Date: 2021-09-27 00:42:10
State of eThekwini's Economy.
South Africa’s economy is in a relatively good position due to global factors while locally renewable energy provides growth opportunities. EThekwini’s economy is forecasted to grow at under five percent this year but this is a fairly optimistic forecast. Globally, vaccine access has emerged as the primary dividing factor of economic recovery.
This was revealed at the Economic Affairs Business Forum Webinar held on 9 September by Tshegang Chipeya, Acting Senior Manager of Information and Research in her presentation on the overview of the State of the Economy Report. The webinar was held in partnership with the Durban Chamber of Commerce and Industry.
The presentation outlined the current state of Durban’s sectors, the City’s job market, and economic opportunities despite the economic downturn.
The presentation also revealed that the recent looting has been devastating to the progress made by the economy and a significant drive is required to rebuild the City with a net economic impact of -R12.8 billion.
It is positive to note that the commodity boom is lifting national growth with good agricultural output and growth in precious metals.
Manufacturing, trade, and business finance are the fastest recovering sectors. Construction and energy will struggle to recover and require more assistance. Tax revenue has seen an increased 56.2 percent for the period from April to June 2021 compared to last year. Tax amounting to R377 billion will increase government’s spending power.
RCL has reported a return to profit with double digit growth and even though the poultry side is still struggling, the business generally is doing well.
Checkers has recorded a profit and created 4 000 new jobs. Renewable energy is another area of growth and the City has put out a request for interest for independent power producers for 400mw. This is attracting significant interest and will certainly create growth. Tech and innovation present inherent opportunities for economic growth which is essential for the City’s future.
The City has been proactive in responses to assist business post the unrest, having set up the One Stop Centre with a range of concessions to encourage rebuilding building by business.
The City’s five-year Economic Recovery and Shared Growth Path 2022 – 2027 is in draft form, in response to Durban’s stagnant economic growth and will be presented to the Economic Development and Planning Cluster soon.