DURBAN - PREMIER Sihle Zikalala has vowed to do more to improve township and rural economies. The premier was responding on Tuesday to a barrage of complaints and questions from business forums that fall under the KwaMashu Business Chamber.
Accompanied by Economic Development and Tourism MEC Ravi Pillay and newly-elected eThekwini Municipality Speaker Thabani Nyawose, Zikalala visited the township and met business forums to hear their concerns and input.
Business forums had expressed concern about the slow pace of speeding up developing and assisting small businesses in the township. One of their main issues was the red tape at Ithala Bank, accusing it of making unreasonable demands before it granted loans.
The government’s financial vehicle was “as good as dead” in KwaMashu because it had not funded a single businessman that they knew of, they said.
KwaMashu Business Chamber chairperson Sithembiso Mabanga called for a distribution centre and cold storage facility to be built.
“It’s frustrating that a township with more than 300 000 people did not have a distribution centre where businesses could easily get our stock without leaving the township.”
Mabanga said they established the chamber because they wanted to talk with one voice. “Premier, there is a market and a lot of business opportunities in our township, but we need support from our government to develop business and create work for people.
“Once people are working, the buying power will increase and the economy will improve. But we need a distribution centre and cold storage facility here so that the money circulates within the township. Our members are forced to go long distances to get their stock and that costs money which forces them to charge their customers more.”
Zikalala said his government was determined to revive the township’s economy. Projects were already under way, to be funded by Ithala. He said Ithala also had plans to revive its dilapidated building next to the police station, which would be converted to house small businesses with a reasonable rent.
He vowed to ensure the township economy was revived to meet the increasing demands of goods and services. He added that he supported the idea of a cold storage facility being built.
The premier also lashed out at business forums that were disrupting construction work and demanded a 30% stake, saying this was “criminal and it must stop”.
Sub-contracting was via a tender process where companies bid and the one which qualified was formally appointed but those forums abandoned work after receiving the funds, he said.
Regarding Ithala’s “reluctance” to fund small businesses, Zikalala said those issues would be looked into.
Daily News