Township Economy can benefit from integration, capacity building and collaboration with entities such as Gauteng Enterprise Propeller (GEP), Small Enterprise Development Agency (SEDA), Small Enterprise Finance Agency (SEFA), and Southern African International Trade Exhibition (SAITEX). These connections are important for learning, cross-border opportunities and economic growth.
Dr. Mthokozisi Tshuma, a policy specialist for comprehensive growth in the United Nations Development Programme, noted that “government should partner with the private sector to implement support programs and increase financial support.” He adds: “In collaboration with the government, the private sector can revitalize corrupt inner-city areas and implement mixed-residential towns to promote appropriate spatial planning.”
The issue of integrating the township economy has long been on the government's agenda. For example, the Gauteng Township Economy Revitalization strategy recognizes this aspect by noting that township companies can “support the community market through the formation of consumer cooperatives that incorporate spaza shops and others, and can support the community market to ensure that they provide and produce competitive quality and good quality.” According to the strategic document, “The government is committed to ensuring links are established in the supply chain by linking township enterprises with production networks that operate at scale in the mainstream economy.”
Connecting the unofficial sector
Phetogo Kubheka, event director responsible for the transportation and trade portfolio at the DMG event, which hosts the annual South African International Trade Exhibition, commented: Saitex offers a dynamic arena for companies to showcase their products, creating important connections with industry leaders and potential investors. By bringing together a wide range of stakeholders under one roof, we highlight the important impact of such platforms in fostering business outlook and driving economic progress, particularly in the areas of small, medium, micro-enterprise (SMME) and towns. ”
Kubheka said: “SMMES' involvement in the global economy is essential to driving innovation, accessing new markets and promoting economic growth,” she adds: “Saitex illustrates how the platform bridges the gap between local SMMEs and global opportunities, ensuring it thrives in an interconnected economic environment.”
For the most part, it is suggested by the infrastructure that Khubeka suggests that the above already exists in South Africa. For example, the Township Economy Partnership Fund supports Gauteng's vulnerable small township businesses that do not have access to funding from private funding agencies, governments and other business support programs. The fund is a partnership between the Industrial Development Corporation, GEP and the Gauteng Economic Development Bureau.
Seda and Sefa are important in fostering growth within the town's economy. For example, the trade industry agency SEDA is required to provide information, counseling and business support services specifically targeting micro and small businesses. SEFA, on the other hand, ensures that small and medium-sized businesses that do not have access to commercial credit can obtain development funds.
When it comes to cross-border opportunities, businesses in the township economy can benefit from insights and learning opportunities at exhibitions such as Saitex. At the 2023 Saitex Trade Expo, a masterclass dynamic three-day program brought together business leaders, financial institutions and successful township entrepreneurs. Experts in these industry explored the latest innovations, creative ideas and practical insights designed to drive business growth and strengthen the economy of the local town. Theme sessions include Ekasi Talks, SMME Focus Day and an e-commerce workshop.
