Global Overview
The Fourth Industrial Revolution has transformed industries, social behaviour, and global business operations through rapid innovation and the convergence of physical and digital worlds. Key advancements such as the Internet of Things (IoT), robotics, artificial intelligence (AI), and 3D printing have reshaped economic landscapes.
Data, often referred to as the “new oil,” powers the 4IR. According to the World Economic Forum (WEF), 4IR technologies could contribute up to $3.7 trillion annually to the global economy by 2025, driven by automation, smart systems, and digital transformation. The introduction of generative AI, like ChatGPT in November 2022, marked a major milestone, achieving 100 million users in just two months.
National Overview
South Africa has embraced the 4IR by implementing strategic policies and institutional frameworks. The Presidential Commission on 4IR developed a national roadmap to harness these technologies to address economic and social challenges. The Department of Communications and Digital Technologies (DCDT) leads these initiatives, supporting projects like the proposed Lanseria Smart City, aimed at creating tech-driven urban centres.
The country’s 4IR startup ecosystem is thriving, with innovative companies such as:
KwaZulu-Natal Overview
KwaZulu-Natal (KZN) is positioning itself as a leader in the 4IR space through targeted initiatives:
Data Centres and Business Process Outsourcing (BPO)
KZN is emerging as a data centre hub, attracting global players like:
These investments enhance the province’s long-term 4IR sustainability. Additionally, KZN’s rapidly growing BPO sector complements AI-driven technologies, particularly in natural language processing for multilingual communication.
By embracing 4IR innovations, KwaZulu-Natal is creating a future-ready economy, offering a wealth of opportunities for investors in emerging technologies, data infrastructure, and smart solutions
Global Overview
The agriculture industry has experienced significant growth, with its global market size increasing from $13,272.75 billion in 2023 to $14,356.23 billion in 2024, at a compound annual growth rate (CAGR) of 8.2%. Projections indicate further expansion to $19,286.79 billion by 2028, driven by a CAGR of 7.7%. This growth is fuelled by technological advancements such as high-yield crop varieties, global trade, population growth, and rising incomes. Emerging trends include precision farming, modern farm management software, digital marketplaces for agricultural products, and innovative water management solutions.
In 2023, global agricultural export trade amounted to $1.9 trillion, growing at an annual average rate of 8% between 2019 and 2023. However, with agricultural imports valued at $2.04 trillion, the sector faced a trade deficit of $67.7 billion. Soybeans were the top-traded commodity globally (4.8% of exports), followed by food preparations, wheat, maize, and other staples. The United States (9.1%), Brazil (7.6%), and the Netherlands (6.3%) lead agricultural exports, while China (11%) and the USA (10%) are the largest import markets. South Africa contributes 0.7% to global agricultural exports and 0.34% to imports.
South African Overview
South Africa’s farming sector underpins a vertically integrated agro-processing industry, producing staples such as maize, wheat, sugar, and sunflower oil, as well as value-added products like fruit juice, peanut butter, and canned goods. Guided by the National Development Plan 2030 and the Agriculture and Agro-Processing Master Plan 2022, South Africa holds immense potential for agriculture through:
South Africa exports over 900 agricultural products to more than 200 countries, generating $13.2 billion in 2023. The Netherlands, United Kingdom, Botswana, China, and Namibia are key markets, contributing 33.8% to export earnings. Complying with Global GAP standards and sanitary regulations, the country’s top exports comprising of maize, oranges, grapes, mandarins, apples, wine, lemons, soya beans, sugar, and wool, constitute 40% of export earnings.
KwaZulu-Natal Overview
KwaZulu-Natal (KZN) boasts 6.5 million hectares of agricultural land, with 82% dedicated to livestock production and 18% classified as arable land. Fertile soils and reliable rainfall position KZN as South Africa’s agricultural hub, contributing 26% to the national gross agricultural value added. Key subsectors include:
In 2023, KZN exported R8.6 billion worth of agricultural products, primarily to Africa (55.7%), Asia (29.2%), and Europe (10.2%). Imports totalled R7.1 billion, originating from Europe (44.1%), Oceania (19.4%), Asia (12.7%), and Africa (12.4%). The province achieved a trade surplus of R1.4 billion.
