kwazulu-natal provincial treasury · the kwazulu-natal province has both growing and maturing...

KwaZulu-Natal Provincial Treasury

UMKHANYAKUDE DISTRICT: SOCIO-ECONOMIC PROFILE

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7.1 Demographic Profile

The KwaZulu-Natal Province has both growing and maturing population, presenting

opportunities and challenges to the province. According to Statistics South Africa mid-year

estimates (2007), the KwaZulu Natal population was estimated at an average size of 10,0

million people. The largest number of these people lived in eThekwini Metro (32.4% of the

provincial population), followed by uThungulu district (10.2%) and uMgungundlovu (10.0%).

UMkhanyakude was the fourth least populated district in the province with approximately 5.9

percent (Figure 7.1).

Figure 7.1: Total Population by DMs, average 2002-2006

Source: Global Insight, 2007

Figure 7.2 shows the distribution of the population across DMs by age group. The largest

proportion of the population in Umkhanyakude was the age group 15-64 years (52.4%) followed

by age group 0-14 years (44.6%). The elderly population contributed the smallest portion of the

total population (4.1%).

A population distribution skewed towards the working-age population has a tendency of

translating to high unemployment levels, particularly if individuals are not appropriately skilled

635,337

966,080

555,142 618,411

463,334

735,274

568,995

986,135

603,118

382,174

3,118,135

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Ugu

Um

gung

undl

ovu

Uth

ukel

a

Um

ziny

athi

Amaj

uba

Zulul

and

Um

khan

yaku

de

uThu

ngul

u

iLem

be

Sison

ke

eThe

kwin

i

Av

era

ge

To

tal P

op

ula

tio

n

Proportions to KZN

Umkhanyakude ,

5.9uThungulu,

10.2

Zululand,

7.6

Amajuba,

4.8

Umzinyathi,

6.4

Uthukela,

5.8

iLembe,

6.3

Sisonke,

4.0

eThekwini,

32.4

Ugu,

6.6Umgungundlovu, 10.0

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for available job opportunities. As a result, the higher number of both young individuals and

people in the labour force overall will require more spending in education (primary and

secondary) and skills development.

Figure 7.2: Total population by age group across DMs; average 2002-2006


The majority of the population in uMkhanyakude and across all DMs was female during this

period (Figure 7.3). Geographically, uMkhanyakude was the most sparsely populated district in

the province, with 0.04 people per km2, against the provincial average of 113. Of 568,9

thousand population, only 4,2 percent people are regarded as urban residents. While this

suggests that there is no pressure on environment and that there could be more available land

for development and agricultural use in this district, it also indicates a potential challenge with

regard to infrastructure palling due to dispersed settlement settings.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Ugu

Um

gung

undl

ovu

Uth

ukel

a

Um

ziny

athi

Amaj

uba

Zulul

and

Um

khan

yaku

de

uThu

ngul

u

iLem

be

Sison

ke

eThe

kwin

i

%

0-14 15-64 65+

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Figure 7.3: Total population distribution by gender across DMs; average 2002-2006

Source:

Global Insight, 2007

40

42

44

46

48

50

52

54

56

Ugu Umgungundlovu Uthukela Umzinyathi Amajuba Zululand Umkhanyakude uThungulu iLembe Sisonke eThekwini

%

Male Female

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7.2 Economic Outlook

7.2.1 Gross domestic product per municipality (GDP-M)

Between 2002 and 2006, the GDPR for KwaZulu-Natal was estimated at an annual average of

R177, 8bn. There was a significant growth of 18.8 percent from R163,9bn in 2002 to R194,7bn

in 2006. UMkhanyakude contributed 1.1 percent to the provincial GDPR, making it the second-

to-least contributor after uMzinyathi. EThekwini (64.6%), uThungulu (9.5%), and

uMgungundlovu (8.5%) made the most contributions (Figure 7.4).

Figure 7.4: Districts contribution to KwaZulu-Natal GDPR, average 2002-2006


Figure 7.5 shows uMkhanyakude’s GDP-M by economic sector between 2002 and 2006. During

this period the economy of the district grew by an annual average of 2.1 percent. The economy

is driven mainly by Community Services, Agriculture, and Trade, together contributing nearly

72.0 percent of the district’s GDP-M.

