The Durban EDGE

19/12/2023

Durban has long been recognised as one of South Africa’s key economic hubs, contributing substantially to the nation’s trade. This analysis aims to dissect Durban’s trade economy, particularly focusing on its import-export balance and the role of trade in the city’s economy. It’s noteworthy that both activity at the port and Durban’s economic growth have been in decline since the peak years of 2005-2007, a downturn triggered by the 2008-2009 global recession. The severe contraction and subsequent shutdowns in the manufacturing sector weakened both the city’s economic activities and port operations, a trend that persists.

Trade in Durban contributes about 30% of the city’s Gross Domestic Product (GDP). Despite this significant contribution, the city has been grappling with a persistent trade deficit, which has become more pronounced over the past decade. This growing gap between imports and exports is crucial to understanding Durban’s overall economic health.

The port, which is critical to regional and international trade, has been experiencing significant backlogs and inefficiencies. These have led to a decline in ship traffic, exacerbating the trade imbalance. The implications of this extend well beyond trade numbers. Supply chains have been disrupted, driving up the cost of goods.

TRADE PERFORMANCE

An analysis of trade data reveals a positive performance in 2023Q3, although the imbalance between the city’s exports and imports remains a concern. In the yearly comparison between (Q4 2021 to Q3 2022) and (Q4 2022 to Q3 2023), there was a noticeable increase in imports, from R129.6-billion to R138.1 billion. Exports during this period rose from R92.8 billion to R114.2 billion – insufficient growth to narrow the expanding gap caused by the increase in imports

A more detailed analysis of the more recent quarters, specifically from the second quarter of 2023 (Q2 2023) to the third quarter of 2023 (Q3 2023), underscores this trend. Here, imports showed a modest rise from R35.5 billion to R36.4 billion, while exports increased from R28.1billion to R31.3 billion. This ongoing disparity between imports and exports underscores the need for strategic interventions to address the trade deficit.

For more on this datastory, click on this link https://economy.edge.durban/data-story/exports-and-imports-up-in-durban-for-q3-2023

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KEYWORDS: Exports, Imports, Trade, Key Economic Hubs, Trade Balances,

The Durban EDGE is eThekwini Municipality’s platform to provide cutting-edge economic intelligence and insight to economic decision-makers. The brand was established in 2011 by the City’s Economic Development Unit.

07/12/2023

The value of building plans approved experienced a significant fluctuation over the last quarters. The highest value was recorded in Q2 2022/23 at R6,5 billion, while the lowest was in Q1 2023/24 at R1,5 billion. The highest number of plans approved was in Q2 2022/23 with 1376, while the lowest was in Q3 2022/23 with 849 followed by Q1 2023/24 with 979.

When comparing year-on-year data, the value of building plans increased by 21.4%, going from R11.3 billion in Q2 21/22 - Q1 22/23 to R13.7 billion in the cumulative period the aggregate of Q2 22/23 - Q1 23/24. In contrast, the year-on-year number of approved building plans decreased by 7.7%, falling from 4,685 to 4,322 in the same Q2 22/23 - Q1 23/24 period. This shift reflects a similar degree of instability in construction activity, emulating the volatility trend observed in the economic growth of the construction sector.

For more on this data story, click on this link: https://economy.edge.durban/data-story/the-approval-of-building-plans-demonstrates-a-decrease-in-q1-2023-24

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KEYWORDS: Durban Development, Building Plans, City Growth, Economic Development, Building Plans Update

04/12/2023

The Durban Edge in collaboration with the Durban Chamber of Commerce and Industry on Monday, 27 November 2023, hosted an exclusive seminar directed to those individuals who seek to stay ahead in the ever-evolving world of international trade at uMhlanga Rocks. Entitled “Embracing export opportunities in a dynamic world – the BRICS+ group and beyond” and facilitated by Mr. Justice Matarutse, eThekwini Municipality’s Information and Research Senior Manager, the seminar was dedicated to exposing attendees to viable export opportunities and give a comprehensive analysis of the intricate dynamics within the BRICS+ framework in order to empower them in their future global trade decisions.

