Crumbling infrastructure, electrical instability and crime are steering some businesses sectors away from investing in Ilembe.
This is according to a bi-annual business confidence report compiled by the Ilembe Chamber of Business in partnership with Enterprise Ilembe to measure the state of business in the district each quarter.
The latest survey, completed in January, shows that tourism – one of the district’s most valuable assets – took a hard knock with investor confidence plummeting.
Feedback from businesses suggested that the North Coast is seen as unsafe and unstable.
“Ongoing concerns are about the management of public spaces, especially beach nodes, facilities such as toilets and disregard for municipal bylaws and associated anti-social behaviour,” the survey states.
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The manufacturing sector also continues to suffer due to protests, industrial unrest and the reintroduction of load-shedding.
However, Chamber CEO Cobus Oelofse said business confidence has shown a slight increase from the record low levels recorded in the previous two half-year periods.
“Although the overall business confidence improved by nine points, it still remains in the negative territory of 43.7 index points which is below the 50 base point, despite the positive adjustments.”
Oelofse said that surprisingly, the transport, warehousing, and storage business sector featured as most confident this time around, suggesting positive growth.
“Agriculture, forestry and hunting remain the second most confident sectors along with construction, property development and property sales. Tourism, catering, accommodation, and property management remaining third in the ranking.”
Despite a slight increase from the last survey, the manufacturing and assembly sector slipped to sixth position after having been top only a year ago.
“We need to use the survey to help us find a way forward.
“We need to acknowledge that businesses cannot be seen as accountable to all levels of community leadership.
“The importance of business growth, law enforcement, and engagement between municipalities and stakeholders need to not be underestimated,” said Oelofse.
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