Economy
The key drivers of the local economy are agriculture, services, tourism and retail. Agri- processing has potential, but this has yet to be realized as a key driver.
uMkhanyakude forms part of the Lubombo Trans-frontier Conservation Area. This conservation area includes South Africa, Swaziland and Mozambique. The Tembe-Futi portion of the Lubombo Trans-frontier Conservation Area falls within uMkhanyakude, with Ndumo and Tembe Elephant Park forming major attractions. uMkhanyakude has applied for the entire district to be declared as a Biosphere Reserve, ensuring that all economic development is in line with conservation principles.
The Jozini Dam forms an integral part of the economy of the region. It draws its water from Maputaland’s Pongola River, which has a series of oxbow lakes and pans teeming with fish and bird life. Tiger fishing from luxurious house boats is a popular attraction. The dam, which is one of the largest in the country, is an under-exploited tourism resource in the area. The Muzi Lake, boat and canoeing projects also offer invaluable development potential.
The alluvial soils surrounding the river have considerable agricultural possibilities. This dam is designed to irrigate more than 80 000 hectares of agricultural land. Crops include sugar cane, rice, coffee, cotton, fibre crops and various sub-tropical fruits. Other agricultural products in the region include timber, tomatoes, chillies and pineapples. The area produces over 90% of South Africa’s queen pineapples. There is potential for agri-processing in the form of canning or bottling of pineapples.
One of the most exciting opportunities for generating local large-scale employment lies in the construction of an industrial cluster on communal land on the Makhathini Flats. The construction would include a sugar mill with potential for co-production of ethanol and electricity. The construction of a cold storage facility will also improve access to markets for farmers.
Economic Imperatives
The District and Local Municipalities are in the process of establishing an investment framework with a view to further create an enabling environment for private sector investment, particularly in the key sectors in the District.
There is also a drive that is aimed at developing the Lubombo Spatial Development Initiative (LSDI) Corridor of the District which focuses on development around Isimangaliso Wetland Park, Makhathini Flats and Pongolapoort Dam.
Investment Opportunities
Key projects include but are not limited to:
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Mkuze Regional Airport;
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Jozini Hydro-electric Scheme;
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Makhathini Flats Development (Sugarcane, fruit and vegetables production and processing)
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Expanded timber production;
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Fishing industry based on natural resource harvest supplemented by aquaculture;
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Expanded ha under cashew and coconut production for processing of oils and nuts for export
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Establishment of high value – up market anchor tourism sites to ‘trigger’ further structured investment in the sector
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Production of starch from cassava
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High end hotel resort development
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Game lodge
Umhlosinga Development Agency has been entrusted by Umkhanyakude District Municipality to plan and implement a program of sustainable economic growth and development for the District.
The Agency aims to foster local action to remove barriers and blockages to equitable and sustainable growth and development of the local economy. This includes creating investment opportunities for the District.