Finance and Transport were on average the fastest growing sectors in the district at 7.9 percent

and 4.2 percent respectively; Finance saw a sharp rise in average growth between 2005 and

2006 from 2.8 percent to 18.0 percent. Agriculture, on the other hand, slumped from 4.6 percent

in 2005 to -7.0 percent in 2006, and was accompanied in its contraction by Mining which

eThekwini 64.62

Ugu 3.65

uMgungundlovu 8.48

Uthukela 2.48

Umzinyathi 0.79

Amajuba 3.59

Zululand 1.51

Umkhanyakude ,1.07

Uthungulu 9.45

iLembe 3.28

Sisonke 1.08

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experienced consistent negative growth throughout the 5 year period at an annual average of -

0.8 percent.

Figure 7.5: Umkhanyakude GDP-M by Sectors (2002-2006)


7.2.1 International Trade

Figure 7.6 shows the percentage of export, import and trade balance (as a proportion of GDP-

M) across all DMs. It transpires from this figure that the impact of international trade on the

economy of uMkhanyakude is almost negligible. From 2002 to 2006 the district’s imports and

exports were on average 0.4 percent and 0.2 percent of the economy’s GDP-M. Consequently,

the district had a negative trade balance of 0.2 percent of its GDP-M.

Mining

Electricity

TradeAgriculture

ManufacturingConstruction

Transport

Finance

Community services

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

-10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Contribution to GDP-R

An

nu

al G

DP

-R G

row

th

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Figure 7.6: Exports, imports and Trade Balance (percent of GDP-M), average 2002-2006


-20.00

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Ugu

uM

gungundlovu

Uth

ukela

Um

zinya

thi

Amaju

ba

Zulula

nd

Um

khanya

kude

Uth

ungulu

iLem

be

Sisonke

eThekwin

iKZN

%

export/GDP import/GDP total bal/GDP

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7.3.1 The labour market 7.3.1.1 The labour force and the economically active population

Between 2002 and 2006, the provincial labour force1 approximated at 6,0 million people per

annum (approximately 60.0 percent of total provincial population). Of this total, the economically

active population (EAP)2 was approximately 3,1 million. More than 1,4 million of these people

were in eThekwini, followed by uMgungundlovu (360,000) and uThungulu (221,000).

UMkhanyakude’s EAP size comprised approximately 90,000 people. This was larger only than

that of uMzinyathi and slightly smaller than Sisonke’s (Figure 7.7)

Figure 7.7: The economically active population by municipal district, average 2002-06

Source: Global Insight, 2007; Mahlatsi, 2007

1 Labour force is defined herein as population aged 15-64 years.

2 The category EAP is made up of people who are either employed or unemployed. The employed consists of

employers and employees, while unemployment are those not having a job but are actively seeking one (official

definition), or they do not have a job, are actively seeking one or have given up searching yet still available for work

at anytime (expanded definition).

Ugu

Uthukela

uMzinyathi

AmajubaZululand

uMkhanyakude,

29.6%, 89,996

uThungulu

iLembe

Sisonke

50,000

100,000

150,000

200,000

250,000

25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0%

eThekwini EAP

(1,444,201; 66.8%)

uMgungundlovu

(359,942; 60.6%)

KwaZulu-Natal

(3,103,000; 52.5%

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As a proportion of the district labour force3, uMkhanyakude’s EAP was about 27.0 percent. The

district was the least economically active in the province during this period.

7.3.1.2 Unemployment

During the review period, there were about 61,000 unemployed people in the district. This was

the third lowest level of unemployment after Sisonke (49, 000) and uMzinyathi (59,000).

During the same period, the district’s unemployment rate4 was among the highest in the

province (64.6%). It was lower only than that of uMzinyathi, and a massive 19.1 percentage

points above the provincial average.

Figure 7.8: Unemployment rate by district, average 2002-2006


As with the other districts, uMkhanyakude’s unemployment rate was more pronounced among

the Black population group (65.4%). The respective rates for Indians, Coloureds and Whites

were 23.3, 13.1 and 6.3 percent. This was in line with the average provincial unemployment

structure.

3 EAP/LF = Labour participation rate or ratio.

4 Expanded definition; includes those unemployed but not actively seeking a job.

72.0%

64.6%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Kw

aZulu

-Nata

l

eThekw

ini

Metr

opolita

n

Munic

ipality

DC21:

Ugu

DC22:

uM

gungundlo

vu

DC23:

Uth

ukela

DC24:

Um

zin

yath

i

DC25:

Am

aju

ba

DC26:

Zulu

land

DC27:

Um

khanyakude

DC28:

Uth

ungulu

DC29:

iLem

be

DC43:

Sis

onke

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7.3.1.3 Employment

7.3.1.3.1 Total employment

During the period under review, KwaZulu-Natal employment totaled an annual average of 2,1

million workers. UMkhanyakude’s employment was the second lowest in the province; higher

only that that of uMzinyathi (Figure 7.9).

