Maropene Ramokgopa, the Presidency’s minister of planning, monitoring, and evaluation, said on Tuesday that government policies should be geared to boost investment in the township economy.
Ramokgopa. said, “We must leverage on our country’s enabling legislation to capacitate, support and accelerate township economies. To harness the full potential of the township economy, it is essential to establish policies that encourage and support small businesses.”
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Ramokgopa remarked during a Brics dialogue on the township economy in Orlando West, Soweto, that the organization presents a unique chance for its five member states to foster mutually beneficial cooperation.
South Africa will host the summit’s 15th edition from August 22 to 24 at the Sandton Convention Centre in Johannesburg.
The Department of small business development and the national planning commission are working with President Cyril Ramaphosa’s red tape team to build a regulatory SMME reform agenda in South Africa with the goal of strengthening the business-enabling environment.
According to the minister, these enterprises’ growth potential is hampered by limited access to capital and a lack of collateral. “Therefore, it is crucial for financial institutions and policymakers to devise innovative ways to provide financial support to budding township entrepreneurs.”
Many townships lack basic infrastructure and services, and inconsistencies in electricity delivery, inadequate sanitation, rising crime rates, and poor road networks impede business efficiency and repel potential investors.
Ramokgopa stated that South Africa will continue to utilize its voice in the Brics to support and contribute to long-term growth and development.
“This is done through increased intra-Brics trade, investment, tourism, capacity building and skills development, among others.”
In terms of the township economy, Ramokgopa stated that the goal is to bring townships to Brics and vice versa.
“Our townships, and Soweto in particular, hold a significant place in our history, representing the enduring legacy of apartheid and segregation. Our townships were created to ensure the stark inequalities in access to basic services, education and economic opportunities exist,” she said.
Townships, she claims, have transformed into lively hubs of enterprise, cultural preservation, resilience, and innovation in recent decades.
“This has led to the emergence of the township economy, which demonstrates the power of harnessing local potential to drive national growth, inclusivity and sustainable development.”
According to Ramokgopa, the township economy has been a focal focus for local economic development in recent years, supporting entrepreneurship and community empowerment.
“Small businesses have emerged, ranging from hair salons to grocery stores, tourism establishments and tech start-ups to arts and crafts workshops.”
These businesses generate money and job opportunities, she says, adding that the township economy suffers continuing challenges despite its significant contributions and potential.
She believes that local economic development should be decentralized by delegating mandates and capabilities to local governments.
“This will enable them to deliver business development services in partnership with provincial and national institutions, which are mandated to maintain an aggregated institutional system.
“Partnerships with existing institutions should be established to provide better infrastructure and technology development.”
She believes that an intervention aimed at local communities should address bulk infrastructure, small company facilities, technology transfer, and other issues. To address these infrastructure and socioeconomic inadequacies, both public and private parties must work together.
South Africa, according to Ramokgopa, has only seven years to shift the trajectory of township economies by speeding current mechanisms to enhance local economic growth, as envisioned in the country’s Economic Reconstruction and Recovery Plan.
