Mkhambathini has several comparative advantages. It is well located in relation to Durban and Pietermaritzburg and adjoins Cato Ridge, a potential industrial node. The N3, which is identified in the Spatial Growth and Development Strategy as a Provincial Corridor, runs east west through the central part of the municipal area. Significant portions of the municipality fall within the Valley of a Thousand Hills (with Table Mountain a major landmark), an area with high potential for eco-tourism, and in the Midlands Mist Belt, which has a well established agricultural economy.

Economy
Camperdown is perceived to be a natural growth area between Pietermarizbug and the fast growing Hillcrest region and a number of projects are illustrating this trend. Cato Ridge, within easy access of the highway, is well placed to take the overflow from traditional commercial, industrial and residential areas, which are either reaching capacity or preclude a growing number of home seekers as a result of the residential price growth evidenced in the last few years in many nearby suburbs. Developments in Cato Ridge are taking place in the form of large commercial and industrial parks backed up by a residential component.

Agriculture 
Agriculture is an important sector and should be actively developed. Agriculture is dominated by large-scale sugar-cane cultivation, with some agri-processing. The sugar mill in Illovo has been moved to Eston to provide a much needed manufacturing centre. Linking emerging farmers with markets and partners such as Rainbow Chickens and Illovo Sugar would be of value.