Ilembe District

Socio-economic Profile

2009Economic Analysis Unit

1

KwaZulu-Natal Provincial Treasury

1. Introduction

ILembe district lies on the east coast of KwaZulu-Natal between the eThekwini Metro in

the south and the Tugela River mouth in the north. At 3 260 km2, this is the smallest of

the 10 provincial district municipalities. It consists of four local municipalities, namely,

Mandeni, kwaDukuza, Ndwedwe and Maphumulo. Whilst iLembe is bordered by

economic powerhouses to the north and south, the area is characterised by high levels of

unemployment and poverty. Income levels are generally low with 27 percent of all

households earning no income.

The current global economic downturn also presents new economic and administrative

challenges over and above the historical challenges municipalities are facing. It is against

this background that the consideration of socio-economic factors by policy makers is

even more essential for fully understanding most resource management issues and for

making sound resource management decisions.

Well designed socio-economic profile can provide vital information that policy makers

need to allocate funds and improve the delivery of services. Service delivery has

considerable influence on the quality of life. Hence the main purpose of this report is to

provide an analysis of the recent socio-economic outlook of the iLembe district

municipality. Apart from providing basis for rational decision making, this report can

also assist the policy makers in effective and efficient budget allocation.

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2. Demographic Profiles

The KwaZulu-Natal Province has both, a growing and maturing population, presenting

opportunities and challenges to the province. According to Statistics South Africa mid-

year estimates (2008), the KwaZulu Natal population was estimated at an average size of

10, 1 million people. Out of which 51.5 percent were female. The iLembe District

municipality contributed 6 percent to the provincial population with a total estimated on

average at 588,897 living in 149,456 households. The females accounted for 52.1 percent

of the district total population and 5.6 percent to the KZN female population (Figure 2.1).

Interestingly, on average there were more females in ages between 35 and 75 years

(Figure 2.2). This means that females live longer than males.

Figure 2.1: Total Population by DMs, average 2002-2008

Source: Global Insight, 2009

Figure 2.2 shows the distribution of the population in iLembe by gender and age. The

largest proportion of the population in iLembe was the age group 15-64 years (59.5

percent) followed by age group 0-14 years (36,2 percent). The elderly population made

3

669,256

947,691

608,408 578,450 469,705

748,771

574,143

961,168

588,897

375,185

3,142,378

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Ugu 6.9

Umgungundlovu, 9.8

Uthukela 6%Umzinyathi

6%

Amajuba 5%

Zululand 8%

Umkhanyakude 6%

uThungulu 10%

iLembe 6%

Sisonke 4%

eThekwini, 32.6

Proporti ons to KZN

the smallest portion of the total population. The dependency ratio of iLembe district was

estimated on average at 71.7 percent, above provincial average (64.2 percent). This

means that more people in iLembe are dependent on the people of working age (15-64)

This poses immense developmental challenges in relation to future education, health,

recreation and other social issues, particularly if the impact of HIV/AIDS is added to the

equation. According to Global Insight (2009), 70, 946 of the total population were

infected by HIV/AIDS in 2008 in iLembe district. This means that out of 149,456

households, 47.5 percent were affected by HIV/AIDS.

Figure 2.2: ILembe population by gender and age, average 2002-2008

Source: Global Insight, 2009

4

34,455

35,277

34,812

33,543

27,415

21,392

18,535

13,611

10,278

8,077

8,269

6,817

6,138

3,999

2,750

3,123

31,574

32,640

33,672

32,261

28,193

20,607

17,579

16,097

14,768

12,801

13,145

11,318

8,490

6,732

5,278

6,977

40,000 30,000 20,000 10,000 0 10,000 20,000 30,000 40,000

00-04

05-09

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75+

Female Male

3. Grant Beneficiaries in KZN and iLembe District Municipality, 2008 & 2009

The total number of grant beneficiaries in KZN increased by 7.9 percent from 4, 4

million in August 2008 to 4, 7 million in August 2009. Similarly, the total grants

beneficiaries in iLembe increased by 7.0 percent from 270,189 in august 2008 to 289,111

in august 2009 (Figure 3.1).

Figure 3.1: Grant Beneficiaries in KZN and iLembe district between 2008 & 2009

Source: KZN SASSA

The largest beneficiaries come from child support grant and old age grant. This is

indicative of a society that is highly dependent on taxes from the working age population.

Figure 3.2 shows the beneficiaries growth per grant type year on year. It reveals that the

fastest growth grant was the grant in aid ( GIA) in all the pay points in iLembe except,

Mandini where care dependency grant was the fastest.

