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KwaZulu-Natal Provincial Treasury
UMKHANYAKUDE DISTRICT: SOCIO-ECONOMIC PROFILE
Page 2 of 17
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
Page 3 of 17
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
Source: Global Insight, 2007
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+
Page 4 of 17
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
Page 5 of 17
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
Source: Global Insight, 2007
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
Page 6 of 17
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)
Source: Global Insight, 2007
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
Page 7 of 17
Figure 7.6: Exports, imports and Trade Balance (percent of GDP-M), average 2002-2006
Source: Global Insight, 2007
-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
Page 8 of 17
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%
Page 9 of 17
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
Source: Global Insight, 2007
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
Page 10 of 17
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
Source: Global Insight, 2007
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
Page 11 of 17
Figure 7.10: Formal employment within districts (%), average 2002-2006
Source: Global Insight, 2007
Figure 7.11: UMkhanyakude formal employment by economic sector (%), average 2002-2006
Source: Global Insight, 2007
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%
Page 12 of 17
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
Source: Global Insight, 2007
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
Page 13 of 17
Figure 7.13: Informal employment by district and main economic sector (%), average 2002-2006
Source: Global Insight, 2007
Figure 7.14: UMkhanyakude formal employment in Trade (%), average 2002-2006
Source: Global Insight, 2007
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%
Page 14 of 17
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.
Page 15 of 17
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
Source: Global Insight, 2007
Unimproved grassland,
12.4%
Thicket & bushland (etc),
23.6%
Forest plantations, 4.3%
Cultivated temporary,
11.0%
Cultivated permanent,
1.7%
to expand
Page 16 of 17
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
Source: Global Insight, 2007
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
Page 17 of 17
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
Source: Global Insight, 2007
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
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