Fixed investment in KwaZulu-Natal strengthened towards the end of 2014 as some big industrial development projects started and many small businesses spent money on equipment. The total KwaZulu-Natal investment monitor, as compiled by Mike Schüssler of Economists.co.za,  increased 2.7% year-on-year, the third month of growth, and was up 6.8% on a quarter-to-quarter basis. 

The scope of projects like the Dube Tradeport at the King Shaka International Airport and the Department of Trade and Industry's Industrial Development Zone near the Richards Bay port means that the growth in investment is set to continue into 2015.  Samsung Electronics is one of the companies which recently opened a television manufacturing plant for the local consumer market at the Dube Tradeport and has committed to a total investment of $20 million by the end of 2018,  which could help create 5 000 direct and 20 000 indirect jobs.

At the Richards Bay IDZ, 68 hectares of land should have services and infrastructure by July to attract investors.  The first three prospective investors which signed up with the IDZ, can invest R4.5 billion in the area.

Transport equipment boosted by local projects
With both these development projects near the province's main transport hubs, investment in transport equipment is performing strongly and grew by 16.3% year-on-year. The growth was broad-based as investment in land transport equipment was up 8.5% and purchases of ship and airplanes increased by 40.5%.
In the land transport category, light commercial vehicles, which include bakkies, increased by 23.6% and investment in medium commercial vehicles like small trucks, by 3.6%. This shows some hope for small and medium-sized businesses as these operations seem to be willing to buy assets. While some of the increases in small business activity might be seasonal, it is very positive for the province's economy.

Bus purchases have been growing strongly for several months and were up 92. 3% in December as some transport companies continued to expand and upgrade their fleets.

Click below link to download Dec 2014 Investment Monitor:
KwaZulu-Natal Investment Monitor Dec 2014.docx - 1.4 MB

Click below link to download Feb 2014 Investment Monitor:
KwaZulu-Natal Business Barometer Feb 2015.docx - 250.3 KB

Click below link to download SA Budget Overview:
Government Budget.pptx - 1.2 MB

Dr Clive Coetzee

General Manager:  Infrastructure Management and Economic Services

KZN Provincial Treasury

Economist (PhD UKZN)

033 897 4538

http://www.kzntreasury.gov.za/