5

0.00

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

3,000,000.00

3,500,000.00

4,000,000.00

4,500,000.00

5,000,000.00

KZN grant beneficiaries iLembe grant beneficiaries

4,427,528.00

270,189.00

4,778,979.00

289,111.00

2008 2009

Figure 3.2: ILembe Beneficiaries growth per grant type y-o-y (Aug 08 to Aug 09)

Source: KZN SASSA

6

-60.00

-40.00

-20.00

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

Old Age Disability FCG CDG Maint GIA CSG © Foster © Care © CSG

STANGER MAPUMULO NDWEDWE MANDINI

4. Economic Outlook

4.1 Gross domestic product per municipality (GDP-M)

Between 2002 and 2008, the GDPR for KwaZulu-Natal was estimated at an annual average of

R184,8bn. There was significant growth of 29.9 percent from R162bn in 2002 to R210,4bn in

2007. Ilembe was the fifth largest contributor to the provincial GDPR at an annual average of

3.36 percent, after eThekwini (64.85 percent), Uthungulu (9.25 percent), uMgungundlovu(8.43),

Ugu (3.69 percent) and Amajuba(3.52 percent. The least contributor was Umzinyathi at 0.78

percent (Figure 4.1).

Figure 4.1: Districts contribution to KwaZulu-Natal GDPR, average 2002-2008

Source: Global Insight, 2009

Figure 4.2 shows iLembe’s GDP-M by economic sector between 2002 and 2008. During this

period the economy of the district grew by an annual average of 5.8 percent. Manufacturing,

Agriculture and Community Services sectors were the main economic drivers in this district.

These three sectors contributed respective annual averages of 35.5 percent, 16.8 percent and 16.5

percent to the district’s GDPM between 2002 and 2008. However, construction was the fastest

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eThekwini, 64.85

Uthungulu, 9.25

uMgungundlovu, 8.43

iLembe, 3.36

Umkhanyakude, 1.06

Zululand, 1.50

Amajuba, 3.52

Umzinyathi, 0.78

Uthukela, 2.46

Ugu, 3.69

Sisonke, 1.09

growing sector at an annual average of 9.7 percent. Mining was the least growing sector at –0.8

percent.

Figure 4.2: ILembe GDP-M by sectors: 2002-2008

Source: Global Insight, 2009

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Agriculture

Mining

Manufacturing

Electricity

Construction

Trade

Transport

Finance

Community services

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%

Contribution to GDP-M

GDP

-M g

row

th

5. Unemployment

5.1 Unemployment by district

Throughout the period, formal employment played the most significant role in the province,

ranging between 60 percent and 80 percent of districts’ total employment (Figure 5.1). ILembe’s

contribution in this regard was among the relatively lower levels at 68.2 percent, lower even than

the provincial average.

The employment in the district was dominated by the Agriculture, Manufacturing and

Community Services sectors (Figure 5.4).

Figure 5.1: Total employment by district, average 2002-2008

Source: Global Insight, 2009

Average unemployment rate (official definition) of women between 2002 and 2007 was

27.5% while the province’s average unemployment rate of women during the same

period was 28.2%.

9

230,863

98,538

-

50,000

100,000

150,000

200,000

250,000

DC21

: Ugu

DC22

:uM

gung

undl

ovu

DC23

: Uth

ukel

a

DC24

: Um

zinya

thi

DC25

: Am

ajub

a

DC26

: Zul

ulan

d

DC27

:Um

khan

yaku

de

DC28

: Uth

ungu

lu

DC29

: iLe

mbe

DC43

: Siso

nke

eThekwini 1,117,578

Figure 5.2: Women unemployment rate for both iLembe and KZN, between 2002 and 2007

Source: Global Insight, 2009

5.2 Employment by economic sector

Employment opportunities available in Ilembe varied from sector to sector. Agriculture (22

percent), Manufacturing (22 percent), and Trade (19 percent) had the highest number of

employees. Mining and Electricity sectors employed the least number of people (0 percent)

(Figure 5.4).

Figure 5.4: ILembe total employment by economic sector (%), average 2002-2008

Source: Global Insight, 2009

6 Development

10

16,816 22%

1100%

17,16722%

180, 0%

5,5437%

14,38219%

3,0344%

4,1045%

10,41214%

5,1527%

Agriculture Mining Manufacturing Electricity Construction Trade Transport Finance Community services Households

Figure 6.1 shows that the proportion of people living in poverty in this district is significantly

high, but has been slowly decreasing since 2005. Ndwedwe and Maphumulo local municipalities

had the highest poverty rates in the district at 99.1 percent and 96.7 percent respectively on

average between 2002 and 2008. Mandeni and KwaDukuza had lower poverty rates of 53.3

percent and 30.4 percent respectively.

