gov.za

Umuziwabantu The Umuziwabantu Local Municipality is a Category B municipality located on the western boundary of the Ugu District in KwaZulu-Natal. It lies at the foot of the Ingeli Mountain Range and the Umtamvuna River marks the southern boundary. It shares its borders to the north, west and south with the Eastern Cape, and to the east with the Umzumbe and Ray Nkonyeni Municipalities. It is one of four municipalities in the Ugu District. Umuziwabantu Municipality consists of a largely rural area. Features include an urban development (the town of Harding), farmland, commercially grown forests, and traditional authority areas. Apart from the town of Harding, which is the seat of the municipality, 56% of the municipal area is occupied by individually owned commercial NHBRC & MBA Registered farms and the Weza afforestation region. The six tribal authority areas (KwaMachi, KwaJali, KwaMbotho, KwaFodo, Dumisa and Bashweni) make up 42% of the municipality’s land. Area: 1089 sq. km (23% of Ugu) Cities/Towns: Harding Main Economic Sectors (2019): Personal Services (20.9%), Wholesale & Retail Trade and Catering & Accommodation (20.5%), Agriculture, Forestry and Fishing (20.2%), Manufacturing (9.3%), Finance, Real Estate and Business, Services (8%) Demographic 134103 (2020 Projected) Population: 1.27% (2020 Projected) Population Growth: Labour Market 50.7% (2016) EAP (%): 30.8% (2019) Unemployment Rate: Economic 5.5% (2020 Projected) GDP (Share of Ugu): 8.1% (2020 Projected) GDP Growth: R9061.65 (2019) GDP per capita: www.umuziwabantu.gov.za Website: Umzumbe The Umzumbe Local Municipality is a Category B municipality located along the coastal strip of the Indian Ocean between uMthwalume and Mfazazana. It is one of four municipalities in the district, making up a quarter of its geographical area. Umzumbe Municipality is highly active in the areas of tourism, heritage and agricultural produce. The dramatic scenery of the municipality includes picturesque mountains, winding rivers and well-cultivated forests, offering sound ecotourism. Umzumbe Municipality boasts numerous development opportunities, available to people of Umzumbe and to outside investors. The municipality has placed tourism at the top of the agenda. There are currently two tourism sites that are open to the public, namely the Ntelezi Msani Memorial Project and Isivivane sikaShaka Tourism Site. The seashore offers a wealth of opportunities for people interested in, among others, fishing, leisure, and water sports. Area: 1221 sq. km (25% of Ugu) Cities/Towns: None major Main Economic Sectors (2019): Personal Services(18.9%), Manufacturing (15.8%), Wholesale & Retail Trade and Catering & Accommodation (14.5%), Finance, Real Estate and Business Services (12.9%), Agriculture, Forestry and Fishing (12.4%) Demographic 17220 (2020 Projected) Population: 1.66% (2020 Projected) Population Growth: Labour Market 53.3% (2016) EAP (%): 49.1% (2019) Unemployment Rate: Economic 20.3% (2020 Projected) GDP (Share of Ugu): 8.6% (2020 Projected) GDP Growth: R255168.26 (2019) GDP per capita: Website: www.umzumbe.gov.za

Development 1.0 HDI The HDI is a statistic developed and 0.9 compiled by the United Nations to 0.8 The Human Development Index was measure a countries' levels of social and designed to place emphasis on individuals, economic development. It is composed more precisely on their opportunities to of four principle areas of interest: mean realise satisfying work and lives. Evaluating years of schooling, expected years of a country's potential for individual human schooling, life expectancy at birth, and development provides a supplementary gross national income per capita. This metric for evaluating a country's level of index is a tool used to follow changes in development besides considering standard development levels over time and to economic growth in statistics. South Africa compare the development levels of showed rapid increase in its HDI from 2013- different countries. 2015 which seemed to have almost plateued before dropping back to its initial 2013 index in 2019. Higher is better 0.7 0.705 0.66 0.6 0.63 0.62 Human Development Index 0.5 0.4 South Africa 0.3 KwaZulu-Natal Ugu 2013 2014 2015 2016 2017 2018 2019 KwaZulu-Natal and Ugu did not have as steep an increase but was more steady in it's growth until 2017. KZN also dropped in 2019 but not as severely as the national average. Overall, the Ugu average seems to trail the provincial average, both of which are lower than the national average. By 2018, the eThekwini had the highest average of 0.7 with the lowest being Zululand and Umkhanyakude with 0.59. Ugu boasts the third highest index after Umgungundlovu at 0.65. Despite its frequent use, the HDI has been criticized by social advocates for not representing a broad enough measure of quality of life and by economists for providing little additional useful information beyond simpler measures of the economic standard of living. 0.2 The KZN South Coast has the only MSA-approved racing track in KZN 0.1 Dezzi Raceway in Port Shepstone is the only Motorsport South Africa (MSA)-approved racing track in the province, and the host of numerous prestigious motorsport events. The track includes two purpose-built drift circuits for high-octane entertainment! 0

GINI COEFFICIENT For countries with a low degree of inequality they average within the 0.2-0.3 range, and conversely for a high degree of inequality, they average within 0.5-0.7. The gini index should not be mistaken for fairness or an indication of wealth. Inequality within South Perfect Inequality 1 Africa was largely defined along racial lines but has Gini Coe cient, 2018 since been more increasingly defined within population groups. The country is struggling to reduce the gap between the rich and the poor. The national gini index stood at 0.65 in 2013 and is currently at 0.63 in 2019. KZN and Ugu followed suit, however, Ugu has had better success coming from 0.63 in 2013. Ugu has the fifth lowest gini index, with the lowest being Umzinyathi and 0.64 0.61 Zululand at 0.57 and the highest being 0.59 Umgungundlovu, King Cetshwayo and eThekwini at 0.61. South Africa The Gini index, or Gini coe cient, is a measure of the KwaZulu-Natal distribution of income across a population developed by Ugu the Italian statistician Corrado Gini in 1912. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, wealth distribution among a population. The coe cient ranges from 0 (or 0%) to 1 (or 100%), with 0 representing perfect equality and 1 representing perfect inequality. Values over 1 are theoretically possible due to negative income or wealth. Perfect Equality 0 DEPENDENCY RATIO A high dependency ratio implies that a large proportion of the government's expenditure is on services that are mainly used by old and young population including health, pension, social security and education. This is detrimental to the economy in the long run as it results in fewer resources available for investment in infrastructure that will expand the economy’s productive capacity. At 2018, eThekwini reported the lowest average of 43.12, Ugu the sixth lowest, and the largest being Harry Gwala at 80.26. Dependency Ratio % South Africa Ugu 2018 KwaZulu-Natal 2016 2017 2014 2015 The dependency ratio is a measure of the 71.18 72.13 number of dependents aged zero to 14 and over the age of 65, compared with 58.31 58.66 the total population aged 15 to 64. This 52.22 52.43 demographic indicator gives insight into the number of people of non-working The KZN South Coast witnesses annual the age, compared with the number of those Humpback Whale migration of working age. It is also used to Between June and December, more than 30 000 understand the relative economic burden Humpback Whales participate in the annual migration of the workforce, and has ramifications which can be viewed from any of the 58 KZN South for taxation. Coast beaches, and the many oceanside restaurants The dependency ratio is also referred to and cafés. as the total or youth dependency ratio.

