Cape Times

Business-in-a-box mall concept gets innovators started

- DR WALLACE AMOS MGOQI Dr Wallace Amos Mgoqi is the chairperso­n of AYO Technologi­es Solutions but is writing in his personal capacity.

THE GROWTH and mushroomin­g of shopping malls all over the country is a good indicator of economic developmen­t – on the surface.

But looking closer and deeper at it you begin to see the ugly face or side of capital – the avarice or greed of capital for gain, from the most dire situations.

The system is organised, as I learnt on one trip when travelling on SAA with someone serving on the SA Board of Shopping Malls, as well as on the World Council of Shopping Malls.

He was boasting, among others, that these shopping malls were now a familiar sight, not just in former white suburbs but also in townships such as Alexandra. He did not mention, though, that these shopping malls are parachuted into these areas because of the size of the population, but that locals are merely consumers without a stake in the investment.

He further boasted that their premiere investor was the Public Investment Corporatio­n (PIC). This was around the time that the PIC was under fire from trade unions on its investment policy.

Without dictating where the PIC may or may not invest, there is a need to look at alternativ­e avenues for investment by public institutio­ns such as PIC, as well as by private sector institutio­ns, especially targeting areas of the economical­ly disadvanta­ged.

In Philippi, Cape Town, on the corner of Eisleben and Govan Mbeki roads, a well-known entreprene­ur and philanthro­pist, the founder of the Bertha Foundation, started a creative and innovative platform for small, micro and medium enterprise­s, together with the Business Place, the Philippi Village and the Industrial Developmen­t Corporatio­n.

He secured containers that get converted into lockable business spaces of varying sizes. These are stacked on top of each other in a semi-circle, with those on the ground rented at R1 500 a month, for retailing products, and those on top rented at R1 200 a month for retailing services, with staircases and a platform to walk on along the length of the containers.

The environmen­t is paved with brick and has toilet and sanitation facilities, with security personnel at the gates for the safety and security of both the traders and the customers.

The model is an alternativ­e to the big malls – a mall for poor people in a sense, a place for local entreprene­urs such as women who sew and make dresses and other household items, plus others who retail services such as internet cafés or herbal medicines. One woman started by renting a single container, but in time she rented a second one to retail the goods she produced from the first container.

This helps entreprene­urs not to worry about getting into debt – just how to get started in business with little capital outlay.

The Philippi Village Container office serves as a back office or administra­tion for the local entreprene­urs to get down to business.

This innovative approach calls for municipali­ties, as the coal-face of service delivery, as well as local businesses, developmen­t finance institutio­ns such as the Industrial Developmen­t Corporatio­n and the PIC to invest in infrastruc­ture, especially in the metropolit­an areas where large numbers of people can be lifted out of poverty, using their own bootstraps.

Rural towns, too, are to be included as this can be a way of revitalisi­ng the decaying towns and the surroundin­g villages. The model is a powerful tool that can be replicated throughout the country. It can go a long way towards contributi­ng to the social security networks, especially for women.

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