​Lerato Mailoane
Small businesses based in Gauteng townships will now have access to funding, thanks to the R300 million SA SMME Crisis Partnership Fund.
The Gauteng government formed the fund in partnership with the Industrial Development Corporation (IDC) and the SA SME Fund.  It was launched in Tembisa on Wednesday, 5 October 2022.
The partners have contributed R100-million each towards the fund. 
Among other objectives, the SA SMME Crisis Partnership Fund seeks to address barriers that for long have constrained the growth of township SMMEs and limited their participation in the mainstream economy, thereby exacerbating high levels of poverty and unemployment in townships.
It will provide loans of up to R1.5 million to qualifying enterprises and exploit the use of technology to reduce turnaround times and reach more SMMEs.
The fund is already committed to six intermediaries that will facilitate the provision of working capital and asset finance to hundreds of small businesses and entrepreneurs.
Some intermediaries are Indlu Living, which provides micro property and backyard developers in townships with an all-in-one rental management software, finance and property development solution, Profit Share Partners and Crede Capital Partners.
Through the fund, landowners like Indlu Living will fund the building of rentable backyard rooms with loans expected to be paid off from rental income. 
"This partnership broadens our access to SMMEs, particularly as we will work with fund managers who already have a pipeline of applicants in the township economy. 
"Through this partnership, we want to make it much easier for Gauteng SMMEs to access the loan funding they require to help sustain and grow their businesses," explained Gauteng Enterprise Propeller CEO Saki Zamxaka. 
CEO of the SA SME Fund, Ketso Gordhan, believes that the fund effectively leverages different skill sets and pools of capital to support entrepreneurs and help SMMEs grow. 
"The Gauteng province has proven to be a leader in developing this innovative partnership, which hopefully will be replicated in other provinces. We are proud to be an early partner in this strategic intervention to build the Gauteng economy," said Gordhan.
IDC CEO Tshokolo Nchocho emphasised the need to support the growth of SMMEs and other township-based businesses.
"Townships are a hub of entrepreneurial ingenuity yet lack of funding and support to
 township-based businesses has in a way impacted growth of township-based businesses. For us as the IDC, we see great potential in the township economy."
MEC for Economic Development Parks Tau said the fund is part of the government's deliberate approach to reignite the township economy and elevate it to respond to the current needs of society.
"For many years, township property owners have struggled to get flexible and risk-free funding to build backyard rental flats. We are working in partnership with Indlu Living to provide that assistance to property owners," Tau said.
The fund ties in with the Township Economy Development Act (TEDA), signed into law in April to create a new designation - the township enterprise zone - which allows the government to stack benefits and programmes in specific geographic areas to spur diverse, job-generating economic activity. 
TEDA provides for the promotion and development of the township economy by creating a conducive environment for trading, licensing, and principles to be adopted by municipalities in drafting and adopting by-laws that affect township based SMMEs.