Demographics NATIONAL POPULATION COMPOSITION Population studies are vital to many businesses and is an important aid to the govenrment in making decisions concerning allocation of funds for education, health and other basic services. The study of population dynamics and distributions is called demography. As seen in the graph to the left, the national population is estimated to be just over 59.6 million. This can be split into the four major racial groups of which black african is the largest. There is about 2.2% more females 2.6% than males. This yields 96 males per 100 females. 8.8% 7.8% KwaZulu-Natal has the second largest population of 11.5 million people, as seen in the graph below. The 80.7% 2.7% 7.9% 2.5% eThekwini district alone contributes to just over a third of the provinvial population. Ugu has the fifth 8.8%7.8% 8.8% largest population and Harry Gwala the least. The gender ratio in eThekwini is most equal with 99 48.9% 51.1% 80.8% males per 100 females. Ugu has 93 males per 100 females, which is the fourth most equal, and 59 622 350 then uMzinyathi with the largest disparity between the male-to-female proportion at 85 males to 100 females. 80.8% Within Ugu, the Ray Nkonyeni contributes the largest share of 56.9% and Umzumbe the least with 2.3%. The racial distribution between each gender closely follows the national total population distribution. The Indian/Asian group is the only group with more males than females. African Black Male Female Coloured Indian/Asian White South African Population Composition, 2020 Ray Nkonyeni 56.9% Umdoni 23.2% GP King iLembe 26.0% Cetshwayo 5.9% Umuziwabantu 8.6% uThukela 17.7% 6.3% FS Amajuba Umzumbe 4.9% 4.9% Ugu 2.3% EC 6.6% 11.3% MP SA KZN uMkhanyakude 7.8% 59 622 350 6.1% 19.3% uMzinyathi 5.0% WC Zululand 11.8% 7.6% NW NC LP eThekwini Harry 6.9% 2.2% 9.8% 34.7% Gwala 4.4% uMgungundlovu 10.0% South African Population Distribution by Region, 2020

AVERAGE POPULATION GROWTH Over the past five years, KwaZulu-Natal has maintained a positive population growth, as shown in the figure below. Most districts have seen a postive growth except for Zululand and Harry Gwala. The Ugu district experienced the largest positive growth of 5.18, which is more than double of the second highest of 2.02 by eThekwini. The eThekwini and uMgungundlovu districts, although having the highest share of the population, have been declining in population growth over the period under review. The most likely reason behind Ugu's high growth rate is due to in-migration which is due to relocation in search of better economic opportunities. Within the Ugu district, the largest population growth was seen by the Ray Nkonyeni municipality with 5.37. The municipality with the lowest growth is Umzumbe, however, comparitively, it is still higher than the eThekwini average. 5.18 5.37 5.28 4.95 Population growth refers to an 2.02 2.35 increase in the number of people that 1.34 1.22 1.49 reside in a country, state, county, or city. To determine whether there has 0.91 been population growth, the following 0.8 formula is used: (birth rate + immigration) - (death rate + 0.64 0.46 0.47 emigration). Businesses and governmental bodies use this -0.21 information to make determinations -0.5 about investing in certain communities or regions. KZN Ugu Average Population uMgungundlovu Growth %, 2016-2020 uThukela uMzinyathi Amajuba Zululand uMkhanyakude King Cetshwayo iLembe Harry Gwala eThekwini Ray Nkonyeni Umdoni Umuziwabantu Umzumbe The KZN South Coast has the highest gorge swing in the world The Wild Gorge Swing in Oribi Gorge is the highest swing of its kind in the world. Located at the top of Lehr’s Waterfall, the swing is the equivalent of launching off a 55-storey building (165 metres). A definite bucket list addition for any thrill-seeker. Umzumbe ELIGIBLE POPULATION Umuziwabantu The eligible range in South Africa is from 16-64 years. A Umdoni region with a higher proportion has more economic output Ray Nkonyeni Ugu potential. Some people do fall outside the working-age KZN range and they aren't considered as part of the eleigible South Africa population. This is one of the differences between working- Eligible Population, age population and working-population. The national average is higher than the provincial and 2020 down to the municipal level, therefore there is less working potential available. The relative differences are compared in the graph on the left. 65.3% Eligible popuation, also known as The working-age population, 62.4% is the total population in an area that is considered able and 60.3% likely to work based on the number of people in a 61.0% predetermined age range. The working-age population 58.7% measure is used to give an estimate of the total number of 50.7% potential workers within an economy. 53.3%

GVA Economy It is important to identify industries whic add the most to the Gross value added (GVA) is an economic local economy in order to make relevant decisions regarding productivity metric that measures the prioritisation of industries. The most contributing industries in contribution of a corporate subsidiary, KZN are personal services, finace and trade which account for company or municipality to an economy, 58.8% of the local GVA. The least contributing are mining, producer, sector or region. electricity and construction. The national GVA was reported Gross value added provides a rand value to be R1.115 trillion in 2019, of which 41.3% was contributed for the amount of goods and services that by KwaZulu-Natal at R460 billion. have been produced in a country, minus the cost of all inputs and raw materials that The graph below shows the contribution of each municipality are directly attributable to that production. to each industry. The highest GVA for each sector almost GVA thus adjusts gross domestic product completely dominated by the eThekwini municipality, except (GDP) by the impact of subsidies and taxes for the agricultural and mining industries which are (tariffs) on products. dominated by uMgungundlovu and King Cetshwayo respectively. Share of GVA contribution to KZN per Industry %, 2019 ↑ MG 20.15 ↑ KC 43.21 ↑ ET 65.78 ↑ ET 50.14 ↑ ET 63.14 ↑ ET 64.26 ↑ ET 68.90 ↑ ET 67.38 ↑ ET 57.46 ET 15.20 AJ 16.20 KC 9.71 MG 15.07 MG 10.07 MG 10.13 MG 9.38 MG 9.68 MG 12.96 UG 10.51 ET 14.11 MG 8.06 UT 8.91 KC 6.25 UG 5.40 KC 6.34 KC 4.49 KC 5.42 KC 10.07 ZL 10.56 IL 3.98 ZL 4.92 UG 5.89 KC 4.64 UT 3.15 UG 3.79 UG 4.34 MK 9.47 MG 3.63 UG 3.27 UG 4.82 UT 3.16 UT 3.44 UG 3.12 ZL 3.02 ZL 3.96 IL 8.09 UT 3.52 UT 3.23 KC 3.86 IL 2.50 HG 2.31 ZL 2.01 UT 2.74 UT 3.65 HG 7.33 MY 2.85 AJ 2.64 MK 3.70 ZL 2.30 ZL 2.23 AJ 1.81 IL 2.47 MK 3.18 UT 6.63 MK 2.36 MK 0.97 AJ 2.57 MK 2.09 MK 2.17 IL 1.68 AJ 2.25 AJ 2.73 ZL 5.86 IL 1.70 ZL 0.91 HG 2.27 AJ 1.98 IL 2.05 MK 1.47 MK 1.91 HG 2.27 MY 4.27 UG 1.50 HG 0.79 MY 2.14 HG 1.51 AJ 1.92 HG 1.09 MY 1.48 MY 2.05 AJ 2.42 HG 0.36 MY 0.66 IL 1.59 MY 1.11 MY 1.45 MY 1.05 HG 0.79 IL 1.99 AFF MQ MAN PER EGW CON TRD TRN FIN MY uMzinyathi AFF Agriculture, Forestry and Fishing The KZN South Coast is also known as ‘The Golf HG Harry Gwala MQ Mining and Quarrying Coast’ AJ Amajuba MAN Manufacturing With 11 golf courses MK uMkhanyakude EGW Electricity, Gas and Water alongside oceans and ZL Zululand CON Construction coastal forest, there is a IL iLembe TRD Wholesale & Retail Trade and Catering & green for every golfer. UT uThukela The diverse courses can UG Ugu Accommodation be found at Umkomaas, TRN Transport, Storage and Communication Scottburgh, Selborne KC King Cetshwayo Park, Umdoni, Port MG uMgungundlovu FIN Finance, Real Estate and Business Services Shepstone, Harding, ET eThekwini PER Personal Services Margate, Southbroom, San Lameer, Port Edward Ugu reported a GVA total of R20.2 billion and its highest contribution was to and the Wild Coast Sun. the agricultural and trade industry, being ranked third in each. Its least was to the mining industry being place second last. Ugu is in the top five for the rest. The graph below shows the contribution of each municipality to the Ugu district. The Ray Nkonyeni municipality dominates contribution in each sector which is constistently followed by Umzumbe. Ray Nkonyeni lowest contribution is in the manufacturing industry at 46.42%.

