Gauteng MEC for Economic Development, Environment, Agriculture and Rural Development, Lebogang Maile’s remarks on the occasion of the launch of the Township Entrepreneur Awards (TEA), Tembisa
Around this time last year, we were preparing to wrap up what was an unprecedented process to hold direct engagements with over 50 000 entrepreneurs across 65 of our townships in this province. We were also in the final stages of our preparations for what was simply a historic and epoch defining summit of township entrepreneurs drawn from various regions of the province.
At this summit we emerged with a clear and defined strategy to pull our townships from the marginal positions they currently occupy to the centre of economic development. It is quite remarkable that it has been nearly a year since that historic gathering at Orlando Stadium.
Today we gather in Gauteng’s second biggest township to mark yet another milestone in our vision to grow and transform township economies. We gather to launch the historic Township Entrepreneur Awards – a concept that is entirely new to the South African business lexicon. I am delighted that the journey we started in July 2014, has reached this significant milestone, although there are still plenty more steps we must take.
Our wide consultations with townships businesses were an eye opener for us as government and the broader South African society. These consultations were greeted with unmatched enthusiasm by township entrepreneurs who responded to our call to chart the course for a transformed economy that affords township people equal opportunities to the spoils of our land.
In a clear demonstration of an unwavering commitment to work with government and various stakeholders to propel the township economy to new heights, township- based entrepreneurs attended the roadshows in multitudes and filled our community halls, churches and sports centres in all the townships we visited.
Through these engagements, we became acutely aware of hurdles that stand in the way of successful and enduring business culture in our townships.
We heard of the enormous difficulties township businesses face in relation to securing markets for their goods and services. We drew insight from township entrepreneurs who bemoaned the shortage of industrial land and space for conducting business as well as restrictive regulation and compliance framework. We were also made aware of the onerous requirements that township businesses have to meet in order to qualify for private sector funding.
When we took the decision embark on this particular journey; there were some who questioned our specific focus on township businesses.
Apart from the rare insight we gained from our engagements with township entrepreneurs, our history and the many ways it continues to exert a bearing on the present was an important reason motivating our decision to give special focus to townships.
In this regard, the township economy revitalisation campaign must be squarely located within this painful history, which is recognised for various heinous acts and only rarely for how the apartheid state stifled and effectively criminalised entrepreneurship amongst black people.
Apartheid imposed extensive restrictions on black people’s access to capital and economic assets. Black people were barred from engaging in various trades and own various businesses and this explains why a significant portion of the Freedom Charter makes a commitment to reverse this horrid situation.
Even worse was the fact that apartheid planning deprived townships of economic infrastructure and made the cost of doing business in these areas particularly high. Put simply, the marginal positions occupied by township businesses in the South African economy is not a product of an unfamiliar phenomenon but a reality imposed on these businesses by a history of racialised economic relations.
It is heartening to note that in the face of such adversity, townships still produced formidable business men and women whom we hold up high as models of resilience, tenacity and excellence.
These men and women built enduring businesses that today compete with established white business. They rose to defeat the drawbacks facing many black businesses at that time such as finding a suitable location to establish a business in a country that condemned blacks to townships and gave white people exclusive rights to occupy towns and cities.
These obstacles also included access to finance in a country where black people’s destiny was confined to labouring in the mines, factories, farms as well as the kitchens and gardens of white suburbia.
We are proud that these men and women rose to greatness against such adverse conditions. We are proud to be associated with such tenacious people and unyielding spirits.
Be that as it may, we are also wary of the fact that we cannot continue to recount the same handful of names when we speak about successful township businesses, no matter how inspirational these stories are.
We are awake to the reality that South Africa needs more inspirational stories, more wealth creators and more risk takers who are fiercely committed to pushing the boundaries and dismantling the walls of an untransformed and racialised economy.
Over and above this history, our focus on townships is also motivated by the fact that today townships are home to 70 – 80% of Gauteng’s 13 million people. The World Bank also estimates that the combined wealth of Gauteng townships is R100 billion, with as much as 80% of this money circulating outside townships. Our township economies are still largely consumer-driven; with almost all the products consumed being sourced from outside these areas.
What compounds the situation is that the largest numbers of unemployed people are to be found in townships. The ongoing troubles plaguing our mining industry and the decline of the manufacturing sector underscores the importance of looking at other forms of income generating activities to keep the poor afloat.
For a combination of these reasons, the Gauteng government made a commitment to work tirelessly to forge partnerships that will give township businesses a foothold in the productive sectors of the economy. We committed to using as much as 30% of government’s procurement spend to support township entrepreneurs.
We made an undertaking to amplify the voice of township entrepreneurs who want a transformed banking sector that is in tune with their special circumstances and responsive to their needs.
Through the Township Entrepreneur Awards, government is making a strong statement that we want to see more entrepreneurs who are willing to temper with lily white boardrooms and who can stand firm against tokenistic inclusion.
We are looking for businesses that are committed to changing the rules of the game and to creating a new economic reality in which township businesses are no longer condemned to the margins.
We are looking for partners who are as committed as we are to building an economic reality where black and township businesses occupy pride of place in South Africa’s economic landscape.
Through these awards we hope to inspire more township entrepreneurs to enter the fray and compete in the productive sectors of the economy. We want to reward innovation and groundbreaking ideas. We want to see more tire, glass, oil, LED lights and automotive manufacturing businesses in our townships.
We want to see more and more affluent consumers from all over the country driving into our townships to buy certain products or to get a distinct service from township businesses.
These objectives explain why we are targeting township businesses that are distinguished by innovation, creativity, knowledge about the market they serve, sound financial management and as well as the potential to grow and generate employment.
Furthermore, the prizes for these awards are designed to address the peculiar challenges facing township businesses by offering:
- Cash injections up to the value of R1 million
- All expenses paid learning trip to some of the world’s leading innovators with strong entrepreneurship culture
- Mentorship and incubation provided by established businesses across various trades and sectors as well as
- Business tools to enhance performance and output
Our wish is that these awards will awaken the many informal township businesses to the benefits of formalisation and compliance. We truly hope that the initiative will inspire township businesses to cast their nets wider, acquire bigger clients and secure higher profits.
We are aware that we cannot reach this stage for as long as township businesses are condemned to operating in backyards. We recognise that the cost of doing business in townships, especially issues pertaining to water and electricity, is a serious hurdle and have started addressing this. It is for these reasons that we will continue dedicating the necessary time and effort to ensure that the revitalisation of township economies remains top of our agenda.
The economy of this country is in the townships. The majority of consumers of everyday goods and services are in our townships. The numbers are here and so is the buying power.
Township business must grow from survivalist businesses that operate from hand to mouth to thriving enterprises that create jobs and sustain livelihoods. We want to an end to the exclusion of township entrepreneurs from the economy. We need your help to do this. We invite you to partner with us on our mission to change the rules of the game. We invite you to join us in the quest to build confidence in township goods and services. Help us to transform our economy.
Thank you.
