Gauteng government reignites the economy to boost township business- 01 October 2020

Office of the Premier 2020/09/30 - 22:00



Lerato Mailoane 

Township businesses could not operate optimally during lockdown, and now that the country has moved to Lockdown level 1, Gauteng is looking at ways to revitalise the township economy by ensuring that businesses operate legally and are properly regulated in the townships.

Addressing the media during the Provincial Command Council weekly update, Gauteng Premier, David Makhura said it was important for all businesses operating in the township to have their say in the Gauteng Township Economic Development Draft Bill.

Last week, the provincial government published the Gauteng Township Economic Development Draft Bill for public comment, which seeks to ease the regulatory burden faced by township enterprises.

The draft Bill is to provide a framework for the promotion and development of the township economy and to create a conducive environment for this to happen.

"The Bill is in line with Gauteng Township Economy Revitalisation (TER) Strategy, introduced in 2014 to close the gap between the township economy and the mainstream economy. TER recognises full integration of previously excluded people from the townships and peri-urban centres into the core of the Gauteng economy," said Makhura.

Makhura said the draft bill is aimed at the following objectives:

• Formalisation to enable access to financial and non-financial support including access to markets;

• Promote and diversify through regulation participation of township-based enterprises in certain sectors;

• Use public procurement as a strategic lever to promote clustered enterprise development and enable a group of enterprise to supply certain goods and services; and

• Affirm locals to grow and contribute sustainably to the township economy.

Makhura said government was currently finalising how the Small Macro Medium Enterprises (SMME) COVID-19 Relief Fund would be distributed to SMMEs in need of the funding. The Department of Economic Development is currently finalising the legal implications of how the fund would also be used to help support township businesses.

"We can't rebuild the same economy where black, women and youth businesses would not receive opportunities," he added.

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