Share of GVA contribution to UGU per Industry %, 2019 RN 57.25 RN 74.26 RN 46.42 RN 52.65 RN 70.81 RN 67.96 RN 62.07 RN 66.11 RN 64.03 UZ 23.51 UZ 17.89 UZ 26.73 UZ 32.84 UZ 17.3 UZ 16.81 UZ 19.47 UZ 17.45 UZ 18.94 UW 10.32 UW 4.14 UD 22.63 UD 11.20 UD 8.53 UD 8.85 UD 13.46 UD 13.53 UD 11.39 UD 8.92 UD 3.72 UW 4.22 UW 3.31 UW 3.36 UW 6.39 UW 5.00 UW 2.91 UW 5.64 AFF MQ MAN EGW CON TRD TRN FIN PER UD Umdoni The KZN South Coast is home to the smallest desert in the world UZ Umzumbe Situated just 10 kilometres from Port Edward is the Red Desert. Stretching 200 metres in UW Umuziwabantu diameter, this recently-proclaimed nature reserve is also the world’s smallest desert, and RN Ray Nkonyeni the site of many archaeological discoveries. GDP Gross domestic product (GDP) is the total monetary or market value of all the finished KwaZulu-Natal is the second largest contributor to the goods and services produced within a national GDP after Gauteng. The forecasted contribution to country's borders in a specific time period. the 2020 annual national contribution is 35.95%. The As a broad measure of overall domestic reported estimations for the annual provincial to municipal production, it functions as a comprehensive GDP for 2019 is shown in the graph below. It is no surprise scorecard of a given country’s economic that the eThekwini dominates in contribution to the health. The calculation of a country's GDP provincial GDP. Following quite far behind are encompasses all private and public uMgungundlovu, King Cetshwayo and the Ugu district. consumption, government outlays, Within the Ugu district, the Ray Nkonyeni municipality investments, additions to private dominates GDP contribution having supplied about 61.39% inventories, paid-in construction costs, and of the districts GDP. The Ray Nkonyeni district, which is the the foreign balance of trade. recent merging of the Hibiscus Coast municipality and the Ezinqoleni municipality in 2016 after the municipal elections, is no doubt the most prosperous of the four municipalities. District contribution to Provincial GDP %, 2019 ET 60.68% HG 1.74% KZN IL MG R504 165 124 184 2.81% 10.64% KC UT 6.88% 3.56% MY Ugu 1.55% AJ ZL 4.38% 493 RN 2.54% 2.83% 049 61.39% R22 084 UD UZ UW 12.95% 20.23% 5.43%

SECTORIAL CONTRIBUTION TO The KZN South Coast is an affordable holiday destination REGIONAL GDP With so many unique, family-friendly holiday activities, and a variety of accommodation options, the KZN South Coast is A sectorial view of the GDP provides important also an incredibly affordable domestic destination for the insight into which industries drive a region's entire family. domestic production. A region can boost their With 2020 proving a financially-constrained time for many decision-making power by identifying the South Africans, the area is emerging as a prime holiday spot industries which give the largest contribution for those wanting to maximise on family time, without to the local economy. The largest contributors breaking the budget. to the national GDP are finance, trade and manufacturing which account for 46.9% of the total GDP. The graph below shows the contribution of each industry to the respective region. The largest contributors to the provincial GDP are personal services, finance and manufacturing which account for 53.7% of the GDP and the largest for Ugu are personal services, trade and finance which account for 52.7% of the GDP. For the Umdoni district the largest contributors are manufacturing, personal services and finance which account for 54.3%; for the Umzumbe district they are personal services, manufacturing and trade which accounts for 49.2%; for the Umuziwabantu district they are personal services, trade and agriculture which accounts for 61.7% and lastly for the Ray Nkonyeni district, the major contributors are personal services, trade and finance which accounts for 56.6% of the local GDP. Sectorial contribution to Regional GDP %, 2019 Agriculture, Forestry and Fishing 7.3% 12.4% 4.4% 9.9% 20.2% 1.7% Mining and Quarrying 0.2% 0.5% 0.6% 0.7% 0.4% Manufacturing 15.8% 20.9% Electricity, Gas and Water 10.6% 9.3% Construction 9.0% 11.9% Wholesale & Retail Trade and 16.0% 2.0% 1.9% 11.9% 2.2% 3.5% 14.5% 3.9% 1.3% 1.9% 5.3% 3.5% 4.5% 3.3% 6.1% Catering & Accomodation 8.5% 20.5% Transport, Storage and 7.9% 19.3% Communication 7.5% 8.3% 15.7% Finance, Real Estate and Business 17.5% 14.2% 11.5% 8.2% Services 8.1% 12.9% 17.4% 88.6.%5% 16.2% 20.4% 15.0% Personal Services 20.2% 17.8% Taxes less subsidies on products 12.4% 18.9% 9.0% 20.9% 8.1% 21.1% 7.5% KZN Umdoni Ugu Umzumbe Umuziwabantu Ray Nkonyeni The key reason as to why personal services is in the top three main contributors from the provincial down to the municipal level is probably due to the government's strategic objective to be at the centre of econmonic growth through investing in infrastructure, social grant assistance and through facilitating general economic development. The mining industry is the poorest performing contributing less than 1% in all Ugu municipalities and within the Ugu district. The reasons for such performance could be due to the impact ofthe National Credit Act, especially in the construct sector, electricity supply shortages, competition from cheap cement imports and recently occuring local and global economic recessions. The sector is highly capital intensive and requires market stability to encourage investment.

GDP GROWTH In the second quarter of 2020 , the quarter-on-quarter, seasonally adjusted and annualised industry growth showed a 51% contraction in the national GDP. All industries, except the agricultural industry, suffered a deficit. The major contributors to the negative growth was construction at -76.6%, manufacturing at -74.9%, mining at -73.1%, transport and communication at -67.9% and trade at -67.6%. Although the primary sector contracted by 59.1%, the agricultural industry reported a 15.1% expansion due to increased production for fields crops, horticultural products and animal products. However, this was offset by the decreased production for PGMs, gold, iron ore, chromium and coal in the mining industry. There was a net reduction of 72% in the secondary sector. This due to the fact that all three industries also experienced a reduction. Basic iron, steel and metal products, food and beverages, pertoleum and chemicals were the primary contributors to the dragged growth in the manufacturing industry. Regional GDP Growth %, 2010-2020* 6 0.55% 3.37% 0.15% 3.73% 0.4% -0.06% 1.81% 4 3.57% -0.42% 1.41% -1.13% 2 3.04% South Africa -8.85% 0 KZN -8.97% -2 Ugu -4 -17.1% -6 -8 -10 -12 -14 -16 -18 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ugu Municipality's GDP Growth %, 2010-2020* 6 5.26% 4.66% 3.52% 4 3.71% 2 -0.24% 3.33% 0.21% 2.56% -0.26% 2.48% -1.19% 0 1.84% -0.83% -1.26% -0.96% -2 -2.6% -4 -6 Ray Nkonyeni -8.11% -8 Umdoni -8.59% Umuziwabantu -8.94% -10 Umzumbe -9.14% Euro Arab Spring Domestic Drought Covid-19 Fiscal Debt Crisis Pressure