Despite this success, significant untapped potential remains. Sustainable farming practices and advanced technologies can dramatically enhance production, unlocking the province’s full agricultural potential.
Investment Opportunities in KwaZulu-Natal
KZN offers a range of opportunities to investors in agriculture and agro-processing, including:
By leveraging its abundant resources and strategic location, KwaZulu-Natal is primed for transformative agricultural growth, offering lucrative opportunities for investors.
Global Overview
The global Customer Relationship Management (CRM) and contact centre market is valued at approximately $353 billion. Of this, 70% comprises in-house operations, while 30% ($106 billion) is outsourced. North America dominates the market with a 42% share, followed by Europe at 24%. The Asia-Pacific region is a key player with a 23.5% market share, reflecting its growing importance and potential. South America (6%) and the Middle East & Africa (4.5%) contribute smaller shares, but these regions are expected to gain prominence as the industry continues to expand.
National Overview
South Africa’s services sector is the largest contributor to the national economy, accounting for 75.5% of GDP in 2022 and 83.5% of all formal sector employment outside of agriculture. Key drivers include financial services, ICT, and business process outsourcing (BPO). Government services accounted for 34.2% of the services sector’s GDP contribution, business services for 24%, and wholesale and retail trade for 16.4% (InvestSA, 2023).
The insurance sector is thriving, navigating a dynamic operational and regulatory environment while exhibiting growth and innovation. While organic value-creation remains essential, mergers and acquisitions are increasingly driving industry expansion (PWC, 2024).
KwaZulu-Natal Overview
KwaZulu-Natal (KZN) is emerging as a leading contributor to South Africa’s growing services sector. In 2023, South Africa’s BPO sector generated over $309 million in export revenue and created 19,307 jobs. KZN accounted for 39% of the 6,018 new jobs created nationally between October and December 2023, reflecting its critical role in sector growth.
KZN’s competitive edge lies in its skilled and youthful workforce, bolstered by graduates from universities in Durban, Pietermaritzburg, and other areas. These institutions produce talent suited for roles in call centres, insurance, pension funds, and banking. Additionally, the province’s ability to offer services at 60-70% of the cost in markets such as Australia and the UK continues to attract international clients.
Major Role Players in KZN
Investment Opportunities in KZN
Global Overview
The global clothing and textile sector has faced significant challenges during the economic downturn following the COVID-19 pandemic. Global GDP growth slowed to 2.6% in 2023, down from 3.0% in 2022 and 6.3% in 2021. Global merchandise trade volume declined by 4.6% in 2023, following double-digit growth in the preceding two years. Notably, global textile exports fell by 5.9% in 2023 to $319 billion, making it one of the most affected industrial sectors. This decline was driven by reduced clothing production and consumption, resulting from lower global demand.
National Overview
South Africa’s clothing and textile sector is well-established and plays a critical role in the country’s labour market. The sector includes clothing, textiles, footwear, and leather (CTFL), which are interconnected through shared operations and input materials. However, economic stagnation is characterized by GDP growth of just 0.7% in 2023, following a contraction of 1.9% in 2022, has created challenges for the sector. Household consumption expenditure declined from 2.5% to 0.7% during the same period (StatsSA GDP Report 2023).
Manufacturers in this industry face rising input costs, including freight, fuel, and wages, while grappling with declining consumer disposable income. In response, local retailers are prioritizing local manufacturing to reduce costs, shorten lead times, and adapt to evolving fashion trends. Recognizing the sector’s strategic importance and potential for job creation, the government has introduced programs to improve domestic textile products, processes, and delivery efficiencies.
KwaZulu-Natal Overview
KwaZulu-Natal (KZN) and the Western Cape are the primary hubs of South Africa’s clothing and textile industry. KZN’s industry is dominated by large manufacturers catering to the mass market, alongside numerous design firms and Cut, Make, and Trim (CMT) hubs in areas such as Newcastle, Durban Central, and Isithebe. The province also hosts several key textile manufacturers, dyers, and finishers.
