Gauteng Business 2016 edition

SPECIAL FEATURE
Township Economic Revitalisation
Premier Makhura boosts investment in Ndlelanhle Khuzwayo.
Township enterprises, cooperatives and SMMEs that produce
goods and services that meet the needs of township residents
are at the heart of the Gauteng Provincial Government’s (GPG)
drive to revitalise and mainstream the township economy
through supporting the development of township enterprises, cooperatives
and SMMEs.
The Township Economy Revitalisation (TER) project is integral to
the five-year plan of the provincial government that aims to radically
“Transform, Modernise and Re-Industrialise” Gauteng. The intention is
to build a seamlessly integrated, socially cohesive and economically
inclusive City Region.
This follows the staging last year by the GPG of the Township
Economy Revitalisation Summit, which was preceded by consultations
with more than 50 000 township entrepreneurs from 65 townships.
From these extensive consultations a strategy was created through
which an enabling environment and a detailed programme of action
can be established.
It remains a fact that the level of entrepreneurship in South
Africa is one of the lowest in the world, being ranked 27th out of
59 countries in terms of the primary measure of entrepreneurship.
According to a survey by the
Global Entrepreneurship Monitor
(GEM) in 2012, almost 4 400 small
businesses closed down in South
Africa due to a lack of funding.
Unfortunately, the 2012 GEM survey
also indicated declining levels
of local entrepreneurship, from
a reported 9.1% in 2011 down to
7.3% in 2012. As accentuated in the
Township Economy Revitalisation
Strategy, the majority of the township
enterprises operate on a
small scale and would certainly
have suffered as a consequence
of this drop in performance.
The recent emergence of
shopping malls in the townships
has also had a negative impact on
small businesses. This is one of the
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