A fall in the distribution of electricity and water consumption pulled the overall growth of the electricity, gas and water industry down; and lastly a severe decrease in the construction industry due to reduced activity for residential buildings, non-residential buildings and general construction work. The tertiary sector dropped by 40% due to all related industries experiencing negative growth. All trade activities reduced; the same for land and air transport and transport support services. Lower activty has been reported in financial intermediation, insurance and pension funding, auxiliary activities and other business services. The government industry reported decreased activity mainly due to decreased employment in civil services. Lastly personal services like fitness centres, hairdressers, and sporting and recreation activities were prohibited under lockdown. The annual GDP growth over the last eleven years is shown in the graphs above. We can see that there has been a steady decrease in the national, provincial and Ugu district GDP. However, after the domestic drought there was a prominent increase, this is especially true for the Ugu district. This was because all Ugu municipalities experienced increased activity. The most activity was seen in the Umuziwabantu municipality. However, this was a short boon since by the next year Ugu and all its municipalities suffered a significant contraction of their regional GDP, with the Umuziwabantu municipality falling the most. At all regional levels, the GDP severely dropped from 2019 due to the Fiscal pressure and foremostly the new regulations regarding activity to curb the spread of the COVID-19 virus. The projected GDP for 2020 shows the furthest drop in GDP activity in the past eleven years. Of the eleven districts in KwaZulu-Natal, Ugu experienced the fourth largest annual GDP reduction for 2019-2020. It is preceeded by Amajuba at -9.24%, eThekwini at -9.35% and King Cetshwayo at -10.14% which took the hardest hit. All districts did report a reduction, with the smallest reduction belonging to the uMzinyathi district which showed a -6.09% GDP contraction. PER CAPITA GDP GDP per capita is an important economic indicator which Per capita GDP is a global measure for gauging the is used to guage the standard of living within a country. It prosperity of nations and is used by economists, tells you how prosperous a region feels to each of its along with GDP, to analyze the prosperity of a citizens. The GDP amount per region cannot really be country based on its economic growth. Per capita compared beyond determining the economic output of a gross domestic product (GDP) is a metric that breaks region. A large country like the United States of America down a country's economic output per person and is will typically generate more economic activity which will calculated by dividing the GDP of a country by its result in a higher GDP; but the GDP per capita shifts the population. focus from the total contribution to the indivual contribution. In essence how industrious is each person to Higher is better their respective economy. This metric can be used to compare the economic value of the people within a 77.15 21.41 region. 17.50 44.17 From the graph on the right, the national GDP per capita was R21 410. The provincial average was calculated to be 21.01 ET SA KZN 29.42 47.15 24.93 more than double at R44 170. The eThekwini municipality HG UG MG UT reported the highest GDP per capita at R77 150. Ugu ranked fourth highest at R29 420, being preceded by King 35.40 KC IL Per Capita Cetshwayo and uMgungundlovu. The uMzinyathi MK GDP (R 000's), municipality reported the lowest average at R13 740. All the districts in the province reflected relatively strong 2019 GDP per capita growth between 2014 and 2019. This follows the pattern of increasing standards of living for South Africa in general. This trend will continue as long as the economic output of the economy exceeds that of population growth. 17.35 23.07 13.74 16.47 MY AJ ZL

MUNICIPLE LEVEL GVA RANKINGS The KZN South Coast has two of the world’s top dive sites and Marine Protected Areas What follows is a ranking of the top ten and Aliwal Shoal just 5km offshore of the Umkomaas River; bottom five municipalities within KwaZulu-Natal and Protea Banks, 8km off Shelly Beach, are both in various catergories regarding each world-revered dive sites, home to a number of ocean municipality's economic contribution, growth. This creatures. These wondrous ocean sites are both Marine allows us to see where the Ugu municipalities Protected Areas and have prompted numerous stand against others within the province. international documentaries and attracted an influx of These ranking are derived from 2019 data about global tourists. the reported gross value added by each municipality. Ranking by GVA Contribution eThekwini, eThekwini,R278 806 002 Top 10 Msunduzi, Umgungundlovu, R32 279 715 This ranking is concerned with the amount ofBottom 5 economic v value added by each municipality to the Ray Nkonyeni, Ugu, R12 534 042 province. As can be seen, the Ray Nkonyeni uMhlathuze, King Cesthwayo, R11 636 303 municipality is the third largest contributor. uMfolozi, King Cesthwayo, R10 669 252 eMadlangeni, Amajuba,R1 042 039 Alfred Duma, Uthukela, R9 914 064 Maphumulo, iLembe, R897 689 Newcastle, Amajuba, R9 413 797 Msinga, Umzinyathi, R892 179 Nkandla, King Cesthwayo, R800 956 uMngeni, Umgungundlovu, R7 730 119 Impendle, Umgungundlovu, R505 217 uMlalazi, King Cesthwayo, R6 338 165 AbaQulusi, Zululand, 5 649 096 Top 10 uMngeni,Umgungundlovu, 6.6% Ranking by GVA Growth uPhongolo, Zululand, 3.6% AbaQulusi, Zululand, 3.4% This ranking is concerned with which economies are Bottom 5 Endumeni, Umzinyathi, 3.2% growing the fastest. Unfortunately, the Nongoma, Zululand, 3.1% Umuziwabatu municipality is the third lowest Mpofana, Umgungundlovu, 1.5% and reports a negative growth. Msinga, Umzinyathi, 1.4% eMadlangeni, Amajuba, 0.8% Nkosazana Dlamini-Zuma, Harry Gwala, -2.0% Nqutu, Umzinyathi, 0.7% Maphumulo, iLembe, -2.1% Ulundi, Zululand, 0.6% Umuziwabantu, Ugu, -2.8% Richmond, Umgungundlovu, -3.4% Impendle, Umgungundlovu, -4.6% Ranking by GVA Per Capita uMfolozi, King Cesthwayo, 70 223 Top 10 eThekwini, eThekwini, 69 919 This ranking is concerned with the amount of valueBottom 5 added by each person in a region. As can be seen, the uMngeni, Umgungundlovu, 66 682 Ray Nkonyeni municipality ranks sixth in the Msunduzi, Umgungundlovu, 45 028 amount of value added per person. Mpofana, Umgungundlovu, 42 255 Maphumulo, iLembe, 10 292 Ray Nkonyeni, Ugu, 35 084 uMhlabuyalingana, Umkhanyakude, 10 270 Endumeni, Umzinyathi, 34 453 Nqutu, Umzinyathi, 8 880 Mthonjaneni, King Cesthwayo, 30 588 Nkandla, King Cesthwayo, 7 350 uMshwathi, Umgungundlovu, 30 397 Msinga, Umzinyathi, 4 790 Richmond, Umgungundlovu, 29 209