The Madadeni Clothing and Textile Hub, launched in October 2023, aims to revitalize the sector, transforming it into a thriving production hub. This initiative is part of a broader economic recovery strategy designed to create sustainable jobs while pursuing the long-term vision of establishing a Clothing and Textile Industrial Hub in the Amajuba District Municipality.
In KZN, the clothing and textile industry accounts for 17% of employment in the manufacturing sector, second only to the food and beverage industry (19%). The KZN Department of Economic Development, Tourism, and Environmental Affairs (EDTEA) is working with provincial economic development agencies to ensure that industrialization drives the creation of quality, sustainable jobs in the sector.
Notable Industry Players in KwaZulu-Natal
Company Name | Description |
Glodina Towelling (Pty) Ltd | Located in Hammarsdale, Durban; employs approximately 210 people; produces towels for hospitality and daily use. |
Gelvenor Africa (Pty) Ltd | Based in Durban; employs about 250 people; manufactures technical fabrics for workwear, school uniforms, corporate wear, and performance applications. |
Prilla 2000 (Pty) Ltd | Situated in Pietermaritzburg; a cotton yarn manufacturing mill with 269 employees; supplies raw materials for knitting, towelling, and weaving across Africa. |
Beier Group (Pty) Ltd | Specializes in PPE and technical textiles for industries such as automotive, filtration, geotextiles, wound care, and more. |
(Source: Who Owns Whom Report, 2023)
Investment Opportunities in the Clothing and Textile Sector
Global Overview
The healthcare sector is experiencing rising spending and investment globally, reflecting its critical importance. However, health disparities continue to widen, posing challenges for equitable access to care. A strong correlation between scientific advancements and investment is shaping the medium- to long-term future of healthcare.
Key global trends include:
Meanwhile, broader challenges such as climate change, rising inflation, and political crises are negatively impacting healthcare systems worldwide, highlighting the need for resilient and adaptive healthcare strategies.
National Overview
South Africa’s healthcare sector encompasses a diverse range of services, including hospitals, blood banks, pathology laboratories, and emergency medical services. For the financial year ending March 2023, healthcare spending in South Africa reached approximately R547 billion, up from R529 billion in the previous fiscal year.
Although healthcare spending as a percentage of GDP has decreased, it remains favourable compared to the global average for middle-income countries. Investments are now focusing on improving accessibility, efficiency, and the integration of innovative technologies to address the nation’s healthcare needs.
KwaZulu-Natal Overview
KwaZulu-Natal’s healthcare priorities for the next five years are guided by the Provincial Health Strategy, which focuses on:
The University of KwaZulu-Natal is at the forefront of research and development, collaborating with international partners, including institutions in the USA, to develop key vaccines and medicines for anticipated virus outbreaks identified by the World Health Organization.
Investment Opportunities
Additional investment opportunities include:
Global Overview
Domestic travel is projected to grow by 3% annually, reaching 19 billion lodging nights by 2030. Similarly, international travel is expected to recover to its historical average of nine billion lodging nights annually. Travel spending is on an upward trajectory, with global traveller outlays estimated at $8.6 trillion in 2024, approximately 9% of the global GDP (Tourism Report 2024, McKinsey & Company).
According to the World Travel Organization, three significant trends are shaping the industry:
National Overview
South Africa has solidified its position as the leading travel and tourism destination in Africa. Ranked 55th out of 119 countries in the 2024 Travel and Tourism Development Index (TTDI) by the World Economic Forum, South Africa boasts the most extensive travel and tourism economy on the continent.
The TTDI assesses factors and policies promoting sustainable and resilient tourism development. In 2023, South Africa welcomed 8.5 million international visitors, including 6.4 million arrivals from Africa constituting 48.9% increase from 2022. From January to March 2024, international arrivals surged to 2.4 million, marking a 15.4% growth.
Tourism is recognized as one of South Africa’s fastest-growing economic sectors, with the National Development Plan targeting 15 million annual tourist arrivals by 2030. This ambitious goal is accompanied by collaborative efforts between the government and private sector to implement the tourism master plan and secure South Africa’s future as a top global destination.
