Bill seeks to jumpstart township economy
The bill is ready for tabling following public consultations
The Gauteng government is steaming ahead with its plan to make the historic Township Economic Development Bill to be gazetted into law.
Premier David Makhura said the provincial government has completed public consultations on the Township Economic Development Bill.
“We will table the bill in April for consideration by the Gauteng legislature. This year should see the passing of a historic piece of provincial legislation that will remove the institutional and regulatory obstacles that hinder the development and growth of township businesses,” he said.
The bill seeks to create new regulations and bylaws that will make it easier and cheaper to formalise more than 90% of informal businesses, enabling these businesses to access financial and non-financial support.
It will also set up an institutional and legal mandate for the Township Economy Partnership Fund that will pool public and private sector resources to fund township businesses, especially small business and start-ups that find it difficult to access funding from financial institutions.
“The seed funding is already available. Details will be announced by the MEC for finance and the MEC for economic development,” he said.
The bill also seeks to create a legal framework for the government and municipalities to support the development of township real estate.
National Federation Chamber of Commerce and Industry (Nafcoc) secretary-general Stephen Sikhosana said they backed the Gauteng government’s township economy strategy and believed that it will empower businesses once it is gazetted into law.
“The township economy is forever dynamic and you see this by the large number of residential and commercial properties being built there frequently.
“This shows the township economy always needs to be taken seriously and Gauteng government could partner with Nafcoc to implement the Township Economic Development Bill once it becomes an act.”
Sikhosana added that developing the township economy could assist resuscitate industrial parks in townships.
Said Makhura: “We are focusing on our high-growth priority sectors and infrastructure investment projects that will unlock the transformation, modernisation and re-industrialisation of the different corridors and districts of our city region.”
The government is improving special economic zones and the township economies to help the province regain lost ground following the negative effects of the lockdowns.
“As the industrial hub of Sub-Saharan Africa, the Gauteng city region has adopted a strategic posture of leading the way in the industrialisation and re-industrialisation of our country and continent.
“The development of the single multi-tier special economic zones is the primary anchor of our industrialisation agenda. It is our goal to have at least one zone in each district or metro, specialising in distinct sectors and industries,” said Makhura.
The zones are expected to create thousands of jobs.
The government has put about R3bn into bulk infrastructure for the Tshwane automotive special economic zone and has committed to create strategic economic infrastructure that will lead to investment by the private sector.
“The progress at the Tshwane automotive special economic zone is inspiring.”
Makhura said the government was investing R3.3bn in infrastructure that has unlocked R4.3bn in investment from suppliers and R15.8bn from Ford Motor Company. “This is the biggest foreign direct investment since the 2010 World Cup. Tshwane automotive zone will produce 200,000 vehicles by 2022.
“Working with the Mamelodi community, entrepreneurs and SMMEs, the Tshwane automotive zone is providing non-financial and financial support to 262 SMMEs, grades 1-7. Over R1.7bn [47% of infrastructure spend] worth of SMMEs is already allocated and another R531m of work will be allocated to township SMMEs for the build programme to construct the first set of factories.
“In addition, 8,600 construction-related jobs have been created during phase one.”
Makhura said the Tshwane automotive zone was a model for a social pact between different sectors. “It is an example of how government can cut red tape and make quick decisions that are able to attract and safeguard investment,” he said.
Makhura said that within a year, 3,288 new permanent jobs would be created at this zone, 1,200 by Ford and 2,088 by suppliers.
Ekurhuleni is the manufacturing and aviation hub.
“We opened the OR Tambo International Airport industrial development zone in March 2019, which focuses on jewellery manufacturing and agroprocessing. “The implementation of four precincts of the zone attracted R1.5bn in investments. This zone is a key component of the multi-located Ekurhuleni zone which will attract more value-adding industrial and electronic manufacturers and agro-processors.”