Divided into two sessions, the Seminar featured guest speaker Dr. Martin Cameron, Managing Director at Trade Research Advisory (Pty) Ltd, whose presentation focused on the importance of embracing change in a changing world as the BRICS and BRICS+ countries did when forming the block of nations. His presentation took the audience through BRICS’s timeline of events and milestones leading up to the second expansion which we now know as the BRICS+ block of Nations. He further delved into vital statistics looking at various items such as GDP growth in and amongst BRICS+ member nations, trade statistics (both import & exports) of China and the rest of the BRICS+ member nations in context as well as sharing numbers that look at trade between BRICS and other non-BRICS nations showing that Europe and the USA remain the largest investor in BRICS.

The seminar ended with a panel discussion featuring three prominent industry leaders, namely; Mr. Warren Fanner of First National Bank, Mr. Bester Swart, Managing Director of Toyota Parts and Distribution Centre & Ms Nerish Jairaj, Executive Director at the South African Footwear and Leather Export Council who connected virtually. These speakers’ presentations focused on how their sectors overcame challenges they faced sue to either the COVID-19 pandemic, the war between Russia and the Ukrain as well as intra-continental geopolitics.

For more information on this seminar go to our portal on https://edge.durban

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KEYWORDS: BRICS, BRICS+, Global Trade, Trade Opportunities

28/11/2023

In the third quarter of 2023 (2023Q3), Durban’s strict unemployment rate rose to 22.5%, a significant increase of 1.8 percentage points from the previous quarter (2023Q2). This divergence highlights the varied economic conditions within the KZN province, where overall KZN’s regional trends showed a decrease in unemployment, but Durban, a key economic hub, struggled with increasing unemployment.

Durban's labour market is facing a challenging period. Quarter-on-quarter, unemployment has risen sharply, with 34,000 more job seekers searching for jobs without success. Meanwhile, the number of employed people has decreased by 11,000 quarter-on-quarter and 5,000 year-on-year, reflecting the impact of an economic slowdown. In 2023Q3, the employment absorption rate dropped to 46.1%, indicating tougher conditions for job seekers. The city experienced a surge in job seekers as the number of discouraged workers decreased by 3,000 and 12,000 more previously inactive individuals entered the job market, possibly driven by financial needs. Durban remains resilient, adapting to new economic realities, with the labour force presenting a complex dynamic of growing job-seeking activity amidst constrained employment opportunities. This data further indicates that Durban’s economic recovery has come to a halt, and urgent intervention is required.

For more on this data story, click on this link https://edge.durban/dataset

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KEYWORDS: Durban, Jobs, Labour Statistics, Labour Markets, labour trends, job seeking

EThekwini Municipality

27/11/2023

Stay ahead in the dynamic landscape of international trade with the EDGE seminar, "Realistic Export Opportunities in a Changing World." This session is currently underway and offers a deep dive into the latest geopolitical shifts and developments in global trade. Our keynote speaker, Dr. Martin Cameron, Managing Director of Trade Research Advisory (Pty) Ltd, provides a comprehensive analysis of export opportunities within the BRICS+ Group and beyond.

Dr. Cameron's presentation delves into the rise of the BRICS and BRICS Plus groups, examining key statistics and the intricacies of intra-BRICS relationships. Engage in a thoughtful exploration of the potential advantages of expanding trade with BRICS Plus members and assess the role of China in this context.

Follow our page and portal for more on this enlightening session, where you'll gain insights into emerging opportunities for export growth and diversification, specifically tailored for South African exporters. Don't miss out on these crucial perspectives for staying competitive in international trade.

