Stats SA has confirmed that KwaZulu-Natal is now leading with a growth rate of 1.1% and remains second in GDP contribution, representing 16% of the national economy.

This is according to the Minister of Trade, Industry and Competition (DTIC) Parks Tau who made the announcement at the KZN Investment Conference.

Present at the conference was the Deputy Minister of Trade, Industry and Competition Zuko Godlimpi, the Premier of the KZN Province Thamsanqa Ntuli and the MEC for Economic Development, Tourism and Environmental Affairs Musa Zondi.

Speaking at the conference, Tau said: “It’s a privilege to acknowledge the significant role KZN plays in driving trade and investment into our economy.

“This conference arrives at an opportune time for strengthening the collaboration between the public and private sectors as we work together to build an inclusive economy and generate jobs.”

According to Tau, since the formation of the Government of National Unity’s (GNU), they have seen dynamic engagement with investors, both local and international.

This has resulted in a positive shift in perceptions toward South Africa's business environment, with investors now viewing SA as a country with renewed optimism, which has boosted business confidence and a willingness to invest here.

“We are pleased to see growing interest in KZN as a key part of South Africa's economic landscape,” Tau said.

Tau said that the department has offered financial and infrastructure support to businesses during Covid-19, social unrest, and floods, as part of their economic recovery efforts in KZN which has been instrumental in helping businesses in the province rebuild swiftly.

“Through Operation Vulindlela, a task team under the Presidency and National Treasury, we are implementing structural reforms to improve the investment environment. In the next phase, we will work with municipalities to strengthen service delivery and support local capacity,” Tau said.

According to Tau, the Presidential eThekwini Working Group is addressing challenges that hinder investors in executing projects, as well as work by the National Logistics Crisis Committee that has led to a 73% reduction in vessel congestion at the Port of Durban since November 2023.

The Freight Logistics Roadmap will also allow for major reform in the freight sector.

Expanding trade and investment is critical for re-industrialising the economy.

“The DTIC remains committed to enhancing our industrial base through sectoral masterplans, and we encourage businesses in KZN to scale up their investments while inviting new investors to take advantage of the province’s potential,” Tau said.

“Our focus is on positioning South Africa as a preferred investment destination and regional hub, encouraging companies to establish their operations here and grow their export reach.”

Many companies have also committed to the Presidential Investment Drive.

Special Economic Zones (SEZs) are also expanding to promote export-led growth, and harnessing the Africa Continental Free Trade Agreement (AfCFTA). He said 2024 marked the beginning of preferential trading under the AfCFTA here in eThekwini.

Companies located here also have access to other trade instruments such as the African Growth and Opportunity Act (AGOA) and the European Free Trade Association-SACU Free Trade Area.

SA’s SEZ Programme has attracted capital investment, with KwaZulu-Natal’s Richards Bay Industrial Development Zone and Dube Trade Port offering world-class infrastructure.

These zones, along with KZN’s industrial parks, are essential for driving industrialisation across the province.

Richards Bay hosts major investments, including Wilmar Industries’ R1.5 billion edible oil refining plant, which supports agro-processing and logistics, and Nyanza Light Metals’ R15 billion titanium dioxide pigment project.

At Dube Trade Port SEZ, 57 investors, including Samsung and AIH-Mahindra, contribute to a wide range of manufacturing sectors.

Tau said that they are embarking on a targeted program of refurbishing Industrial Parks so that they can play the crucial role of creating jobs and stimulating local economic development.

These investments highlight the impact of strong public-private partnerships and underscore the successes possible through collaborative efforts, he said.

“To grow these achievements, we need a unified approach across all levels of government to support economic growth,” Tau said.

IOL Business