TRADE BALANCE Regional Trade Balance, 2018 The national trade balance reported a deficit South Africa has a trade deficit of R24 982 012 834 where the imports exceeded the exports by a Exports R268 583 566 637 factor of 1.09. KwaZulu-Natal, however, reported a surplus, where the exports outweighed the Imports R293 565 579 471 imports by a factor of 1.14. Ugu reported a trade deficit where the imports outweighed the exports KwaZulu-Natal has a trade surplus of R18 368 942 516 by a factor of 1.33. This was the eigth largest Exports R152 955 612 528 trade balance and sixth largest total trade. Balance of trade (BOT) is the difference between the Imports R134 586 670 012 value of a country's imports and exports for a given period and is the largest component of a country's Ugu has a trade deficit of R298 165 462 balance of payments (BOP). Economists use the BOT to measure the relative Exports R908 941 719 strength of a country's economy. The balance of trade is also referred to as the trade balance or the Imports R1 207 107 181 international trade balance. A country that imports more goods and services than it exports in terms of The KZN South Coast has the highest number of blue value has a trade deficit. Conversely, a country that flag beaches in KZN exports more goods and services than it imports has Within KZN, there are 6 Blue Flag beaches – an a trade surplus. The formula for calculating the BOT internationally -recognised demarcation of quality – and can be simplified as the total value of imports minus 5 of these are located on the KZN South Coast. With the total value of exports. golden sands and the warm, Indian Ocean, visitors can enjoy bathing, surfing, snorkelling and diving along this <0.05% HG 0.02% beautiful coast. 0.06% 0.2% ZL 0.12% IMPORT AND EXPORT 0.24% <0.05% MK 0.41% Exports are one of the major indicators that play a 0.83% crucial role in economic development. Countries make 0.5% MY 1.17% great sales and profits through exports; this is because 0.4% AJ they have different advantages in resources and skills 0.9% UGU 3.24% they possess. 0.6% UT Moreover, countries or businesses export goods and 10.19% services to countries that they have a competitive 7.9% IL 9.82% advantage over. Meaning that, they export goods and 9.5% MG services that they can produce better than any other KC country. Most countries have comparative advantages in their natural resources. For example, Colombia, ET Kenya and Jamaica are countries that are well known for growing coffee, which gives them an edge or niche 28.5% in exporting coffee. Average size of exports and The graph on the left shows the import of a district as imports by share of KZN, a perrcentage of the total import activity over the period 2009 to 2018. The same holds for export. 2009-2018 As seen previously, the trade balance can be simplified to the total value of exports subtracted from the total Export value of the imports. Import A trade surplus or deficit is not always a viable indicator of an economy's health, and it must be 51.5% 73.91%

considered in the context of the business cycle and other economic indicators. For example, in a recession, countries prefer to export more to create jobs and demand in the economy. In times of economic expansion, countries prefer to import more to promote price competition, which limits inflation. The graphs below show the major countries exported to and imported from for South Africa, KwaZulu-Natal and Ugu as well as the most imported and exported products. The largest contributor to all the previously defined regions is China. South Africa’s exports are more dependent on natural resources; as such the nation's exports of most of the precious metals, machinery & chemicals, mineral products, iron & steel product and vehicles & aircraft vessels. Some companies from overseas such as Volkswagen (VW) and Bavarian Motor Works (BMW) exports their car parts to South Africa to manufacture and complete cars, then South Africa export or sell the cars domestically. Most of these cars are exported to the United States and Europe. KwaZulu-Natal government encourages exports as it plays a great role in increasing job opportunities hence increase the wages which further leads to a better standard of living for the residents. Hence, the Department of Trade and Industry (DTI) launched an Integrated National Export Strategy (Export 2030) which aims at ensuring that the country’s exports promote industrialisation so as to spur economic growth. Furthermore, the strategy’s objective is to upsurge South African’s capacity for exporting different goods and services to several global markets. As such, the strategy goes in further at improving exports in districts. Imports are more dependent on the foreign countries; countries import goods and services that they cannot produce themselves. Imports weaken the trade balance which affects the economic growth at large. When a country imports more goods and services, it means higher trade deficit and this weakens the economic Top 5 countries exported too (% of Regional exports) South Africa (2020) KwaZulu-Natal (2019) Ugu (2019) China, 12.2 Zimbabwe, 14.6 United States of America, 10.5 United States of Netherlands, 8.5 Swaziland, 12.6 America, 6.3 China, 5.8 United States of Netherlands, 5.2 America, 10.4 United Kingdom, Namibia, 6.6 4.5 India, 4.9 Germany, 4.5 United Kingdom, Mozambique, 6.4 4.5 growth. However, in some cases imports are considered as a source of economic growth if it includes importing resources that will help in contributing to an improvement of the country’s investment. South Africa import mostly petroleum products, food material, chemicals, scientific instruments as well as the machinery and equipment. In addition, South African imports have been growing at a faster rate compared to exports. However, there is a hope that the trade balance and balance of payments will be amended as the country implemented trade liberation policies and recently entered into an African Continental Free Trade Area (AfCFTA) agreement with other African countries, which aims at boosting intra-African trade and to create a single market for goods and services where countries will agree on eliminating tariffs and non-tariff barriers to trade in goods and services, at the same time making it flexible for countries to trade with one another. Thus, with this agreement, South African goods and services will be cheaper for African countries to purchase and so it will be for South Africa to purchase goods from within Africa. Thus, this will increase an amount of exports in South Africa and also in KwaZulu-Natal.

Top 5 countries imported from (% of Regional imports) South Africa (2020) KwaZulu-Natal (2019) Ugu (2019) China, 26.6 China, 20.5 China, 30.3 Germany, 8.3 Japan, 11.1 India, 21.2 Thailand, 9.1 Bulgaria, 8.5 United States of Australia, 5.2 Thailand, 6.8 America, 6.5 India, 3.9 Japan, 3.8 India, 4.9 Netherlands, 6.1 The KZN South Coast enjoys the annual Sardine Run #GreatestShoalOnEarth Winter brings the planet’s biggest biomass migration close inshore of the region, giving visitors front-row seats to the ocean-based feeding frenzy. This is a must-see annual spectacle, as shoals of silver fish are followed by bigger fish, sharks, dolphins, whales and sea birds. Top 10 products we export (% of Regional exports) South Africa (2020) KwaZulu-Natal (2019) Ugu (2019) Gems, precious metals 17.0 Vehicles and parts and 16.2 Edible fruit and nuts; peel 12.7 accessories thereof of citrus fruit or melons Ores, slag, ash 14.5 Vehicles 12.7 Aluminium and articles 14.9 Miscellaneous chemical 11.4 10.1 12.0 Mineral fuels including oil 6.1 thereof products 10.7 Machinery including Ores, slag, ash Mineral fuels, oils and computers 6.0 3.8 Iron, steel 8.2 products of their distillation Iron, steel Fruits, nuts Pulp of wood or of other 8.2 fibrous cellulosic material Vehicles and parts and 10.6 accessories thereof 9.8 Nuclear reactors, boilers, 4.0 Soap, organic surface- 8.0 active agents, etc Aluminium 2.0 machinery and mechanical 7.6 Electrical machinery, 1.9 Fish and crustaceans, equipment appliances 3.9 molluscs and other 4.2 1.6 Miscellaneous chemical aquatic invertebrates 4.0 Plastics, plastic articles Nuclear reactors, boilers, 3.5 products machinery and mechanical appliances Other unclassified goods 3.8 Other unclassified goods Wood and articles of Sugars and sugar 3.7 wood; wood charcoal confectionery Animal or vegetable fats and oils and their Mineral fuels, oils and 2.8 cleavage products products of their distillation

