Free State launches township revival plan
One of the most glaring aspects of township life in the Free State is the neglect over the years of township economies, but this is about to be remedied.
If plans by Free State MEC for economic, small business development, tourism and environmental affairs (Destea), Makalo Mohale come to fruition, a huge economic revival is going to happen in the coming months.
Mohale is embarking on an interactive discussion with township business owners and unemployed graduates to tackle the challenges besetting young entrepreneurs in the Dihlabeng Local Municipality in the eastern Free State.
“As Destea in the Free State, we are undertaking an initiative to build formidable and solid businesses in our townships to create employment, boost the economy as well as eradicate poverty,” said Mohale.
“The main objective of this intervention is not only to boost enterprises but to also deal with the triple challenge of poverty, inequality and unemployment, and encourage entrepreneurs to start sustainable businesses that create jobs.”
Mohale will engage with small businesses such as salons, tuckshops, fashion, agriculture and logistics businesses, among others, on ways to resuscitate the ailing township business sector, which suffered a huge blow during the Covid-19 pandemic. “Many businesses in townships found themselves on their knees due to Covid-19 and many enterprises had to close down,” he said.
The MEC will also be engaging unemployed graduates who studied economic and management sciences, science and technology as well as engineering to assist businesses become more innovative. Mohale will also relaunch the programme of placing graduates at different small businesses to gain practical work experience and render services such as marketing, bookkeeping and technical support to SMMES.
Dihlabeng Local Municipality covers towns such as Bethlehem, Paul Roux, Clarens, Rosendal and Fouriesburg.
Early this year, Destea launched the Integrated Local Economic Development and Transformation Bill to, among others, limit the ownership of township businesses by foreign nationals and foster localisation. If the bill passes as proposed, it will introduce the following changes:
• Local municipalities will be required to maintain ownership quotas of not more than 20% of foreign ownership.
• The big retailers will be required to have a 30% quota of locally produced goods on their shelves.
• The MEC will be expected to formulate, coordinate and implement policies and programmes for promoting and developing township-based enterprises.
The bill also lists 28 economic activities reserved exclusively for people with “permanent residency status”. The targeted businesses include bars and nightclubs, chisanyamas, cellphone repair shops, courier services, beauty salons, tuck shops and mechanics.