Figure 7.9: Total employment by district, average 2002-2006


7.3.1.3.2 Formal employment

The district’s formal employment was among the relatively lower levels at 69.8 (Figure 7.10).

The formal employment sector in the district was dominated by the Community Services sector

at 39.0 percent (Figure 7.11). Education and Health sectors were equally important contributors

to the sector’s employment, together accounting for 62.5 percent (Figure 7.11). This shows that

the provincial education-and-health inclined provincial expenditure budget reaches this district

proportionately, as with uThungulu and iLembe.

36,01833,830

-

50,000

100,000

150,000

200,000

250,000

DC21:

Ugu

DC22:

uM

gungundlo

vu

DC23:

Uth

ukela

DC24:

Um

zin

yath

i

DC25:

Am

aju

ba

DC26:

Zulu

land

DC27:

Um

khanyakude

DC28:

Uth

ungulu

DC29:

iLem

be

DC43:

Sis

onke

eThekwini

1,117,578

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Figure 7.10: Formal employment within districts (%), average 2002-2006


Figure 7.11: UMkhanyakude formal employment by economic sector (%), average 2002-2006


77.7%

74.8%

76.4%

64.4%

69.8%

20.0% 40.0% 60.0% 80.0% 100.0%

KwaZulu-Natal

eThekwini Metropolitan

Municipality

DC21: Ugu

DC22: uMgungundlovu

DC23: Uthukela

DC24: Umzinyathi

DC25: Amajuba

DC26: Zululand

DC27: Umkhanyakude

DC28: Uthungulu

DC29: iLembe

DC43: Sisonke

Construction

Mining

Electricity

Trans

Finance 4%

Households 14%

Trade 4%

Agric 30%

Manufacturing 4%

Public admin and defence

Other service activities

Health and social work

Education

Community services 39%

5%

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Agriculture was the second major employment sector in the district, contributing a solid 30.0

percent to the district’s total employment. A larger part of this sector’s employment was

recorded in Agriculture and Hunting industry (or sub-sector) than in Forestry and Logging.

Nonetheless, the overall contribution of this important sector to employment in uMkhanyakude

has been shrinking since 2003 (Figure 7.12). This needs urgent investigation and, if possible,

revival.

Figure 7.12: Agriculture formal employment trends (levels) and by industry (%), average 2002-2006


7.3.1.3.3 Informal employment

KwaZulu-Natal’s informal sector employment, recorded mainly in Trade, Construction,

Community Services, Manufacturing, Transport and Finance5 sectors, was generally skewed

towards the Trade sector. This was true in all but four districts, each having more than half the

employment in this sector involved in trade of some kind; uMkhanyakude was no exception.

Unlike manyother districts, the district also had a peculiarly high informal employment in

Community Services (Figure 7.13).

5 These are the sectors recorded by Global Insight; they are easier to monitor and collect data thereon than the

remaining others.

Agriculture and hunting

81%

Forestry and logging

19%

5,566

5,937

6,112 6,059

5,422

5,0504,960

4,800

5,800

6,800

2000 2001 2002 2003 2004 2005 2006

Agri

c e

mplo

ym

ent

- le

vels

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Figure 7.13: Informal employment by district and main economic sector (%), average 2002-2006


Figure 7.14: UMkhanyakude formal employment in Trade (%), average 2002-2006


Figure 7.14 shows the distribution of formal employment in the Trade sector. Unlike in

uThungulu, uMgungundlovu and iLembe, uMkhanyakude’s formal employment in trade was

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Kw

aZulu

-Nata

l

eThekw

ini

Metr

opolita

n

Munic

ipality

DC21:

Ugu

DC22:

uM

gungundlo

vu

DC23:

Uth

ukela

DC24:

Um

zin

yath

i

DC25:

Am

aju

ba

DC26:

Zulu

land

DC27:

Um

khanyakude

DC28:

Uth

ungulu

DC29:

iLem

be

DC43:

Sis

onke

Trade Constr Comm serve Manufacturing Trans Finance

Retail trade and repairs of

goods, 1.0%

Wholesale and commission

trade, 37.6%Hotels and restaurants,

43.9%

Sale & repairs of motor

vehicles, sale of fuel,

17.5%

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concentrated in three of the four main industries, with ‘Retail Trade and Repairs of Goods’

contributing only 1.0 percent. The informal employment sector could probably have followed a

similar structure. The dominance by Hotels and restaurant could result from the district’s

strategic geographical position; the famous Elephant Coast, home to South Africa’s largest herd

of indigenous African elephants is in this district.

