lights. With the aim of replacing 200 traffic lights with LEDs per annum, the completion of this project can potentially reduce emissions by 12 000 tCO2e per annum (Mercer, 2006).
If the local authority sector meets the national energy efficiency and renewable energy targets, and continues them into the future, the sector can potentially reduce its emissions by 33% of projected emissions. This can be achieved by a combination of planning, implementation, capacity building, carbon financing and the introduction of energy audits and standards for municipal buildings (Mercer, 2008).
sector in terms of its contribution to eThekwini‘s GDP, being responsible for 25%. This is followed by the financial sector (21%) at and thereafter the wholesale and retail trade sector (17%), as shown in Figure 3.7.
Figure 3.7: GDP for eThekwini by sector Source: Economic Development Unit (2006)
Whilst the manufacturing sector is the largest sector in terms of GDP contribution, it is not the fastest growing sector. The transport and communication sector is the fastest growing sector, which grew at an annual average of 6.25% per annum from 2001-2005. This is followed by the finance and real estate sector and the wholesale and retail trade sector, both of which grew at 4.5% per annum. In comparison to this, growth in the manufacturing sector was only at 2.75% per annum (Economic Development Unit, 2006).
The manufacturing sector is the largest economic contributor and also emits the largest quantity of GHG emissions (Economic Development Unit, 2007). As such, it is important that this sector is broken down into subsectors, so that each economic contribution within this sector is understood. The four main manufacturing activities that account for over 60% of the total manufacturing sector are:
Petroleum and chemical products,
Food beverages and tobacco,
Transport equipment (including automotives), and
Metals and related products.
Other activities within this sector include:
Wood and paper products,
Radio, TV, instruments, watches and clocks industry,
Other non-metal mineral products industry,
Electrical machinery and apparatus,
Textiles, clothing and leather goods,
Furniture and other manufacturing, and
Metals, metal products, machinery and equipment.
Figure 3.8 Trends in the GDP of manufacturing subsectors Source: Economic Development Unit (2007)
The petroleum and chemical products industry is the largest in the manufacturing sector (Fig. 3.8). It contributes R5.8 billion to the economy and comprises 23% of the manufacturing sector. Whilst it is an economically important subsector, it is not a growing part of the economy, with a growth rate of 0.2%
(Economic Development Unit, 2007). The two main contributors to this sector are the oil refineries, Engen and Sapref (Economic Development Unit, 2007), which consume large quantities of energy in their refining process (Antoni, 2007 and Mercer, 2006).
The food, beverages and tobacco industry is the second largest subsector in the manufacturing sector (Fig.
3.8). It makes up 15.8% of the sector, contributes R3.8 billion to city‘s GDP and grew at an average of 2% from 2001-2005 (Economic Development Unit, 2007). The process that requires the most energy inputs in this sector is the sugar cane industry during the conversion of sugar cane to sugar (Antoni, 2007).
Transport equipment is also a growing subsector in the Durban area, as shown in Figure 3.8, which shows that the industry has been growing since 1995. It consists mainly of the Toyota Automobile Association and is responsible for approximately R3 billion of the city‘s GDP, with a growth rate of 3.7% from 2001- 2005 (Economic Development Unit, 2007). The largest source of emissions in this sector is at the Toyota Manufacturing Plant in Prospecton. This plant is believed to be the most technologically advanced Toyota
Plant in the world apart from Japan and has the potential output of 220 000 cars per annum (South Africa Information (SA info), 2008).
The paper and pulp industry includes paper production, printing and publishing. It is contributes R2.6 billion of the manufacturing sector but is stagnating in growth with a growth rate of 0.9% from 2001- 2005. This industry contributes 10% to the national paper and pulp sector. The main industry in this sector is the Mondi Paper Mill in Merebank, which is a subsidiary of Anglo-American (Economic Development Unit, 2007).
3.4.1 Future economic development in Durban
The Durban economy is a vibrant economy and is the hub of many large and small scale developments.
The Economic Development Strategy (Economic Development Unit, 2008) set a goal to achieve a GDP growth rate of 1% above the AsgiSA national growth target, which set a target of a 4.5% average growth rate from 2005-2009 and a 6% growth rate from 2010-2014 (Mlambo-Ngcuka, 2006). According to the IDP 2008/2009 (EM, 2008), sectors that will be targeted to stimulate growth, are those that create employment and promote economic growth. Sectors that focus on export related manufacturing industries will also be targeted. These sectors are the:
Automotive sector,
Information and communication technologies (ICT), tourism,
Agriculture and agri-processing, chemicals,
Creative industries (crafts, film, TV and music),
Clothing and textiles,
Wood, pulp and paper, and
Maritime sector.
The economic development and GDP growth in the city will inevitably result in an increased demand for energy sources, resulting in a higher GHG emission output. However, according to the Economic Development Strategy (Economic Development Unit, 2008), it is projected that 60% of growth in the future will be in service sectors. This will result in a structural shift in the economy, which in turn will impact on future GHG emissions. The key development nodes are the Port of Durban Harbour Expansion Project, the Dube Tradeport and King Shaka International Airport, River Horse Valley Estate, the Point Waterfront Development and the Moses Mabhida Stadium (Economic Development Unit, 2007).