Introduction to the KwaZulu-Natal Economy

This investment is unprecedented in the history of the province and will strengthen the local economy and stimulate increased investment across the various industrial and commercial sectors.

Peeling back the layers of KwaZulu-Natal’s economic sectors is a like opening a treasure chest of surprises.  The deeper you delve into the chest the more wonders you find.  It is not only the depth and a range of the companies underpinning the layers of the economy that dazzles, but the distinctiveness of the products and services.

The KwaZulu-Natal Top Business Portfolio has applied the South African Standard Classification of all Economic Activities (SIC) of 1993.  The Standard Industrial Classification of all Economic Activities (SIC) is based upon the latest (third revision which appeared in 1990) International Standard Industrial Classification of all Economic Activities (ISIC) with suitable adaptations for local conditions (Source Stats SA). 

Classification

1. Agriculture

The agriculture sector incorporates establishments and activities that are primarily engaged in farming activities, but also includes establishments focusing on commercial hunting and game propagation and forestry, logging and fishing.

2. Mining and Quarrying

This sector is broadly defined as the physical or chemical transformation of materials or compounds into new products.

4. Utilities (generally referred to as “electricity”

5. Construction

This sector includes the site preparation, building of complete constructions or parts thereof, civil engineering, building installation, building completion and the renting of construction or demolition equipment with operators.

6. Trade

The trade sector entails wholesale and commission trade; retail trade; repair of personal household goods; sale, maintenance and repair of motor vehicles and motor cycles; hotels, restaurants, bars, canteens, camping sites and other provision of short-stay accommodation.

7. Transport, storage and communication

Transport as an economic sector refers to activities concerned with land transport, railway transport, water transport, and transport via pipelines, air transport, and activities of travel agencies, post and telecommunications, courier activities, as well as storage and warehousing activities.

8. Financial and Business services

This sector includes financial intermediation; insurance and pension funding; real estate activities; renting or transport equipment; computer and related activities; research and development; legal; accounting; bookkeeping and auditing activities; architectural, engineering and other technical activities; and business activities not classified elsewhere.

9. Social and community services

This sector includes public administration and defence activities, activities of government, government departments and agencies; education, public and private; health and social work; sewage and refuge disposal, sanitation and similar activities; activities of membership organisations; recreational, cultural and sporting activities; and personal services e.g. hairdressing

10. Tourism

The tourism industry encompasses many different economic activities under one heading. In terms of economic analysis, the tourism sector is distinctive in that it is not a sector formally classified as such in terms of the Standard Industrial Classifications. In light of the large contribution made by this industry to the KZN economy it has been decided to create its own category.