Top 10 products we import (% of Regional imports) South Africa (2020) KwaZulu-Natal (2019) Ugu (2019) Mineral fuels including oil 16.8 Special classifications 13.8 Organic chemicals 38.2 provisions 16.0 Machinery including 12.7 Animal or vegetable fats computers Nuclear reactors, boilers, 9.4 and oils and their 9.2 Electrical machinery, 9.7 cleavage products 7.6 equipment machinery and mechanical Inorganic chemicals 4.9 Vehicles 8.0 Plastics, plastic articles 2.8 appliances 8.0 Cereals 4.9 Vehicles and parts and Nuclear reactors, boilers, 3.1 machinery and accessories thereof mechanical appliances 2.9 2.3 Pharmaceuticals 2.7 Inorganic chemicals 6.5 Vehicles and parts and 1.9 accessories thereof Optical, technical, medical 2.5 Electrical machinery and 4.5 Electrical machinery and equipment and parts apparatus equipment and parts thereof Miscellaneous thereof manufactured articles Plastics and articles Other chemical goods 1.8 Plastics and articles thereof 4.2 thereof Organic chemicals 1.6 Iron and steel 3.8 Furniture; bedding, mattresses, mattress Books, newspapers, 1.5 Cereals 3.5 supports, etc pictures Animal or vegetable fats 3.4 and oils and their cleavage products Mineral fuels, oils and 2.9 products of their distillation The KZN South Coast has the most tidal pools in KZN This family-friendly swimming destination has several tidal pools which provide sheltered beach swimming regardless of the surf conditions. TOP KZN BUSINESSES PER SECTOR The KZN Top Business Portfolio has applied the South African Standard Classification of all Economic Activities (SIC) of 1993 (CSS, 1993) in this discussion of the economic sectors. The purpose of the classification is to indicate the wide range of economic activities that exist in the Province of KwaZulu-Natal. However, the companies listed are by no means comprehensive but merely an indication of the quality of the diverse economy (and the world class companies and organizations that drive its effective functioning) operating in the province. Agriculture Mondi Limited Sappi Limited Orange Grove Dairy Pannar Crookes Brothers NCT Forestry Co- Tongaat Hulett Operative Ltd (NCT) Limited Mining Exxaro KZN Sands Foskor NPC Cimpor Tronox Limited Corobrik [Pty] Ltd Richards Bay Minerals (RBM) Construction Edison Power Group Exotic Buckles and Fountain Civil JT Ross Property Calvin and Family Castings Group Engineering (Pty) Ltd Group Malata and Sanyati Holdings Trench and Bulk WBHO zn under constuction Associates Limited Blasting

Transport, storage and Communication City Logistics Grindrod Limited SAPREF Lovemore Bros Siemens King Shaka Shree Property Richards Bay Coal Wozani Berg Terminal (RBCT) Gasoline International Airport Holdings Mediterranean Shipping Company (MSC) Tourism Beverly Hills Hotel Durban Tourism Hilton Durban Serendipity Tours Beekman Group Coastlands Hotels Fairmont Zimbali Gooderson Leisure Ezemvelo KZN Moses Mabhida and Resorts Resort Stadium Corporation Wildlife Videovision Entertainment Southern Sun Tala Private Game Thanda Private Ugu South Coast Tourism Elangeni & Maharani Reserve Lodge Suncoast Casino uShaka Marine World Tourism KZN Wavepark Gateway KwaZulu-Natal Sharks Board Sibaya Casino & Entertainment Maritime Centre of Excellence Kingdom Social and Community Services Ithala Development eThekwini Maritime Business Women's Durban University Of Durban Automotive Finance Corporation Cluster Association of SA Technology (DUT) Cluster (DAC) Durban Country Club Damelin DRG Outsourcing Dube TradePort East Coast Radio Educor Gagasi FM Gold Circle Green Office KZN Growth Fund Lotus FM SA Womens Forte THINK SA Ukhozi FM UKZN Foundation South African Sugar Vega School Videovision Association Industrial Entertainment Development Corporation (IDC) KwaZulu-Natal Lenmed Ethekwini Management Richfield Graduate South African Graduate School of Hospital and Heart College of Southern Institute of Broadcasting Corporation (SABC) Business Centre Africa (Mancosa) Technology Trade and Investment KwaZulu- Natal Trade ARB Electrical Boxer Superstores CMH Nissan Durban Coastlands Hotels AFROS CHICKEN and Resorts SHOP Esquire Technologies Gooderson Leisure Hirschs Key Group Pinetown Magnet Electrical Corporation Supplies Maxs Lifestyle McCarthy Limited Moses Mabhida Mr Price Group Ndzenga Tours and Stadium Limited Safaris Ramsi Group Rembrothers Southern Sun Sparkport Pharmacy Star Retailers Elangeni & Maharani Group Suncoast Casino Tala Private Game Thanda Private The SPAR Group LTD Three Cities Group Reserve Lodge Sibaya Casino & Entertainment Kingdom Utilities Mhlathuze Water SLG (PTY) Ltd Transnet Pipelines Tronox LimiUmgeni Eskom Waterted

Financial and Business Services ABSA Accelerated Business Acutts Adapt IT ADT Security Systems Excellence Alexander Forbes B-Active Sports Bafundise Skills BEE Verification Beekman Group Agency BEEScore Black Balance Blue Security Broll Property Group BusinessFit Capitol Caterers Projects Conlog Cox Yeats Attorneys Daly Credit Catalyx Corporation DRG Outsourcing EduPower Skills Deloitte Digitlab Dixie Recruitment Academy FD Centre South First National Bank eLan Property Group Ernst and Young Excellerate Security Africa Green Office Greyville Convention Futurelink GeoAfrika Grant Thornton Centre IFA Resorts and Ilembe Technologies HR Matters Icebolethu Group ICR Solutions Hotels cc KPMG South Africa KZN Van Rental Insight Consulting International Bank IT support durban Vaults MAPHEQ MCS Debt Recovery Metrofile Mfushane Consulting Michaelhouse Morar Incorporated Nedbank Network Old Mutual South Olivetti Configurations Africa Omni Accounts Photonote Office Rewards School of Equipment PKF Durban Pro Appointments Business Royal HaskoningDHV SA Homeloans Safricloud SAICA Sanlam Sasapi Trading SchoemanLaw Sesalos Shepstone & Wylie Shree Properties Sigma International SmartXchange Standard Bank Supertech Group Tafta The Development The Durban Events The Unlimited Dixie Recruitment Theasen Pillay & House Company Associates thoughtFIRE Tongaat Hulett TPA Legal Tyson Properties Umhlathuze Limited Electrical VNA Consulting Wakefields Woodford Car Hire XDN Xerox XTEC Xerox Zimbali Coastal ActionCOACH Durban ICC- Durban Point Parklands College Resort Development and Christopher Business Coaching International Company Robin Pre Primary Marlene Powell Convention Centre KwaZulu-Natal Joint University of KwaZulu Municipal Pension/ Natal Graduate Provident Funds School of Business (NJMPF) and Leadership Parastatals Durban Film Office Durban Tourism Eskom Invest Durban Dube TradePort Ezemvelo KZN King Shaka KZN Growth Fund Mhlathuze Water Tourism KZN Wildlife International Airport Transnet Limited Transnet Pipelines Transnet Port Ugu South Coast Umgeni Water Terminals Tourism Ithala Development National Ports The Development Trade and Transnet National Bank of Southern Finance Corporation Authority- Port of Africa (DBSA) Investment KwaZulu- Ports Authority- Port Limited Richards Bay Natal of Durban KwaZulu-Natal Sharks Richards Bay Industrial South African Association for Board Maritime Centre Development Zone Marine Biological Research of Excellence (RBIDZ) (SAAMBR)

Manufacturing Altech UEC Amcor Flexibles Apollo Tyres aQuelle Afrox ArcelorMittal Steel Aspen Phamacare Beier Industries (PTY) Belgotex Buckman Newcastle Works Ltd Laboratories Blaize Group BMG Bell Equipment Canvas and Tent Clover S.A. (Pty) Ltd Conlog Desmond Equipment Constantia Afripack Durban Country Club DEFY Durban Automotive Dano Textile Eddels Footwear Edison Power Group Elma Engineering Services (Pty) Cluster (DAC) Industries Engen Petroleum Ethekwini Maritime eThekwini Maritime Expand A Sign First Storage Limited Cluster Concepts Foskor Frimax Foods Frys Family Foods FutureLife GUD Filters Godrej Consumer Hosaf Hulamin Limited Illovo Sugar South Independent Media Products Africa KZN Imperial Armour Intrepid Printers Invest Durban K2 Design Studio Kings way Kingsgate Clothing KZN Oils Lazer Junction Paradigm Container MacBean Beier Management Plastics (MBBP) MAN Truck and Bus MCS Debt Recovery Metair Group Metal Products Mexan Products Nampak Liquid NCP Alcohols NCS Resins LHL Engineering Perma Products PFK Electronics Retractaline Royal Tent & Tarp Safal Steel (PTY) Ltd Sappi Limited Shoreline Beverages Siemens Smiths Somta Tools Southern African Manufacturing Shipyards (Pty) LTD The Oyster Box The Witness Toyota South Africa TSA International Unilever South Africa Willowton Group Beier Albany & Beier Safety Company (Pty) Footwear (Pty) Limited Limited

