Gauteng supports township entrepreneurs
The province has committed to boosting business and addressing unemployment
Township entrepreneurs and enterprises across Gauteng are thriving, thanks to the Gauteng Provincial Government’s (GPG) various efforts, including the implementation of the Township Economy Revitalisation Strategy.
Over R2-billion has been spent by the GPG in procuring goods and services from township enterprises. These enterprises vary from manufacturing, tourism ventures, ICT, Transportation, Retail, Finance and automotive.
The township strategy has indeed become a game changer.
In Soweto, two entrepreneurs, Ndumiso Madlala and Joseph Schnid, received funding from the Industrial Development Corporation and started the Soweto Brewing Company in 2012. The aim of the venture was to bring the success of local brewing into a township environment and create a world-class beer that is truly Sowetan.
Today, the brewing company employs 35 full-time staff.
“The company started in 2012 and has been an absolute pleasure. We have since won the Township Economy Award and have benefited from government support. We are finalising a merger and acquisition with Heineken and will be expanding the business into other provinces,” said Schnid.
Another successful venture is the Teen Tee, a cereal supplier to day care centres in Soweto. The company hopes to reach 5 000 day care centres by end of June.
“We recently received a loan of R58 000 from the Gauteng Enterprise Propeller, which has helped us tremendously. We supply oats to day care centres in Soweto, but our ambition is to also supply cereal around Gauteng and countrywide,” said Thapama Kgori, founder of Teen Tee.
Another township enterprise which has benefited from partnerships with the provincial government is the Soweto Outdoor company, which offers tours of Soweto. The company specialises in adventure tourism and leases quad bike tours through the streets of the sprawling historic township.
In Orange Farm, businessman and owner of Nambitha Nutritional Products Sipho Mzimba manufactures nutritional products in the form of soy drinks and supplies most of the local stores in Orange Farm and surrounding areas. In 2016, the entity has won the Gauteng Enterprise Propeller SMME Awards and received prize money which was used to purchase equipment.
Some of the beneficiaries of the Township Revitalisation Strategy programme include;
• Nthabiseng Likotsi, who together with others formed a cooperative bank (YWBN) to provide financial services to its 245 members in the construction sector.
• Thokozani Sikhwinyane from Ekurhuleni, who, together with a group of young entrepreneurs founded Imbali Paints. The company manufactures lead-free paint for residential and commercial use.
• Boitumelo Rampeng, who manages the Garankuwa Ecofurniture co-operative supported by the Department of Environmental Affairs and the City of Tshwane. Her company manufactures school desks and other furniture using invasive alien plants.
• Eaglet Tsebe and Phindile Masuku of Kgora community bakery in Soshanguve, which bakes and supplies fresh bread to residents and local spaza shops.
• Tshepo Rampatla of Reitiretse Car Wash operates in Mamelodi and services the Tshwane Metro Police fleet.
• Duncan Motsoahae runs a plastic manufacturing company in Johannesburg.
• The A Re Apareng co-operative and the Rainbow Water and Projects in Sedibeng also got support from the programme.
The GPG has firmly placed township economy revitalisation on the national agenda to drive radical economic transformation.
According to the office of premier David Makhura, in the first full year of the implementation of the strategy, the provincial government spent R1.8billion procuring goods and services from township enterprises.
Municipalities spent R1.6billion on township enterprises.
The 12% target set for the 201516 financial year has been reached and the provincial government is on course to spending at least 30% of its procurement budget on township enterprises by 2019.
On the West Rand, the GPG is supporting 577 township enterprises and in Sedibeng, over 250 township enterprises benefit from the provincial government’s procurement spends in the current financial year.
The GPG has given 100 informal car washers innovative car wash equipment through the Eco Car Wash initiative. The province seeks to save water while stimulating entrepreneurship, especially among the youth.
“We are acting together with township communities and investors to turn them into havens of sustainable socio-economic development and empowerment,” said Makhura during his state of the province address.
“The people in the townships need real jobs and thriving businesses where they live. They need state-of-the-art schools, libraries, clinics, hospitals, roads and other social amenities. They need reliable, efficient and affordable public transport. For township residents, the new dawn must represent a major facelift in the infrastructure as well as the look and feel of their townships. The provincial government and municipalities have been the leader in the country in the revitalisation of the township economies.”
The GPG has since launched Township Enterprise Hubs, an important mechanism for creating viable businesses in communities where young people reside. The hubs are in three clusters; automotive, enterprise and industrial.
These hubs primarily target unemployed youth through cooperatives, entrepreneurs and SMEs. Specific businesses are developed within each sector.
For example, the Automotive Hub may include a tyre fitment & alignment centre, a glass fitment and repair centre, an outlet for body parts, spares & accessories, a battery centre and a centre for repair, service and maintenance.
The Gauteng Enterprise Propeller recently launched the Pitching Boost Campaign. The campaign provides townshipbased youth and non-youth SMMEs an opportunity to present innovative business ideas to corporates, investors and other entrepreneurs in order to qualify for business development support.
The Pitching Booster Campaign is targeting SMMEs from Sedibeng, West Rand and Tshwane Regions. Focus was given to Soshanguve, Heidelberg, Lesedi, Merafong, Randfontein and Sicelo townships. The choice of these areas was based on high rate of unemployment.