KEYWORDS: Global Trade, International Trade, BRICS+, BRICS Insights, Economic Intelligence

14/11/2023

You are cordially invited to the Durban Edge Seminar in collaboration with the Durban Chamber of Commerce and Industry (DCCI). This event will be designed to the exploitation of viable export opportunities and a comprehensive analysis of the intricate dynamics within the BRICS+ framework

The seminar will delve into previously unexplored prospects for exports, encompassing both the African continent and the global stage with Particular emphasis on key sectors, including textiles, agriculture and manufacturing highlighting their substantial export potential

Please read the poster attached for more details.

The seminar details are as follows:
Monday, 27 November 2023
09:00 - 12:00
FNB Acacia House, 2 Kikembe Drive, Umhlanga Rocks

To RSVP click on this link: https://forms.office.com/r/hVJCV33ARn?origin=lprLink

For more information on this seminar, please contact Siphesihle Thusi on [email protected] OR Sine Mhlongo on [email protected]

Looking forward to a fruitful discussion with you

EThekwini Municipality Durban Chamber of Commerce and Industry

The Durban EDGE is eThekwini Municipality’s platform to provide cutting-edge economic intelligence and insight to economic decision-makers. The brand was established in 2011 by the City’s Economic Development Unit.

13/11/2023

n 2023Q2, South Africa's GDP showed modest growth at 0.6% (R4, 63 trillion), slightly better than 2023Q1's 0.4% (R4, 61 trillion) expansion. The major contributor was the manufacturing sector with 2.2% growth, and this was attributed to manufacturers gradually adjusting to periodic power outages.

Structural issues i.e. high interest rates continue to pose challenges for consumers and have hindered more significant growth in the country, despite a GDP revision from 0.1% to 0.9% for 2023 by the IMF. Power outages combined with sluggish growth further cloud economic prospects.

Durban's GDP declined to 0.5% in 2023Q2, in contrast to the national trend. However, there were glimmers of positivity in the manufacturing and agriculture sectors. Durban's Business Confidence Index fell to 37.28 in 2023Q2, down from 43.27 in 2023Q1. Durban faces its complexities, with varied sectoral trends in business confidence, i.e. manufacturing saw a slight uptick, and this likely attributed to some businesses turning to other alternative sources of energy. These economic trends emphasize the need for tailored strategies that are crucial to fostering growth in sectors.

For more on this data story, click on this link: https://economy.edge.durban/
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KEYWORDS: GDP, Economic Insight, Durban Economy, South African Economy, Business Confidence, Durban’s GDP


EThekwini Municipality

The Durban EDGE is eThekwini Municipality’s platform to provide cutting-edge economic intelligence and insight to economic decision-makers. The brand was established in 2011 by the City’s Economic Development Unit.

27/10/2023

In the first quarter of the 2023/24 fiscal year, the strategic service delivery unit with the highest weighted spending rate[1] is Housing, contributing R174 million to the total expenditure of R598 million. This is followed by Engineering at R99 million and both Electricity R76 million and Economic Development & Planning at R70 million. Water trails closely behind with a weighted spending rate of R67 million Notably, certain key departments have spent less than 1% during this period, including the Transport Authority and Sanitation, each with R37 million and R32 million expenditure, as well as Solid Waste, which has a minimal spending rate of R9 million.

For more on this data story, click on this link: https://edge.durban/dataset/edge-economic-data-story/resource/9bebe9f3-e5e7-4fc8-983b-89ec2fdc17de

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KEYWORDS: Housing Units, Capital Expenditure, Economic Development

EThekwini Municipality

06/10/2023

EThekwini Municipality 's The Durban EDGE and Information Management Unit in partnership with Innovate Durban and the US Embassy and Consulate of South Africa in Durban will be hosting a Seminar titled "New Solutions | The Future of A.I. Enabled Smart Cities".

Discover the boundless possibilities of Artificial Intelligence in reinventing public service delivery and operational efficiency. Join us for an enlightening series of talks, panels, and interactive sessions, featuring local and international experts. This webinar will delve into innovative applications of AI, from creating smart urban ecosystems to ensuring equitable service delivery in eThekwini. Key Note speaker for this webinar is Professor Ae Chun, a visiting research professor and the director of the Information Systems and Informatics program at the City University of New York College of Staten Island, and a professor of the Computer Science Ph.D. Program and Data Science Master’s Program at the CUNY Graduate Center. Her expertise areas include data management, data analytics, machine learning and knowledge-based approaches.