FINANCIAL REPORT 2018/19 The following annual financial statement for the Ugu district and its municipalities declare it financial position. All values in R000 Ugu Ray Nkonyeni Umdoni Umuziwabantu Umzumbe Qualified audit Financially Financially Financially Financially FINANCIAL PERFORMANCE unqualified unqualified unqualified Property rates unqualified Service charges 92 364 26 609 7 539 Investment revenue (209) 405 472 9 929 33 472 0 Transfers recognised - 395 235 174 211 14 250 13 539 operational 4 129 133 556 87 229 12 994 Other own revenue 7 847 222 144 124 178 700 978 5 869 166 719 470 154 713 71 459 26 135 145 180 62 360 Total Revenue (excluding 1 258 563 877 414 276 233 8 529 53 010 capital transfers and 15 005 16 888 contributions) 400 264 392 131 103 293 24 224 9 441 27 360 14 488 777 Employee costs 118 201 55 238 29 494 6 Remuneration of councillors 217 420 2 351 2 241 2 343 161 43 044 9 736 Depreciation & asset 11 331 97 098 8 501 161 560 55 748 impairment 145 225 4 578 4 815 5 159 161 853 Finance charges 363 427 147 239 28 225 (16 672) Materials and bulk purchases 0 1 005 139 333 735 4 020 46 172 Transfers and grants 570 649 (127 725) (57 502) 1 354 330 120 802 31 178 37 404 0 Other expenditure (95 767) 77 832 Total Expenditure 55 000 0 0 29 500 70 909 Surplus/(Deficit) 0 (26 324) 37 404 0 Transfers recognised - capital 0 (40 767) (26 507) 31 263 29 500 Contributions recognised - 70 909 1 532 capital & contributed assets 0 (52 831) n/a 344 785 35 275 Surplus/(Deficit) after capital (40 767) 0 transfers & contributions 23 823 n/a Share of surplus/(deficit) of 25 355 associate 0 Surplus/(Deficit) for the year 203 947 4 357 314 218 39 632 CAPITAL EXPENDITURE & 9 505 973 31 300 40 923 44 883 FUNDS SOURCES 738 729 60 599 25 094 6 600 211 681 Capital expenditure 429 278 364 529 Transfers recognised - capital n/a n/a n/a 27 264 Public contributions & 265 346 donations 0 0 0 (49 156) 1 175 Borrowing 41 755 (18 534) 14 160 (2 576) 518 271 Internally generated funds 780 484 42 065 39 254 378 061 Total sources of capital funds (117 560) 0 0 FINANCIAL POSITION 67 333 (17) Total current assets 411 470 382 070 168 491 (117 576) Total non current assets 4 283 937 1 703 526 (17 142) Total current liabilities 658 104 9 655 0 Total non current liabilities 181 092 (142) 52 725 Community wealth/Equity 66 144 156 797 (26 670) 4 011 925 1 676 614 0 CASH FLOWS (1 023 546) 31 405 (246 127) (2 363) (144 880) 0 Net cash from (used) operating (2 570) 818 Net cash from (used) investing (2 190) Net cash from (used) financing (1 026 267) (26 879) (220 648) Cash/cash equivalents at the year end UNAUTHORISED, IRREGULAR, FRUITLESS & WASTEFUL EXPENDITURE Unauthorised expenditure 228 150 0 42 302 Irregular expenditure 322 159 153 379 42 698 Fruitless & wasteful 11 718 148 528 expenditure SOURCE Audited Outcome - C1 2020 Q3

Labour Market LABOUR INDICATORS South Africa has been experiencing serious challenges in the labour market The labor force participation both in terms of employment and labour-employer relationships. The rate (LFPR), or economically government adopted legislation that strongly favours the employed and active population (EAP), is a that is particularly trade union friendly. This, as well as other measure of an economy’s impediments, discourages employers from hiring new employees thereby active workforce. The depriving many workers of a chance to gain experience and skills that will formula for the number is the make them employable. sum of all workers who are employed or actively seeking The graph below shows the national, provincial and Ugu district labour employment divided by the indicators. In KwaZulu-Natal, the official unemployment rate has been total noninstitutionalized, constantly increasing throughout the past five years. Almost half of the civilian working-age working age population in KZN is not economically active while 50.9% of population. The labor force the population is actively seeking work or engaged in actual employment, participation rate is an this is indicated by the labour force participation rate (LFPR). important metric to use when analyzing employment and The situation is worse for Ugu with only 47.4% of the population being unemployment data, because economically active. These undesirable labour market indicators indicate it measures the number of low economic activity, lack of job opportunities and high number of people who are actively job discouraged workers in the province. This is typical of an economy in which hunting as well as those who there are high and persistent unemployment rates. are currently employed. It omits institutionalized people Labour Indicators, 2020 (in prisons, nursing homes, or mental hospitals) and 39.7% South Africa 69.9% 60.3% members of the military. 49.1% 38 933 395 (65.3%) 30.1% 50.9% 52.6% 47.4% KwaZulu-Natal 76.0% 7 195 738 (62.4%) 24.0% Ugu (2018) 69.3% 452 657 (60.3%) 30.7% Non-EAP Eligible Population EAP Employed Unemployed UNEMPLOYMENT At current, Ugu has the fourth smallest unemployment rate at 30.7%. The least is eThekwini at 17.3% and the highest is Amajuba at 38.7%. As can be seen from the graph below from the national down to the municipal level, there is a steady increase in unemployment. Within the Ugu district the Umzumbe 50 municipality reports the highest unemployment rate at 49.1%. The 45 lowest is Ray Nkonyeni at 26.0%. However, the 40 district unemployment KZN rate is consistently higher than the provincial Ugu average by about 4%. 35 Ray Nkonyeni There is a serious need for concerted efforts in Umdoni 30 Umuziwabantu job recreation and Umzumbe encouragement to seek work. 25 20 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Trend of Unemployment 2010-2019 (%)

