High birth rates and rapid urbanisation is resulting in a rapidly growing Durban Metropolitan Area (DMA) population. This results in an increased demand for jobs and economic growth which is in some instances not sustainable. Population growth rates are, however, beginning to show a decline as a result of smaller family sizes and decreased life expectancy as a result of AIDS. It is thought, however that population pressure is not the primary pressure on the DMA economy.

The transition to an open economy of international competitiveness has not been kind to Durban's productive and economic base. Given SA's endorsement of the Uruguay accord on free trade, many industries moved towards downsizing, right sizing, retrenching and shedding labour. In Durban, about 23% of manufacturing jobs have been lost. Despite this, Durban has experienced a vast injection of capital in the last five years as a result of:

a) an increase in the volume of trade through the port since 1993, which has rejuvenated a complex array of port and industry related services. The harbour is the busiest on the African Continent and acts as a gateway to South Africa and the Indian Ocean Rim countries.

b) a tourism boom, with hotel occupancy rates at 97% since 1996 and a higher share of international tourism since 1994. Durban is South Africa's premier domestic tourism destination and acts as a gateway to the world-renowned Drakensberg Mountains and Zululand game reserves.

c) export oriented growth in some sectors e.g. metal products.