Gauteng township retailers to receive R100-million in support, and women are to benefit most

File photo Picture: Oupa Mokoena

File photo Picture: Oupa Mokoena

Published Aug 11, 2022

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Johannesburg - Enterprises and markets based in townships are referred to as the township economy. Township enterprises are diverse, with a high rate of informality and provide a range of goods and services to meet the needs of township communities and beyond.

Spaza shops have been part of the township business landscape for time immemorial and play a big part in the township economy. This is evidenced by the over 200 000 spaza shops countrywide.

These business activities play a vital part in the empowerment of local communities as they provide employment opportunities for individuals based in the township.

The Gauteng government under the leadership of Gauteng Premier David Makhura has taken it upon itself to grow the township retail sector.

Premier David Makhura has announced an R100 million fund that is aimed at supporting businesses in the township retail sector.

The Gauteng Township Retail Programme was launched at the Sam Ntuli Stadium in Thokoza earlier this week.

The Premier said although the provincial government is committed to supporting township enterprises to grow, those living in the townships also have to begin buying from local shops.

“We have implementing partners all around the townships so the township businesses must be organised. It (makes it) easier for us to support a group or association [of retailers] than doing it on an individual basis. When the businesses are organised, you are more powerful.

“(The community) must also buy from each other. We must spend the money that we have in the township. Buy the bread made next door - you will get a good price and you will also be helping to grow the township economy,” he said.

Makhura said women business owners will specifically be targeted for support.

“There can be no township economy without women. The women's businesses are the largest in our townships. Most of the people who are selling and involved in business in the township are women. So we must have a specific target (that says) of this R100-million, how much of that will be for women-owned businesses,” he said.

Makhura stressed that revitalising and building stronger sectors of the township economy will not be easy but reiterated his government’s commitment to ensuring that entrepreneurs are able to build sustainable businesses.

“If we want to fix the township economy, we must start with those small retail businesses and make sure they are supported by the government. (We) are already supporting some township businesses in order to help them grow. We want the people in the township – for generation after generation – to be the ones running these businesses,” he said.

The announcement of the fund comes at least 100 days since Makhura signed the Township Economy Development Act into law.

The law requires, among other interventions, provincial government departments to procure at least 40% of goods and services from township businesses where possible.

Makhura stressed the importance of ensuring that these policies are implemented to ensure businesses reap the intended benefits.

“This is the implementation of the Township Economy Act. That law must not just be a policy, it must be implemented. It must not be shelved or put away in offices it must be implemented so that we can feel the township economy (growing).

“There are many people in the township who are working hard, who don’t sleep to make sure they make proper businesses to support and feed their children. The township development act is about supporting those businesses,” he said.

Makhura announced that other sectors including township manufacturers and township real estate will also be receiving attention and the necessary support to help them thrive.

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