MUNICIPLE EMPLOYMENT AND UNEMPLOYMENT RANKINGS The following graphs show the ranking of the top ten and bottom five municipalities within KwaZulu-Natal in the respective catergories. They are derived from the reported employment activity. Ranking by employment, 2020 eThekwini, eThekwini, 1 147 456 Msunduzi, Umgungundlovu, 173 564 This metric quantifies the number of people employed by a region. The Ray Nkonyeni municipality was Newcastle, Amajuba, 77 948 ranked fourth having employed a total of 67 064 Ray Nkonyeni, Ugu, 67 064 people. KwaDukuza, iLembe, 64 601 Nkandla, King Cesthwayo, 7 050% Alfred Duma, Uthukela, 63 339 Top 10 Msinga, Umzinyathi, 6 186 uMhlathuze, King Cesthwayo, 62 727 Bottom 5 Maphumulo, iLembe, 5 701 eMadlangeni, Amajuba, 5 538 AbaQulusi, Zululand, 32 368 Impendle, Umgungundlovu, 3 096 uMfolozi, King Cesthwayo, 32 036 uMngeni, Umgungundlovu, 30 602 Top 10 Umzumbe, Ugu, 86.86% Ranking by employment rate, 2020 uMfolozi, King Cesthwayo, 85.04% This measures the ratio of employed people to the eThekwini, eThekwini, 70.69% eligible population. The Umzumbe municipality has Bottom 5 Impendle, Umgungundlovu, 69.21% the highest employment rate. Mpofana, Umgungundlovu, 64.81% Alfred Duma, Uthukela, 63.49% Umuziwabantu, Ugu, 36.65% uMlalazi, King Cesthwayo, 62.10% Dannhauser, Amajuba, 36.50% Msunduzi, Umgungundlovu, 61.64% Okhahlamba, Uthukela, 31.99% AbaQulusi, Zululand, 59.16% Richmond, Umgungundlovu, 59.04% Msinga, Umzinyathi, 31.17% uPhongolo, Zululand, 25.53% Ranking by employment growth, 2002‐2019 KwaDukuza, iLembe, 20.53% Top 10 uMngeni, Umgungundlovu, 19.62% Bottom 5This graph ranks the municipalities in order of employment growth. That is, what is the increase in Ray Nkonyeni, Ugu, 15.19% the number people who were able to secure jobs. Endumeni, Umzinyathi, 14.01% The Ray Nkonyeni municipality was ranked Big Five Hlabisa, Umkhanyakude, 12.98% third. uMzimkhulu, Harry Gwala, 12.91% Mkhambathini, Umgungundlovu, 12.83% Nkandla, King Cesthwayo, 1.40% Mtubatuba, Umkhanyakude, 12.68% Dannhauser, Amajubai, 0.98% Mandeni, iLembe, 12.49% uMshwathi, Umgungundlovu, 12.44% Ulundi, Zululand, -0.73% eMadlangeni, Amajuba, -5.70% Okhahlamba, Uthukela, -6.03% Top 10 eThekwini, eThekwini, 281 428 Ranking by unemployment, 2020 Msunduzi, Umgungundlovu, 77 602 Newcastle, Amajuba, 46 342 This graphs ranks the municipalities according to the Bottom 5 uMhlathuze, King Cesthwayo, 44 942 number of unemployed people it consists of. Lower Ray Nkonyeni, Ugu, 32 668 is better. Ray Nkonyeni reports the fifth largest Alfred Duma, Uthukela, 32 633% amount of unemployed people. KwaDukuza, iLembe, 26 410 Inkosi Langalibalele, Uthukela, 20 449 Mkhambathini, Umgungundlovu, 4 639 Ulundi, Zululand, 16 674 Richmond, Umgungundlovu, 4 348 AbaQulusi, Zululand, 16 164 eMadlangeni, Amajuba, 3 787 Mpofana, Umgungundlovu, 2 918 Impendle, Umgungundlovu, 1 572

Dannhauser, Amajuba, 50.00% Ranking by unemployment rate, 2020 Umzumbe, Ugu, 49.10% Ulundi, Zululand, 47.00% A lower unemployment rate is better. The Umzumbe Msinga, Umzinyathi, 46.20% municipality has the second highest unemployment Nongoma, Zululand, 45.40% rate at 49.10% being preceded by Dannhauser at Maphumulo, iLembe, 44.90% 50.00%. Nquthu, Umzinyathi, 44.70% uMhlabuyalingana, Umkhanyakude, 44.70% uMshwathi, Umgungundlovu, 21.40% Nkandla, King Cesthwayo, 43.00% Richmond, Umgungundlovu, 20.20% uMzimkhulu, Harry Gwala, 42.20% Mpofana, Umgungundlovu, 19.50% uMngeni, Umgungundlovu, 18.20% eThekwini, eThekwini, 17.30% Top 10 Bottom 5 UNEMPLOYMENT BY GENDER Trend of Unemployment by Gender 2016-2018 (%) Reports indicate that women are active participants in the labour market, but their 30 absorption rate in the labour market is very low due to lack of education, lack of skills and 28 cultural obstructions. Examining the proportion 26 of men and women unemployed for a certain period of time helps illustrate, to a certain 24 extent, the gendered nature of unemployment in the province. Unemployment for both genders 22 KZN has been persistently increasing over the period 20 Ugu in KZN. Although the gap is not significantly wide, males still have lower unemployment Male rates compared to females. While policies and 22 Female legislation that support gender equality and 24 women’s empowerment are in place, they have not been sufficient to reduce inequalities in the 26 labour market. 28 2017 2018 30 2016 EMPLOYMENT DISTRIBUTION BY SECTOR The tertiary sector is by far the largest employer in all regions. The reliance on the service sector is, however, undesirable considering the current state of the economy. The South African economy has not created enough job opportunities for the lower skilled workers and many low-skilled workers are struggling to find jobs due to structural changes in the economy. This is also the case in the KZN province. Share of Total Local Therefore, more focus should be Employment 71.7 66.8 67.4 66.3 66.9 66.9 put on creating job opportunities for the unskilled labour force and coming up with effective ways to absorb this group into the economy. The 22.5 20.2 21.8 20.9 18.8 19.7 primary and secondary sector 13.0 10.8 12.8 14.3 13.4 has capacity to absorb more 5.9 labour. 9.4 10.8 22.0 3.8 6.2 4.0 6.6 14.0 15.0 11.7 23.1 22.2 South Africa Ugu Share of KZN from Ugu Umdoni Umzumbe Share of Ugu from Umuziwabantu Ray Nkonyeni Municipalities 55.7 57.2 59.1 Secondary Sector Tertiary Sector Primary Sector Employment distribution by sector 2019 (%)

EMPLOYMENT DISTRIBUTION BY INDUSTRY This is a more granular breakdown of employment distribution. The primary sector is comprised of the agricultural and mining industries, the secondary sector is comprised of the manufacturing, electricity and Households Agriculture Mining South Africa construction industries, and the 8.0 5.3 2.7 KZN tertiary sector is comprised of the 8.6 5.1 0.4 Ugu trade, transport, finance, 9.6 8.1 0.9 community services and households industries. Community Manufacturing These graphs show that the 23.0 10.4 dominating industry from the 23.1 12.4 national down to the municipal 23.6 10.7 level is community services. The reliance on the service sector is, Finance 20.3 Electricity however, undesirable considering 15.4 0.7 the current state of the economy. 14.0 21.3 0.4 Finance and trade also hold a 11.1 6.1 8.2 0.4 large portion of employees. The 6.4 22.7 8.2 government must focus on 5.4 Trade 7.7 creating a conducive environment Transport Construction for creating jobs among the labour intensive industries in the Total Employment Share by Industry, 2019 primary and secondary sector such as agriculture, manufacturing and Households Agriculture Mining Umdoni construction. This could play a 9.2 7.5 0.1 Umzumbe fundamental role in increasing the 8.5 7.6 1.1 Umuziwabantu production of exportable products 8.4 5.8 3.7 Ray Nkonyeni and thus widen the export base, 10.3 8.6 0.6 whilst opening more job Manufacturing opportunities. Community 12.0 22.2 11.0 Although the agricultural sector 23.7 9.2 has shed a couple of jobs in the 28.7 10.4 2016/2018 period, this sector has 23.5 seen the highest average growth in the province when compared to Finance 23.7 Electricity other sectors. The electricity 11.2 23.6 0.4 industry declinied the most by 10.5 5.5 20.5 23.9%. The tertiary sector has 9.8 5.5 22.3 8.3 0.3 been notably growing in the 11.4 6.9 8.2 0.3 country, mostly absorbing the high 5.2 Trade 8.6 0.4 skilled workers. Transport 7.2 Construction Total Employment Share by Industry (Ugu Municipalities), 2019 EMPLOYMENT GROWTH Employment Growth 1.05 KZN 2014-2018 Ugu Efforts to increase emplyment in KZN has shown a 4% increase from 2014-2018, while Ugu showed an 5.4% relative to 2014 1.04 increase which is the third highest in the province. The highest is iLembe at 6.7% and then uMgungundlovu at 6.0%. The 1.03 lowest employment growth was seen by eThekwini at 2.7%. 1.02 1.01 1.00 2014 2015 2016 2017 2018