🤝 Who Should Attend
Government officials, policymakers, entrepreneurs, students, and anyone passionate about leveraging technology for a more prosperous and sustainable eThekwini.

Interested stakeholders are invited to register by clicking on this link: https://forms.office.com/r/sXwJPLa75P

Don’t forget to like 👍 and follow our page to keep up to date with economic stats and insights.

KEYWORDS: Artificial Intelligence, Innovation, New Solutions, Smart urban Ecosystems

The Durban EDGE is eThekwini Municipality’s platform to provide cutting-edge economic intelligence and insight to economic decision-makers. The brand was established in 2011 by the City’s Economic Development Unit.

05/10/2023

Recent research reveals a fascinating shift in property development dynamics in eThekwini, South Africa. The traditional CBD is losing its dominance to the northern suburb of uMhlanga, signaling a decentralization trend seen in major cities.

o Rentable office space has boomed in uMhlanga, growing by 83% over a decade, far outstripping Durban central's modest 6% increase.

o Office vacancy rates tell a similar story: uMhlanga maintains a low vacancy rate at 9%, while Durban central struggles with rates up to 23%.

o Business and commercial property data showcases uMhlanga's appeal, with almost three times as many new properties compared to Durban central.

Durban central remains vital for job creation, boasting more FTE jobs and firms. Notably, initiatives are underway to rejuvenate the city, including demolishing problem buildings and exciting projects like Durban Film City and a logistics hub.

In essence, eThekwini is witnessing a transformation in its property landscape, with uMhlanga on the rise. Yet, Durban central still plays a pivotal role in job creation and business activity.

For more on this data story, click on this link https://economy.edge.durban/data-story/umhlanga-cbd

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KEYWORDS: Durban CBD, uMhlanga, Office spaces, commercial property data, urban revitilization, property trends

18/08/2023

Durban's employment landscape underwent changes during the second quarter of 2023. The city saw a slight increase in its unemployment rate, rising from 19.4% to 20.7%. This rise was influenced by a surge of 27,600 individuals actively seeking employment, reflecting a heightened interest in job hunting.

Amidst these dynamics, a promising development emerged in 2023Q2, KZN recorded the third largest employment increase and Durban employed 10,800 more individuals compared to the previous quarter, indicating a modest improvement in successful job placements.

Notably, the reduction of 26,800 quarter-on-quarter and 67,000 year-on-year discouraged work seekers indicates a positive shift as more job seekers regain confidence in the market and rejoin the active job pursuit.



For more detailed data and further insights, go to The Durban EDGE portal: https://edge.durban/dataset/quarterly-labour-force/resource/c3cd61e6-16d8-4a0d-8918-cce6d5cde094

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KEYWORDS: Economic Analysis, Employment Trends, Durban Employment Trends, Employment insight, Data Insight

18/08/2023

In the 2022/23 financial year, the city approved a total of 4,748 building plans, marking a 3.7% increase from the previous year. However, there was a 9.7% decline in total value, reaching R10.0 billion compared to R11.0 billion in 2021/22.

Quarter-on-quarter analysis shows impressive growth of 31.9% in approved building plans. The North region led the pack with 298 plans, followed closely by the outer west (273), inner west (229), central (226), and south (104). The additions and alterations category claimed the largest share at 66.5%, followed by residential plans at 31.8%. Commercial and industrial plans made up 0.9% and 0.8%, respectively.

Notably, most approved industrial building plans in Q4 came from the north and central regions.

To read more about these building plans, go to the Durban EDGE portal by clicking on this link: https://economy.edge.durban/

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KEYWORDS: Durban Development, Building Plans, City Growth,