Various sectors are contributing to KwaZulu-Natal's growth
The current economic challenges facing South Africa, including power shortages and sporadic interest rate hikes, haven’t dampened hopes for the province of KwaZulu-Natal to achieve its goals of halving poverty and growing the economy by 8% by the year 2014. Various economic options are continuously being explored – using the Provincial Industrial Development Strategy as a guide - that have identified potential sectors to be considered to attract investment for the creation of jobs to scale down the levels of poverty. 

For more information contact Boyce Mntambo on +27 33 264 2500 or email mntambob@kznded.gov.za

Developing emerging enterprises
As part of the provincial government’s determination to keep the province’s head above the current economic tide, the Department of Economic Development (DED) continues to play a vital role in promoting the development of emerging enterprises in the form of SMMEs and co-operatives to widen the scope of opportunities for small scale business to emerge and contribute towards socio-economic stability. Over the past years, the DED has strengthened its resolve of promoting diverse sectors through the mobilisation of public participation in the economy by facilitating the training and funding of co-operatives that provide employment to many people that could have been subjected to unemployment and grinding poverty.

While encouraging growth in these areas of the economy, the DED has since been ensuring that designated groupings such as women and youth were prioritised. Meanwhile, efforts to fine tune the Provincial Youth Economic Empowerment Strategy are at an advanced stage. Current Youth Economic Empowerment projects facilitated by the Department are already responding to some of the strategy recommendations. These include the KZN Youth Technical Skills Training Programme, KZN Youth Business Development Website and the KZN Youth Designers (KYD) project, to mention just a few. The full implementation of the strategy is expected to begin in the next financial year 2009/10. This has also been motivated by the young people’s demonstration of a positive attitude towards government initiatives aimed at bringing them to the mainstream of the economy.

Promoting co-operatives and SMMEs
Co-operatives and SMMEs that are involved in a range of sectors that include construction, manufacturing, agriculture, arts and crafts, and service provision had been assisted. About 1 948 co-operatives and 1 526 SMMEs had received funding from the department – which amounted to R760-million. This initiative is also driven by the desire to help reduce the gap between the first and second strands of our economy, and hence the provision of skills training is aimed at empowering budding business with the necessary capacity to compete successfully in the rigorous market.

In acknowledging the role of the co-operatives and SMMEs, different approaches are being applied and hence, the department’s Local Economic Development (LED) programme also contributes towards these levels of the economy. Through the European Union-sponsored Gijima KZN LED Programme, both co-operatives and SMMEs are benefiting, co-ordinated through the district municipalities. Since its inception in 2003, the Gijima KZN initiative has since injected about R141-million to fund around 193 projects while R85-million was leveraged from private sector agencies like financial and development institutions – resulting in the creation of 457 permanent jobs and 976 casual ones.

In all these initiatives, young people are being encouraged to be fully involved. With June being set aside to celebrate young people’s contributions to various aspects of the society and acknowledging the challenges they face on a daily basis, numerous activities, including workshops, have been organised throughout this period. Certainly, amongst issues to be highlighted would be the intensification of youth participation in the economy, especially by seizing the opportunities relating to the preparations for the forthcoming 2010 FIFA World Cup as well as high profile infrastructure projects being constructed across the province.

Private sector investment
Meanwhile, it’s expected that the huge government and private sector investment in the infrastructure development, including the construction of Moses Mabida Stadium and the R6.8-billion Dube Trade Port in Durban, would help unleash more opportunities for emerging youth entrepreneurs. Presenting the Department’s Budget Policy Speech for 2008/2009 financial year, MEC for Finance and Economic Development, Dr Zweli Mkhize said the Dube Trade Port project has begun the empowerment of the historically excluded communities. 'About 70% of the procurement spend within the EPC contract of R3.2-billion is dedicated to BEE suppliers.' This is indicative of the government's commitment towards the eradication of socio-economic disparities in the province. The trade port, being developed at La Mercy on the north of eThekwini, is the combination of the world class King Shaka International Airport and an industrial development zone that will house various modern industrial sectors positioned for high earnings exports and imports, including agri-business. The airport part is scheduled for completion before the FIFA 2010 Soccer World Cup.

One Stop Shop Support Centres
Moreover, in an effort to reach out to every corner of the province, in its effort to accelerate growth through various sectors, the department has established district offices to create access to its business services. The One Stop Shop Business Support Centres are a collaboration with other social partners such as SEDA, private financial institutions like Ithala Development Finance Corporation and local authorities in the districts. They are to serve as hives for integrated business support that include financial and business opportunities advice, development of business plans and market access by small scale businesses as reflected below.

Certainly, young people will benefit from this government effort as it will be empowering them with a variety of information required to make business decisions. The centres have been established in the Amajuba (Newcastle), uThungulu (Richards Bay), Umzinyathi (Dundee), Umgungundlovu (Pietermaritzburg), and Ugu (Port Shepstone) District Municipalities.

Together, building a winning province to achieve the Millennium Development Goals!  

KwaZulu-Natal Department of Economic Development

Contact: Boyce Mntambo, Manager for Information & Communication Technology
Tel.: +27 33 264 2500
Fax: +27 86 679 6404
Email: mntambob@kznded.gov.za

Website: www.kznded.gov.za