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7.4 Land cover and use In 2006, uMkhanyakude’s share of the KwaZulu-Natal soil was a gigantic 13.7 percent. This was

the second largest district after Zululand (15.9%). However, only 1.7 percent of this was used

for permanent cultivation, and an additional 11.0 percent was cultivated temporarily (Figure

7.15). As can be recalled, a solid 30.0 percent of workers in the district were engaged in

Agriculture – particularly Agriculture and Hunting, and the same sector’s employment has been

collapsing since 2003, moreover it transpires hereunder that the falling employment sector is

actually very tiny. This is a warning bell, and ‘business unusual’ should be taken ashore this

district.

Figure 7.15: uMkhanyakude land use, 2006


Unimproved grassland,

12.4%

Thicket & bushland (etc),

23.6%

Forest plantations, 4.3%

Cultivated temporary,

11.0%

Cultivated permanent,

1.7%

to expand

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7.5 Crime Between 2002 and 2006, there was a consistent decline in reported incidences of crime in the

province (2.4 percent annual average). UMkhanyakude, and uThungulu to a less extent, was

the only district resistant to declining crime rates. However, 2003 forward saw a comprehensive

decline, though with differing magnitudes; the provincial collapse rate in crime was 5.1 percent,

while Amajuba, Sisonke, uThukela and Zululand enjoyed the highest decline of at least 8.0

percent each. UMkhanyakude’s crime fall was the second lowest after eThekwini’s. This was a

great achievement, though, after the experience of a positive average growth for 2002-2006.

Figure 7.16: UMkhanyakude crime rate by category (per 100,000 people), average 2002-2006 & 2003-2006


During the period 2002 to 2006, the most common crimes in this district were theft, assault and

burglary. However, these crimes were not too pronounced as the highest rate was 400

incidences per 100,000 people (Figure 7.16). Common assault and robbery with aggravating

circumstances were on an increase between 2003 and 2006. These were also very rare (less

than 150 per 100,000 people) and can thus be easily conquered.

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

All t

heft

not

mentioned

els

ew

here

Assault w

ith t

he

inte

nt

to inflic

t

grievous b

odily

harm

Burg

lary

at

resid

ential pre

mis

es

Com

mon a

ssault

Robbery

with

aggra

vating

circum

sta

nces

Aggra

vate

d r

obbery

- G

enera

l

avg 02-06

avg 03-06

Crime incidents per 100,000 people

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7.6 Social Development

UMkhanyakude is one district with dire development challenges. Figure 7.17 reveals that on

average, income distribution among households has also been wide. On average, a cumulative

87.5 percent of households in the district earned at most R54,001 per annum at least 99.1

percent earned not more than R192,000. This means that at lest R168,000 was accrued to only

less than one percent of the district’s households.

Figure 7.17 also shows the urbanisation rate, poverty rate, Gini coefficient and Human

Development Index (HDI) for this district. It is clear from this graph that the proportion of people

living in poverty in this district outnumbers any other in all the other districts, and this has been

quite stagnant. However, a slight decrease was recorded between 2005 and 2006. The district

is dominantly rural, with urbanisation rate of only 0.4 percent. Unlike in other districts, the Gini

coefficient in uMkhanyakude has also generally stayed the same, all these (and other)

indicators leading to a stagnant HDI.

Figure 7.17: UMkhanyakude crime rate by category (per 100,000 people), average 2002-2006 & 2003-2006


0.0, 0

89.9, 54001

99.1, 192001

100.0, 360001

0

50000

100000

150000

200000

250000

300000

350000

400000

0.0 20.0 40.0 60.0 80.0 100.0 120.0

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

2002 2003 2004 2005 2006

Urbanization rate Poverty rate Gini coeff HDI

kwazulu-natal provincial treasury · the kwazulu-natal province has both growing and maturing...

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