Ugu South Coast Development Agency Ugu South Coast Development Agency
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Manufacturing
Park Rynie lndustrial Development.
Clothing and textiles.
Furniture manufacturing and incubation.
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Craft commercialisation.
Timber processing.
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Tourism
Investigate a Special Economic Zone (EPZ),
specifically a Tourism Development Zone (TDZ).
Development of adventure tourism cluster at Oribi Gorge.
Development of a conference/convention centre.
Hotels and beachfront leisure facilities.
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Development of tourist packages for
domestic markets.
African and Asian cuisine outlets.
Horse Shoe Farm Agri-tourism.
Nature/game reserve.
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Mining
Small-scale quarrying.
Formalisation of sand-winning.
Small-scale building material mining.
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Green Economy
Bio fuels production (such as the Hans Merensky project).
Biomass production.
Green buildings, materials and construction products.
Hydropower.
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Solar energy.
Waste and wastewater management.
Water and water technologies.
Wind energy.
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Agriculture
Agri-processing linked to Dube Tradeport.
Timber beneficiation.
Transition from subsistence to commercial farming
(incl Mariculture).
Expansion of macadamia, sugarcane, timber, bananas,
and vegetable production.
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Compartmentalised cold storages.
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Food processing industry opportunities (incl.
fruits and vegetable processing and
canning industry).
Greenhouse farming of cut flowers.
Seed production and processing.
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Infrastructure Development
Port Shepstone and Scottburgh beachfront re-development.
Ugu Sports Leisure Centre.
Small craft harbour.
Margate Airport upgrade.
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Upgrade beach facilities and tidal pools.
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Margate Olympic swimming pool.
Development of a Technology Hub.

Manufacturing

The manufacturing sector contributes approximately 19% to total GVA within the Ugu region, and has experienced an average annual growth rate of 6% between 2000 – 2011. The graph below indicates the contribution of the manufacturing sectors in Ugu DM in 2011. The food, beverages and tobacco industry contributes the most (35%) to the manufacturing industry in Ugu.

This is followed by the petroleum products, chemicals, rubber and plastic sector (16%), the furniture and other manufacturing sector (12%), the wood, paper, publishing and printing sector (9%), the metals, metal products, machinery and equipment sector (9%) and the textiles, clothing and leather goods sector (7%).

The other non-metal mineral products sector and the transport equipment sector contribute 5% each to the manufacturing sector. The sectors that contribute the least to the manufacturing sector are the electrical machinery and apparatus sector (1%) and the radio, TV, instruments, watches and clocks (1%).

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The table below indicates the growth rate for different industries found within the manufacturing sector in the short and medium term. Overall the manufacturing sector has grown from R1 447 million in 2000 to R 2 838 million in 2011. It has experienced a constant 6% growth rate in both the short and medium term.

The foods, beverages and tobacco industry, which is the largest contributing industry to the manufacturing sector, has experienced a 7% growth rate in the long term, however there has been a slight decline over the short term which indicates a growth rate of 6%.

The textiles, clothing and leather goods industry has experienced the highest growth rate at 9% in the short term followed by the radio, TV, instruments, watches and clocks industry at 8%. The wood, paper, publishing and printing industry has experienced the smallest growth rate in the short term at 4%.

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Regardless of the performance of the sector it appears to remain particularly vulnerable to global and macro-economic influences. The PSEDS notes that nearly 75% of manufacturing enterprises in Ugu are small enterprises (less than 50 employees), with a handful of manufacturers in Ugu being medium and large businesses. This emphasises the vulnerability as of the sector to international market trends, as small-enterprises struggle to compete with increasing international pressure, particularly from Asia.

Manufacturing remains clustered close to the major nodes of Port Shepstone and Marburg, due to the availability of serviced land and connectivity to the N2 network, with a 2007 assessment noting that 75% of the 242 registered manufacturing enterprises in Ugu are located in the Hibiscus Coast Municipality, mostly in the Port Shepstone / Marburg and Margate areas28. With regards to key industrial nodes, the Ugu GDS notes that there are three prominent new industrial developments in the district with high vacancy rates,29 namely Marburg extension 27, Shelley Beach Business Park and the Margate Airport industrial.

Perceptions of high rates and service charges in these areas may be inhibiting uptake. There is some expansion of industrial activity in the Park Rynie – Umzinto corridor, however these activities need to be expedited and marketed. Very limited manufacturing occurs outside of these key nodes although potential does exist for the establishment of small-scale manufacturing activities within decentralised nodes, specifically for products that provide backward linkages to the agricultural sector. In addition, the GDS notes that industries such as food and beverage production and furniture and wood products provide excellent opportunities for small-scale manufacturers to contribute to the value-chain30.

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KZN South Coast Map

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