KwaZulu-Natal Overview
KwaZulu-Natal (KZN) is positioning itself as a must-visit destination with a robust strategic plan for tourism growth. Key initiatives include:
KZN is also focused on strengthening its tourism infrastructure by increasing direct flights, simplifying tour operator licensing, and developing key tourism sites. The five-year plan prioritizes demand-driven skills development and the integration of advanced technology to improve offerings and ensure KZN’s competitiveness in the global tourism market.
Global Overview
In 2023, the global mining industry faced notable challenges. While the production of essential commodities grew, the financial performance of the top 40 mining companies was constrained by declining commodity prices and rising input costs. This resulted in a revenue drop of over 7%. These trends are projected to continue into 2024, marking the first time since 2016 that the industry will see a second consecutive year of revenue decline. Leading mining companies are under pressure to invest in both growth and transformation amidst structural and cyclical challenges, even as profit margins tighten. (Source: PwC, 2024)
National Overview
The Department of Mineral Resources and Energy (DMRE) has outlined an Exploration Strategy for the Mining Industry in South Africa, aiming to attract 5% of global mineral exploration spending at approximately USD 0.9 billion. This initiative seeks to drive new mineral discoveries, mining development, and optimized resource utilization.
Key Highlights:
(Source: InvestSA, South Africa Investment Conference 2023 Case Booklet)
KwaZulu-Natal Overview
Over the past 30 years, KwaZulu-Natal’s mining investment share has remained stagnant at 4.8%, with its GDP contribution declining from 2.9% in 1996 to 0.8% in 2023. Mining now accounts for less than 1% of the provincial economy.
Key Challenges:
Major Mining Areas:
Major Players and Investment Opportunities in KZN
District | Mining Product/Mineral Products |
Ugu District | Natal Portland Cement Simuma Plant: Cement. |
King Cetshwayo | Richards Bay Minerals (RBM): Titanium minerals, high-purity iron, zircon. |
Zululand | Coal Reserves: Significant reserves near Vryheid and anthracite reserves near Ulundi. |
Amajuba | Coal Reserves: Concentrated in Newcastle and Utrecht. Historically central to the district’s economy. |
KwaZulu-Natal offers significant opportunities for investment in coal, titanium minerals, anthracite, and aluminium production. With focused efforts to modernize infrastructure and attract investment, the province is well-positioned to leverage its mineral resources for sustainable economic growth.
Global Overview
Renewable energy has become the most cost-effective method for electricity generation worldwide. Over the past decade, renewable power capacity additions have consistently outpaced those of coal, natural gas, and oil combined. In 2023, renewables contributed over 30% to the global electricity supply, a substantial increase from 18.6% in 2000.
Significant cost reductions have driven this growth:
These trends make renewable energy an attractive and sustainable investment opportunity.
National Overview
As a signatory to the Paris Agreement, South Africa is committed to reducing greenhouse gas emissions through an aggressive transition to renewable energy.
Key National Targets:
The renewable energy market in South Africa represents a substantial investment opportunity, with a project pipeline of 22,500 MW, translating into R400 billion in private sector investments. The energy efficiency market alone is projected to reach R21 billion by 2035.
KwaZulu-Natal Overview
KwaZulu-Natal (KZN) is the second-largest contributor to South Africa’s GDP, with strategic sectors such as paper, petrochemicals, automotive, and steel industries requiring large-scale energy consumption. The province consumes approximately 6,700 MW of electricity, making a reliable, cost-effective energy supply critical for sustaining industrial growth.
As KZN transitions towards a low-carbon economy, opportunities abound in renewable energy investments at district, provincial, and industrial levels.
