A BRIEF ECONOMIC OVERVIEW OF THE LOCAL MUNICIPALITIES IN NKANGALA DISTRICT

Delmas LM: The centre of economic activity in the municipality is Delmas.  The economy of Delmas LM contributes 3, 2% to the economy of the District.  Between 1996 and 2001 the economy grew at a rate of 2, 9%.   The local economy is relatively diversified.  In terms of output and proportional contribution to the local economy, the largest sector is trade, followed by agriculture and mining sectors. The total output of the agricultural sector experienced significant levels of growth while the mining and minerals sector declined.  The sectors which experienced expansion in terms of output were agriculture, manufacturing, trade, transport and finance. Electricity, construction and community services sectors are the smallest sectors in the local economy.

The employment in the municipality has been decreasing albeit at a slower rate.  However, the comparisons between 1998-2001 and 2001-2004 show that mining, manufacturing and finance have been growing, with agriculture shredding noticeably employment. The rte of loss of number of employment opportunities lost is stabilising.

Dr J S Moroka LM:  The local economy is characterised by limited economic activity and relatively large economic concentrations.  Between 1996 and 2001 the economy of the municipality grew at a rate of 1.5%.  The contribution of the local economy to the economy of the District was 4.1%.  The slow rate of economy growth can be attributed to, inter alia, the geographical feature of deep rural location of the municipality.

The local economy of Dr JS Moroka is characterised by dominance of government services sector.  However, the government services sector experienced a decline in the levels of output.  The agricultural sector and community services sectors also experienced a contraction.  However, the trade, transport and mining sectors experience modest growth.  Overall, it is evident that the local economy is experiencing a growth phase.

Emalahleni LM:  The municipality’s economy is one of the largest in the District.  It also hosts a broad range of economic activities.   A large number of mining firms are operational in the economy, including, Anglo Coal, Xstrata, and BHP Billiton.  The mining sector is dominant in the economy, even though the sector is subject to cyclical dynamics.  The mining sector’s contribution to the economy is followed by manufacturing, electricity and trade.  Between 1996 and 2001, the economy grew by 2.7%.  The local economy contributes a remarkable 41.5% to the regional economy

In terms of employment, the bulk of the formal employment opportunities are being provided in the mining sector.  Other dominant sectors in the municipality are manufacturing, trade, community services and government services.  Trade, finance and community services have also contributed in creating employment opportunities

Emakhazeni LM:  The local economy is among the most diversified economies in the District.  The economy is characterised by a comparatively large transport sector.  While the sector is expanding in terms of output, its relative importance in the local context has declined.   All the economic sectors have expanded except the electricity sector.    The growth rate of the economy was a significant 4.4% between 1996 and 2001, although the overall contribution of the economy on the regional economy is a modest 1.4%, it has a potential to grow in the short to medium term.

Construction, trade and government services have increased their comparative share in the economy.  The sectors that lost the largest share of the local economy were manufacturing, mining and community services sectors.  Employment in Emakhazeni is concentrated in agriculture, trade, community and government services.  Agriculture is one of the sectors that shred employment.

The economy is dominated by the mining, energy and manufacturing sectors respectively and the largest economy in the District.  Manufacturing experienced significant increases in the level of output.  The local economy is also host to various Eskom power plants.  The remaining sectors are small and generally tend to play a supportive role.

Due to its contribution in the regional economy the municipality provides a significant number of employment opportunities with the main employing sectors being mining, manufacturing, trade, community services and government services.  However, agriculture, mining and manufacturing are the main sectors that are recorded to have shed employment.

Thembisile LM:  The economy of the municipality is one of the smallest in the District.  Between the period of 1996 and 2001 the economy grew at a modest 2.1%.  The total contribution of the local economy to the District economy was recorded to be 4.7%.