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Gauteng Township Economy Revitalization Summit

October 8, 2014

Gauteng Premier David Makhura revealed a seven-pillar strategy for economic development in Gauteng townships:

1. Appropriate legal and regulatory framework

“Meloa e ngata-ngata… e bofa batho ba rona matsoho.” – David Makhura

Mr Makhura spoke about reducing red tape and the many binding regulations relating to running a business. He spoke out about Metro Police harassing and criminalising economic activity in the province along with other government department who seem to treat black traders and business people with contempt.

2. Promote productive activities

Township businesses must not only be retailers of goods that have been produced elsewhere. The building of production capacity in townships will be supported.

3. Township hubs

As with the new SMME Incubation Hub in Diepsloot, there will be cluster development hubs in all the townships in the province. This will, among other things, serve to provide places for production and for doing business. Mr Makhura gave examples such as people building furniture and welding in their front yards, making a noise for students who are studying in the house as well as not meeting safety requirements. These hubs will serve to alleviate these problems. Dr Shima Nokaneng the group executive in macro business intelligence and planning at the Gauteng Growth and Development Agency (GGDA). This agency is running with the creation of industrial development zones in the province, following a new strategy from having these zones at the ports.

4. Skills improvement to fast-track development

Government has taken it upon itself to work on improving the business skills in the township.

5. Financing and Investment in the township

This will include the creation of a township development bank through GEP to benefit township entrepreneurs as well as a bank for co-operatives.

6. Access to markets and procurement

A significant proportion of Gauteng government procurement budget will go to township businesses. This means that government department will have to follow a quota system and source goods and services from the townships of the province.

7. Promote new industries in the townships

e.g. mineral beneficiation, ICT sector, alternative energy solutions and indigenous knowledge systems

Mr Makhura and Deputy President, Mr Ramaphosa gave a lot of emphasis on innovation in business. Entrepreneurs are challenged to think outside of hair salons, car washes and restaurants for business. They are to think bigger and plan for expansion.

Mr Makhura and Mr Ramaphosa made it clear that the initiatives to improve the township economy are aimed at growing the economy of the country which is in the doldrums at the moment. They highlighted that the township economy strategies driven by policy frameworks in the National Development Plan, the New Growth Path, the Infrastructure Development Plan, the Revitalisation of Public Transport Plan.

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2 Comments
  1. kamogelo permalink

    Its a brilliant initiative I’m saying “big ups” to the economic development team. As an entrepreneur I’m with you all the way. Let’s build our townships!!.

    Like

  2. As the admin of this site is working, no question very shortly it will be
    renowned, due to its feature contents.

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