KwaZulu-Natal Investment Opportunities
Opportunity | Overview |
Wind Energy Potential in KZN | The 2024 South African Renewable Energy Grid Survey (SAREGS) highlighted the rapid expansion of wind energy projects, with 48 GW in development nationwide, up from 30 GW in 2023. KZN’s northern coastal region offers ideal conditions for wind energy projects due to:
Richards Bay’s heavy industrial base creates a compelling business case for wind farm development, bolstered by the province’s mature industrial and manufacturing capabilities, including localizing wind energy components such as turbine towers and transformers. |
Solar Energy Projects in KZN | KZN has seen significant investment in solar energy projects, including:
Additionally, KZN hosts Artsolar, South Africa’s only locally owned solar panel manufacturer, operational since 2010. |
Diverse Renewable Energy | Beyond wind and solar, KZN’s renewable energy sector includes:
The recycling sector is also gaining traction. Notably, Austrian company Alpla has invested R1 billion in a PET recycling facility in Ballito, which could serve as a model for similar projects across the region. |
Global Overview
The global economy has faced several challenges in recent years, including persistent inflation (though currently declining), volatile energy prices, ongoing supply chain disruptions, and the impact of regional conflicts. These challenges have collectively led to reduced demand and a decline in consumer confidence. Furthermore, unless a coordinated and sustainable global response is established, issues such as labour shortages in key industries and the increasing frequency of natural disasters will continue to exacerbate economic instability.
According to the 2024 UNIDO Report, high-tech industries, particularly the automotive sector, are experiencing significant difficulties, while some lower-tech industries, such as printing and beverages, have recorded modest growth. However, Africa and East Asia remain the only regions globally to sustain positive growth.
South Africa Overview
South Africa boasts a highly developed manufacturing sector, contributing significantly to the national economy. In 2023, the sector supported over 1.6 million jobs and contributed 13.0% to the country’s GDP.
Data from Statistics South Africa for the fourth quarter of 2023 (October–December) highlights the following key contributors to manufacturing sales:
On a global scale, South Africa remains a significant player in manufacturing. The United Nations Industrial Development Organization’s (UNIDO) Competitive Industrial Performance (CIP) Index ranked South Africa 51 out of 153 countries in 2022. This ranking underscores South Africa’s technological advancement, global impact on manufacturing, and ability to produce and export goods, solidifying its position as the most industrialized economy on the African continent.
Despite these achievements, the sector continues to navigate a dynamic environment, presenting both challenges and exciting opportunities for growth and innovation.
KwaZulu-Natal Overview
KwaZulu-Natal (KZN) is home to South Africa’s second-largest manufacturing sector, following Gauteng. The province contributes nearly one-third of the country’s manufactured exports, emphasizing its strong export-oriented focus. The diversity of the manufacturing sector plays a significant role in KZN’s economic growth, supporting approximately 20% of all jobs in the province.
Key contributors to the province’s manufacturing output include petroleum, food, and beverage production, while its agricultural sector employs over 90,000 people.
The launch of several major projects in recent years highlights KZN’s potential to drive economic growth and solidify its position as a leading manufacturing hub in South Africa.
Major Players in Key Sub-Sectors
Sub-Sector | Major Companies |
Food and Beverage | · Clover SA Ltd · Rhodes Food Group (Pty) Ltd · Kam and Mazi Trading Enterprise cc · Cape Sweeteners (Pty) Ltd · Amandla Nutrition Foods cc |
Automotive | · Toyota Motor Corporation · Bell Equipment Plant · Mahindra Assembly Plant · MAN (Truck and Bus) Assembly Plant |
Clothing and Textile | · Beier Group (Pty) Ltd · Gelvenor Africa (Pty) Ltd · Glodina Towelling (Pty) Ltd · Ninian and Lester (Pty) Ltd · Prilla 2000 (Pty) Ltd |
Chemical and Rubber | · Sappi · Blendcor (Pty) Ltd · Deojay Petroleum KZN (Pty) Ltd · GUD Holdings (Pty) Ltd · H&R South Africa (Pty) Ltd |
Investment Opportunities
With South Africa’s growing population and KwaZulu-Natal as the second-largest province by population size, the demand for goods and services continues to rise. KZN offers competitive labour costs and world-class infrastructure, making it an attractive destination for investment.
Key opportunities within the manufacturing sector include:
