Driving the Gauteng Department of Economic Development’s (DED’s) mandate of township revitalisation, MEC for Economic Development, Environment, Agriculture and Rural Development Lebogang Maile reported earlier this month that the department had provided financial support for 643 existing small, medium- sized and microenterprises (SMMEs) over the year, while supporting a further 5 061 with nonfinancial business development interventions.
Tabling the department’s 2014/15 annual report in the Gauteng Provincial Legislature, he added that the Gauteng Enterprise Propeller had provided business development interventions for a further 953 cooperatives, while 983 township-based informal businesses had undergone bespoke training programmes.
“In the year under review, 84 small and emerging businesses were incubated at our renovated industrial hubs in Orlando, Payneville, Garankuwa, Residentia and Chamdor, on the West Rand . . . and are currently receiving businesses advisory services and have access to shared infrastructure and services at these facilities.
“The department has facilitated the incubation of 289 businesses . . . enabling the transfer of skills from big to small businesses, promoting supplier development and creating market opportunities for township businesses,” he commented.
The DED was, meanwhile, accelerating efforts to revive and establish industrial parks and township enterprises in Toekomsrus, Khutsong, Mabopane, Hammanskraal, Ennerdale, Residentia, Katlehong, Garankuwa and Orlando, through which township entrepreneurs would be provided with clustered and cost-effective infrastructure.
Maile noted that the department would soon be engaging with the province’s metropolitan and district municipalities over a special dispensation designed to reduce the cost of rates and service charges for township businesses, particularly those involved in light and heavy industry.
While noting that the department’s philosophy emphasised the importance of development finance and “friendly” loan terms for entrepreneurs, the MEC remained adamant that, in the context of limited fiscal revenue, loan repayments by subsidised start-ups and enterprises were critical.
“We are engaged in a process to review post- investment initiatives to assist us in identifying early warning signs for clients that are in distress and to proactively intervene to create sustainable entrepreneurs in the province,” he said.
Reflecting on foreign investment gains, Maile reported that the Gauteng Growth and Development Agency had facilitated 13 investments from China, India, Brazil, Russia and Portugal in the agroprocessing, property development, business process outsourcing and green energy sectors over the period.