Young entrepreneurs reviving Khayelitsha economy

Co- owner of Rands Cape Town Mshayi Mbeki alongside co-founder of The Milk Restaurant & Champagne Bar, Siphelo Jalivane, believe in growing small businesses together. Picture: Tracey Adams / African News Agency (ANA)

Co- owner of Rands Cape Town Mshayi Mbeki alongside co-founder of The Milk Restaurant & Champagne Bar, Siphelo Jalivane, believe in growing small businesses together. Picture: Tracey Adams / African News Agency (ANA)

Published Jan 30, 2022

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Just a few years ago nightlife, restaurants and cafe society were synonymous with the Cape Town CBD. But Khayelitsha, one of the largest and fastest growing townships, is claiming its stake in the sector.

Often making headlines for its worst attributes, Khayelitsha has become known for high crime rates, mushrooming informal settlements and high unemployment.

But an economic hub in the busy township is growing, driven largely by young entrepreneurs determined to see their community thrive.

This month saw the resurrection of The Milk Restaurant & Champagne Bar. When the business was first launched in December 2018 it created a stir, only to be closed once the Covid-19 pandemic hit.

Founder Siphelo Jalivane said, “We are changing the image and vibe of the township. We’re creating a new narrative.

“Crime is a reality everywhere. So we have also invested a lot over the past few months in ensuring safety and security for those who want to experience our dining and entertainment offerings.”

The Milk Restaurant & Champagne Bar add another dimension in Cape Town's growing dining and entertainment industry. Picture: Tracey Adams/African News Agency (ANA)

However, making their dream thrive has not been without challenges.

Jalivane said: “After pouring every cent I had saved into the business, I was eager to open its doors to the public. But we were not ready on the operational side. We didn’t have sufficient equipment and some staff we hired had lied on their CVs about their capabilities. I had to sell my valuable assets including my house .”

Three months later the business suffered another setback. Jalivane said lockdown played a part, too, although it was also a “blessing in disguise”.

“It was a difficult period. I lost revenue and had to close down the business,” said Jalivane.

He had to make a loan. “One of the biggest mistakes I made was borrowing R600 000 and now having to pay back R1.8 million. But I also had to go back to the drawing board and start mapping out the possibilities of reviving the business.”

Less than a kilometre away from The Milk is the popular lounge bar called Rands Cape Town. Its owners collaborated with Jalivane to revive his popular eatery.

Mshayi Mbeki, co-owner of Rands, said: “It’s crucial that we help each other recover. It’s only through working together that we will see the township economy boom and create more jobs for our people. We believed in Jalivane’s dream and felt that our offerings complemented each other.”

Mbeki and his brother, Rands co-owner Mfundo, travelled to China in 2020 to purchase security equipment to provide safety for the patrons of surrounding businesses.

During last year’s local government elections, the GOOD Party’s Patricia de Lille and Brett Herron partied at the popular establishment. The venue has also hosted artists like AKA, Pearl Thusi, Somizi, DJ Zinhle and many others.

“The elite and the politicians have wined and dined here. We have not received any support to grow our businesses and we rely on each other for support,” Jalivane said.

But crime is an issue and a hurdle for local businesses. Back in 2020, seven people were shot and killed at a tavern. Mbeki said in addition to the CCTV cameras they installed, they also work with the Neighbourhood Watch, and hired armed personnel, bouncers and marshals to provide security.

“Then there are challenges with regulators. The list is endless. However, we look at the bigger picture. It’s crucial that we grow our businesses – we need to lead the economic recovery in the township,” Jalivane said.

bJust last month the first four-star hotel in a township, The Spade Boutique Hotel & Spa, opened its doors.

The list of businesses run by young entrepreneurs is growing and includes “chill” places like Kwa-Ace, Seek Lounge, Kefu’s Jazz Bar, Spine Road Lifestyle and Ocean Canda, the only place that offers seafood and sushi in the township.

And for the caffeine fiends, Siki’s Koffee Kulture, takes care of the growing coffee culture in the township. An investment into the local music industry is also set to take off with a platform for budding musicians having been created by Mbeki, who started his music career from his back room and has just released an album. “The brands are growing and becoming a force to be reckoned with. We have to lead the economic recovery in the township,” Jalivane said.

Sikekela Dibela, the owner of Siki's Koffee Kulture. Picture: Tracey Adams/African News Agency (ANA)

Locals make up the majority of the visitors, but there are also national visitors. The entrepreneurs have their eyes on continental and international visitors, too.

With the rooftop at The Milk Restaurant & Champagne Bar exclusively for “high spenders”, there’s no limit to what could be achieved, Jalivane said.

“We like to be innovative and set new trends.

“We want to cater for people who can run up a bill of R100 000. Some people would call us crazy. But we know it’s realistic – we are introducing a lifestyle.”

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