International Trade & Investment
South Africa has very unique position in world economics. Long seen as an emerging economy and developing nation, it has first-world infrastructure, an economy that has outdone many developed nations and is a partner with the largest economies. Key to this is the BRICS partnership which has provided SA with centre-stage position
Although economic growth has shrunk and inflation has increased, an expansionary budget has given South African businesses many opportunities. State spending continues to stimulate the economy. Government spending on infrastructure tallied R1trn over the past five years and will amount to R847bn over the next three years.
Investment in infrastructure is viewed as a key means of improving the economy’s competitiveness, especially that of its domestic producers. Since the global financial crisis, government has initiated a coordinated infrastructure investment programme, organised into 17 Strategic Integrated Projects (SIPs) to catalyse opportunities in mining, industry, agriculture and services across the country.
Of the 17 SIPs, 9 are located within the Province of KZN which means that bulk of the spending will take place in the province. This positions KZN as a major economic powerhouse and a contender to Gauteng in GDP contribution. The KZN Provincial Government has started to implement strategies of the Provincial Growth Development Plan which are in line with the National Development Plan Framework.
The Port of Durban, the biggest and busiest harbour in Africa, together with Richards Bay are responsible for 60% of all goods entering or leaving Southern Africa. The expansion of the South Industrial Basin and the Deep Water Dug-Out Port at Isipingo in conjunction with the Dube Aerotropolis makes the province a significant player in global logistics. This means that KZN is fast becoming a hub for global business. The private sector has started to take note of this and a number of significant investments have been made in the province. The Trade Committee of Minara Chamber continues to engage with government through our involvement in the KZN Economic Council, with organised business in KZN Business Chambers Council and other business organisations. We continue to provide our members with the latest information on business opportunities and trends and look forward to new programs in 2015.