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Growth in KZN reflected in business

Growth in KZN reflected in business

Date: 2013-11-08
Despite a country-wide increase in unemployment and rising inflation, the KwaZulu-Natal economy grew 5.1% year on year, 0.8% month-on-month and 2.5% quarter-on-quarter. The overall growth index was also up 14.6% from three years ago, according to statistics reviewed by KPMG for the province.

Farouk Karreem, managing director of KPMG in KZN, says that particularly pleasing is the growth in manufacturing, which is up by 3.7% on the index making it the best performing of all sectors year on year.

The finance, real estate and business services index of KwaZulu-Natal grew by 3.6% year-on-year, despite some components such as advertising, not doing very well. However, the increase in civil debt cases, which helped drive up the stress index, meant more work for lawyers and helped the finance, real estate and business services index. 

Instalment sales and insurance and asset management also grew. The index and the whole financial sector closely follows events on the JSE and the recent record highs on the All-Share Index boosted the finance, real estate and business services indices in all provinces.

Karreem says that overall, this is good news for business and has been reflected closer to home in the growth of KPMG's local operation.

The regional office, which employs 219 staff including 12 partners, has more than doubled its revenue, staffing and client base over the past 6 years with a 20% compound growth per year. The advisory division, in particular, has shown stellar performance with 5 associate directors appointed in the team this month.

Ugen Moodley, newly appointed head of the division, says that the demand from business today requires a combination of specialisation and diversity.

Commenting on the financial profession and where its heading he adds that contemporary business requires more than a "rethreaded auditing service". 

"We believe in the concept of specialisation and diversity. We employ people who have experience and expertise in specific industries such as mining, petroleum and sugar." The team also comprises engineers, a medical doctor and lawyers amongst other specialists.

"When we need resources that we don't have in-house, we can easily and seamlessly draw on KPMG's international pool of talent. For example when we met a KZN municipal manager recently, we brought along an ex-municipal manager form Canada, someone who has successfully run a big city."

I think it's the way business is going, and certainly the profession", he adds.