Revitalisation of township economy

The Gauteng MEC for Economic Development, Lebogang Maile, and the Executive Mayor of Tshwane, Kgosientso Ramokgopa, met with the business community of Mamelodi on 13 August 2014 as part of the Township Economy Revitalisation Programme in Gauteng.

The provincial Economic Development Department launched a thirty day roadshow on township economy revitalisation in Gauteng – the first one kicked off on 21 July 2014.

During this period, the provincial government will visit 50 townships in Gauteng to listen, share ideas and communicate with communities on ways to revitalise and transform the economies of townships. This is part of the government’s new agenda to radically change the provincial economy.

“By a township economy we refer to all township activities by community-based enterprises aimed at meeting the needs of the township residents. They range from street vending, taverns, minibuses, spaza shops, burial societies, stokvels, hair salons, plumbing, panel-beating, home-based care, including basic things like cooking, shopping, child-minding, take care of the sick and the aged,” Maile said.

Ramokgopa outlined the steps that the City is taking to boost local business, but he also noted the challenges faced by local government in revitalising township economies. He said: “The problem of nyaope is a manifestation of a broader economic problem and government is tackling it head on. Mall developments, while they are welcome, are cannibalising small businesses. This is a paradox we are faced with.”

Ramokgopa further added that: “The City plans to give out title deeds to shops that have been leasing from the City for generations, provided their accounts are in good standing order. Plans are afoot to look at vacant industrial sites, rejuvenate them and avail them to small businesses. We do this because we realise that infrastructure development is key in business success.”

While the government is committed to support small businesses, it calls on people to do the following:

  • Sell things that they produce. The township economy must look beyond selling things that are made by others. There are thousands of ways to produce new quality things that meet the needs of communities. These include food products (like bread, milk, etc) and other basic necessities such as toilet paper, furniture, etc.
  • Mobilise township buying power to improve incomes and investment in productive activities. The township economy must be built on the strength of township communities – our collective buying power runs into billions of rand and includes, for example, money in burial societies, stokvels, workers’ funds (such as pensions) and social grants.
  • Organise and cooperate for the township economy. The township can only succeed when different community-based businesses, cooperatives and other businesses in the township are better organised and cooperate economically among themselves.

“After the thirty-day roadshows, we will further consult with sectors of the township economy. From the roadshows we will convene a provincial summit on the township economy with representatives from the communities and chart the way forward,” Maile said.

For more information on the township economy revitalisation roadshows, please contact the Department of Economic Development by:

E-mail: township.economy@gauteng.gov.za  
Tel: 011 355 8006 (Consumer Affairs Hotline)

Municipality Type
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