Figure 6.1: Urbanisation rate, poverty rate, HDI and Gini coefficient in iLembe, 2002-2008

Source: Global Insight, 2009

The high prevalence of poverty in this district has undoubtedly contributed to the stagnant HDI in

the district. This indicator has barely improved from 0.46 in 2006 to 0.45 in 2007 and 2008.

The Gini coefficient, which measures the income gap between households, has been fairly stable

at an average of 0.59 showing very little variance over the 7 year period under review. As salt in

a wound, the increasing year-on-year Gini coefficient says that the gap has actually been growing

wider.

The Ilembe district is still predominantly rural, with an average urbanization rate of only 25

percent between 2002 and 2008. Looking at the above-mentioned indicators one could conclude

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that this district is in dire need of government initiatives to attempt to pull it out of its poverty-

stricken state.

Figure 6.2: HIV prevalence rates for iLembe and KZN, 2002-2008

Source: Global Insight, 2009

The HIV prevalence rates in the Ilembe district are more or less on par with those of KwaZulu-

Natal (Figure 6.2). It is comforting to see that the prevalence rates in Ilembe are now below the

provincial average, whereas they were higher than the provincial average in 2002. This indicates

that the government initiatives particularly by the Department of Health are succeeding in

encouraging safe sex practices among the people of this district.

Figure 6.3 is an illustration of the levels of schooling of the Ilembe population. When considering

the segment of the population which is15 year of age and above, the largest segment (23.7

percent) has schooling up to grade 5-7.

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Figure 6.3: Levels of literacy in iLembe and KZN, 2002-2008

Source: Global Insight, 2009

The second largest segment (19.6 percent) has no schooling whatsoever, 16.2 percent has

completed metric, and only 0.3 percent has completed a postgraduate degree.

7. Income and Expenditure

The average disposable income of the district between 2002 and 2008 is 4.4% of the

province. The income categories where people of the district were mostly falling in, was

the category between R 6000 to R54 000 per annum of which most of the people earn

between R18 000 - R30 000 per annum. The average rate of increase in income between

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0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2002 2003 2004 2005 2006 2007 2008

80,112 76,498 73,499 69,919 65,965 61,670 57,990

10,382 10,447 10,041 9,667 9,698 9,779 9,928

56,452 55,278 53,65551,625

50,09949,208 47,818

82,389 83,94583,583

83,80184,503

84,37184,183

53,310 55,316 58,817 62,277 65,683 70,493 74,556

6,269 5,467 5,162 5,163 4,375 4,161 3,977

48,287 51,849 55,333 58,357 60,732 61,979 63,858

7,813 7,940 8,078 8,719 9,762 10,426 11,1102,736 2,897 2,977 3,124 3,283 3,473 3,635961 969 1,015 1,041 1,032 1,125 1,139

No schooling Grade 0-2 Grade 3-6 Grade 7-9 Grade 10-11 Less than matric & certif/dip Matric only Matric & certificate / diploma Matric & Bachelors degree Matric & Postgrad degree

2002 and 2008 was estimated at 1.1%. Income increase was below the average inflation

rate of the province which was 6.8% during the same period (2002 – 2008). Majority of

iLembe district people earn between R1 500 - R2 500 per month. Figure 7.1 shows the

relationship between the household income and household consumption expenditure

between 2002 and 2008. It reveals that household income for the district declined faster

than the provincial household income. This was followed by a drastically decline in

consumption expenditure.

Figure 7.1: Household income and Household expenditure, 2002-2008

Source: Global Insight, 2009

Income distribution within the municipality was more skewed than the district average

(Figure 7.2).

14

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

2002 2003 2004 2005 2006 2007 2008

KZN HH disposable income growth iLembe HH disposable income growth

KZN HH consumption expenditure growth iLembe HH consumption expenditure growth

Figure 7.2: Income distribution, average 2002-2008

Source: Global Insight, 2009

8. Land cover and use

In 2006, KwaZulu-Natal’s land size was estimated at 93,378 km2; approximately 8.0 percent of

the South African land. iLembe’s share of the KwaZulu-Natal soil was only about 4.0 percent.

However, good news is that the district had a satisfactorily large portion of its land used for

permanent or temporary cultivation (nearly 50.0 percent), with the permanently cultivated area

actually leading the other uses (Figure 8.1). This is encouraging and agriculture in this district

should be continuously supported.

15

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

KZN iLembe

equality line

Figure 8.1: iLembe land use, 2008

Source: Global Insight, 2009

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Cultivated temporary, 16.1%

Unimproved grassland, 6.9%

Thicket & bushland (etc), 28.8%

Cultivated permanent, 30.6%

Forest and Woodland, 0.5%

Forest plantations, 1.0%

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