SME Investor Magazine Jun-Jul 2017 | Page 24

Game Changers

Township Business

The South African Government approved the
National Development Plan ( NDP ) Vision-2030 , a comprehensive plan aimed at eliminating poverty and reducing inequality in the country by 2030 . The NDP aims to create 11 million jobs by 2030 , this means that per annum , calculating from the beginning of 2015 the South African economy is supposed to create 733 000 jobs . The Gauteng province accounts for almost 30 % of total employment currently , the NDP target implies that the Gauteng economy must contribute 220 000 new jobs per annum . The projections suggest that over a 3-year horizon ( 12 quarters ), the Gauteng economy is projected to create 149 000 jobs . This means that on an annual basis , the Gauteng economy is projected to create about 50 000 new jobs .
To meet the above target , Gauteng has developed a 5 year strategic plan with township economic development as its top priority . The majority of South Africans live in townships and this makes the township economy a major contributor to the Gross Domestic Product ( GDP ). This necessitate the revitalization of and building township economies .
Revitalisation of and building township economies
Revitalise and build township economies by supporting the development of township enterprises , cooperatives and SMME ’ s that will produce goods and services that meet the needs of township residents .
That is the commitment of the government towards township economic development . We have seen major developments in our townships that we never thought of over the years that were propelled by the realization of our government that the buying power lies within the township . Everything that you may think of , you can surely find in our townships today .
Today many people are employed in their townships , by SMEs , government and corporates that have established businesses , offices and branches right in our townships . Malls and shopping centres spring up every day and big brands and franchises are being opened making more profits than those in town .
We need to realise that township businesses are changing the game in our economy and therefore we need adapt to the changes . Not so many years ago , the only businesses that was considered to be township dominant were the taxi and spazashop businesses . If you needed anything more than that , you had to go to town . But today as a township citizen , you can take the whole year without going anywhere near the town and still enjoy all the goodies that are found in town .
The township can now offer all the basic services and everything that a person need . You find malls with every shop and services that you find in town and sometimes when you are shopping you forget that you are right inside the township .
The township economy is booming and becoming one of the biggest economic driver in South Africa . The world is now recognizing the township lifestyle and want a taste of it . Every tourist won ’ t leave South Africa without visiting at least one township and having a taste of a life in a township .
Town lifestyle has become a trend and it is no longer a surprise to see all people of colors , classes and cultures in a township . South Africa has truly changed and we need embrace that . There might be challenges of service delivery , infrastructure development and over population but if as South African can stand up and take advantage of the changes that have seen to build on them .
Why South African township residents are not as successful as their foreign counterparts ? We can regard township economic development as successful only when the township residents are empowered and developed . It is a good thing to see our townships having all this good things to offer , but it is another thing when those good things offered are beneficial to mostly people that from outside that township . And again when the local township resident setup the business to offer goods and services to his local community he does not receive the support from his own people .
We can only claim to enjoy freedom when we come to a realisation that for our economy to grow , we need to have the zeal to support and help our own instead of trying to pull them down . We need to come together and form township corporations with the goal of improving and protecting our heritage . We are to use that power for the benefit of our children
Township businesses are booming and nothing can change that , but who is benefiting the most ? Let ’ s change the way think of each other and start to be more supportive to our local guys so that they can benefit from the booming economy in our township .
“ The significant participation and meaningful inclusion of the people of the township into mainstream economy of Gauteng through their own township enterprises that are supported by the government and big business will be one of the key game changers … The townships must be self-sufficient and vibrant economic centres .” Premier David Makhura , State of the Province Address ( June 2014 )