Durban - Cooperative Governance and Traditional Affairs (COGTA) Minister, Dr Nkosazana Dlamini Zuma says good governance is vital, especially in KwaZulu-Natal where the economy has been disrupted.
Dlamini Zuma, who was speaking at the Durban International Convention Centre at a seminar on good governance and accountability on Monday, noted that KZN was one of the hardest hit provinces by Covid-19, the recent floods and social unrest, all of which had exacerbated hunger, poverty, and inequality in a province that hosted five of the country’s ten poorest districts.
She stressed that businesses in the province, and overall business confidence could ill afford any more economic turbulence or devastation
“It is befitting that we place into sharp focus the matter of a disrupted economy here in KZN, because this province has borne the brunt of economic shrinkage which was about 0.7% in the second quarter of 2022.”
She said that economic activity in the manufacturing sector, the largest industry in KZN, shrank by 5.9% in part due to the impact of flooding in KwaZulu- Natal, which left more than 400 people dead and wrecked vital infrastructure in April.
“Given this, it is crucial that KZN’s economy is rebuilt for both the province and the nation.
Dlamini Zuma said the economy of KZN was a vital part of the national economy, as it was the second largest contributor to South Africa’s GDP.
“The province is also a vital artery for exports and imports as it hosts the Durban and Richards Bay ports which handle almost 60% of SA’s cargo tonnage. It is also a vital source for our food and manufacturing sectors as well as our timber sector as it produces over 50% of all timber used in the country. As we all know it is also the main source for our sugar, which accounts for 0,84% of our GDP,” Dlamini Zuma said.
She said inequality was one of the greatest inhibiting factors to growth in the country.
“With regards to inequality of wealth, the top 10% wealthiest people control over 75% of the country’s wealth and they receive half of all wages.
“This poverty and inequality makes South Africa the third most violent society in the world with notably high rates of assault, rape, homicides, and other violent crimes.”