Townships to get attention
THE economies of townships can not remain small forever, with the Chris Hani District Municipality (CHDM) acknowledging its responsibility to foster closer working relationships between big and small businesses.
This was said by CHDM portfolio head of integrated planning and economic development, Sibongile Mbotshane, at the revitalisation of the township economy engagement session, hosted by the Eastern Cape Development Corporation (ECDC) last week at Victoria Manor Guest House.
Small entities and big stakeholders from CHDM and other district municipalities were present.
Quality development officer of the Eastern Cape Socio Economic Consultative Council (ECSECC), Sive Kamte, said township enterprises were diverse but often “survivalist”, as 70% did not last beyond three years.
“Only a few enterprises survived after the removal of state subsidies in 1994. Dimbaza has only about three out of 128 factories still functioning, and many Butterworth factories are abandoned,” Kamte said.
“The importance of revitalisation is to overcome the persistent dichotomy between developed cities, towns and former border industry zones. We need to change townships from labour reserves, largely consumption based, into productive hubs that attract investment.
“We need to use local labour and to integrate township small, medium and micro enterprise businesses into formal value chains.”
Kamte indicated that township roadshows should be conducted to solicit input for a township economy revitalisation strategy with a call for written submissions.
Senior manager of enterprise development at ECDC, Mpumelelo Fundam, said the main purpose of the engagement session was to sharpen the focus on township revitalisation and activating businesses.
Concerns of foreign nationals owning most of the businesses in the townships were raised. Skills development of young people also needed to be a focal point.