|
Overview
The Durban
Metropolitan Area (DMA) has a large and diversified economy
with strong manufacturing, tourism, transportation, finance
and government sectors. It's coastal location and large port
gives it comparative advantage over many other centres in
South Africa for export-related industry. Durban's mild
climate, warm marine current and culturally diverse population
has also provided a drawcard for tourism to the
region.
There has, however, been little growth in the number
of jobs provided by DMA's formal sector over the past 20
years. The manufacturing sector, which is second only to
government in the number of jobs provided, has been shedding
jobs as firms' restructure and become more capital intensive.
High rates of crime have
become a disincentive to growth in tourism and many other
sectors. Despite a dynamic and growing small and micro
business sector, the DMA has very high rates of unemployment,
reaching over 30% in some areas of the city. There are still
few economic opportunities in the former township
areas.
Durban's economic contribution to the region
|
The Durban Metropolitan Area is the main
economic driver in KwaZulu-Natal, contributing over half of the
province's output, employment and income. In national terms,
Durban is the second most important economic complex
after Gauteng, accounting for 15% of national output, 14%
of household income and 11% of
national employment. Regional development corridors link Durban northwards to
Richards Bay and Maputo, and westward to Pietermaritzburg
and Johannesburg. |
 |
Informal Sector
The inability of the formal sector of
the economy to provide sufficient employment opportunities for
Durban's growing population has led to the development of a
fast growing informal sector. It is thought that about 16% of
the labour force is active in the informal sector. Very few
people in the informal sector appear to be involved in
manufacturing activities. Most people provide services for low
pay (such as domestic work) followed by trading, catering and
accommodation. It is expected that future growth will occur in
the trading sector. There are some 20 000 street traders in Durban
including a Muthi
Trade of regional importance.
The DMA is conducting a study on informal economic
activity in low-income areas. It is a generally acknowledged
fact that many informal activities are under-reported in
national and other statistics. Often only the most visible
forms of activity are known about (e.g. street trading) and
home based work is often missed altogether.
Durban's economic structure
Spatial distribution of economic
activity
| 
