Beyond Gauteng and the Cape: KZN builds case for industrial investment

KwaZulu-Natal is strengthening its case as a destination for industrial investment as manufacturers, logistics operators and property investors look beyond the country’s traditional economic centres for opportunities to expand.

The province ranked third in South Africa for industrial growth potential , behind Gauteng and the Western Cape, according to the industrial growth index compiled by Clearview Fencing. More importantly, the ranking points to the depth of an industrial economy that combines an established manufacturing base with a growing pipeline of commercial and logistics development.

This comes as investor interest in industrial property gains momentum.

According to the South African Property Owners Association’s (Sapoa’s) “Global Trends” report, retail still accounts for the largest share of investment activity, but industrial and alternative property sectors are attracting increased investor interest, signalling a more diversified property investment landscape.

The province is already seeing investment in the industrial infrastructure needed to support manufacturing, logistics and distribution.

Growthpoint , the country’s largest commercial property owner, broke ground in February on Tecoma Park, a R392m logistics and industrial park in Cornubia Town. Due for completion in 2027, the development will provide 36,830m² of industrial and warehousing space across eight flexible units.

The project adds capacity to a province where manufacturing and logistics are already important parts of the economy, while reflecting demand for space from businesses that need to move, store and produce goods.

KwaZulu-Natal combines substantial manufacturing output with a large manufacturing workforce, reinforcing its reputation as a major centre for industrial activity and investment.

KwaZulu-Natal generated R183.3bn in manufacturing GDP in 2024, employing more than 200,000 people in the sector. More than 431,000m² of nonresidential buildings were completed during the year, suggesting that the industrial economy is being accompanied by continued investment in the physical infrastructure businesses need to operate.

KwaZulu-Natal’s position becomes clearer when compared with the Western Cape.

The Western Cape ranked second on the index, despite having a smaller manufacturing economy. The province generated R150.9bn in manufacturing GDP in 2024, but its industrial performance was boosted by stronger manufacturing employment relative to its population and higher nonresidential development.

Gauteng remains South Africa’s dominant industrial economy, but KwaZulu-Natal is carving out its own position as a major manufacturing and logistics hub, underpinned by an established production base, a large workforce and growing commercial infrastructure.

“KwaZulu-Natal combines substantial manufacturing output with a large manufacturing workforce, reinforcing its reputation as a major centre for industrial activity and investment,” the report says.

The implication for investors is that industrial growth is increasingly about the ecosystem around manufacturing, rather than manufacturing output alone.