Fixed investment in KwaZulu-Natal seems to have slowed down. The latest KwaZulu-Natal fixed investment monitor, as compiled by Mike Schssler of Economists.co.za, shows that most of the variables that contribute to fixed investment in the province did not perform very well in June. Although the total investment index grew for the fifth consecutive month, year-on-year growth slowed to only 1% after it reached a high of 8.1% in March.  Quarter-on-quarter the total investment index was still up 3.1%. The slow investment climate in KwaZulu-Natal will only be exacerbated if the current round of strikes in various sectors of the economy continues.

Transport equipment boosts investment monitor

Investment in transport equipment was one of the better performers in fixed investment of the KwaZulu-Natal,it grew 4.9% year-on-year, the best growth rate in seven months. Quarter-on-quarter investment in transport equipment was down 1.9%, but this decline is minor after three months of double-digit declines.
The improvement in investment in transport was mainly due to several area developments in KwaZulu-Natal, like the revamping of hospitals and energy projects for which transport equipment is required. Over the shorter term, preparations for the Vodacom Durban July, which took place the first weekend of July, also boosted investment in transport equipment in June.
Investment in sea and air transport fell by double digits for the fourth month in a row. This was partly because the rand’s weak exchange rate makes the imports of these big ticket items very expensive. The decline in air passenger numbers also means that airlines are not making the kind of money that would justify big investment purchases. Although the planned new airline, Skywise, will not initially fly to KwaZulu-Natal, it would mean increased competition in the South African domestic airline space, which could lead to lower ticket prices and increased use of air transport, which would eventually require airline companies to invest in more aircrafts.

Click below link to download KZN Investment Monitor June 2013:
KwaZulu-Natal Investment Monitor June 13.docx - 1.6 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/