Gauteng on target to support township businesses - 23 April 2024

Office of the Premier 2024/04/22 - 22:00



Lerato Mailoane

Gauteng Provincial Government is on course to becoming the only government in the country to spend 35% of its budget on township businesses.

This is according to Gauteng Premier, Panyaza Lesufi.  The premier was responding to questions in the legislature on how much government has spent in support of township businesses since the adoption of Township Economic Development Act.

"In the 2019/2020 financial year government spent 21 billion in townships, in 2020/2021 this government spent 24 billion in the townships and in 2023/2024 we are en-route to ensure that at least we reach that target of spending 35% of our budget in the townships and that's making us the only single government in the entire country that has dedicated its services to support township businesses," said Lesufi.  He said this would ensure that there's compliance, there's product development and that government introduce new technologies to support small businesses so they can reclaim their status in communities.

He further outlined the support that government is giving to spaza shops owned by South Africans support and so far, 700 new stores have been refurbished and new distribution centres in strategic townships will be used as warehouses that local businesses can utilise to get bulk services.

"We have introduced the last mile delivery programme that links young people to commercial opportunities so that we can deliver goods nearer to where they are and that they don't have to leave their stalls to go and buy stock and this uber service is to ensure that they can get stock at any time any moment utilising the app that we've installed in their cell phones," he added.

In addition, all Members of the Executive Council has the following cross cutting indicators that compels them to utilise Township Economic Development Act to ensure government spend its money in townships.

The Premier said since the adoption of the act, government has established 45 special township enterprise zones where comprehensive special economic analysis is done and stock recorded.

"This will enforce that our hospitals our schools and all government businesses that are in the townships can strictly buy from this Township businesses without going through tedious Public Finance Management Act (PFMA) processes.

"These include products such as tissue papers, electric bulbs, food and many other services that are needed in our institutions and we are now in discussion with the Department of Education to conclude this part with them as well we have also established what we call the model standard bylaw to ensure that bylaws are adhered to by bylaws are not used to deny an opportunity for young business people to do business in our townships this we finalised the relevant bylaws with all local government authorities in our province," said Lesufi.  


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