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Township economy Gauteng’s new gold

township

Photo by Bloomberg

9th December 2022

By: Darren Parker

Deputy Editor Online

     

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With gold mining no longer the major economic driver that it once was for Gauteng, the future of the province’s economic growth lies in the development of the township economy, Gauteng Finance MEC Jacob Mamabolo said on November 24.

“Gold is gone and it is not coming back. The Gauteng economy is going to grow in the townships. The opportunity for economic growth lies in turning around the township economy,” he said while presenting Gauteng’s 2022 Medium-Term Budget Policy Statement.

He noted that the signing of the Township Economy Development Act (TEDA) into law in April was an important milestone for the people of Gauteng.

“Through the implementation of this Act, we are now in a better position to unleash the full, untapped potential of the township economy. This will in turn significantly increase Gauteng’s share of the national gross domestic product,” Mamabolo said.

He noted that the TEDA supported efforts towards fundamentally changing the structure of the township economy by promoting local production, the development of small to medium-sized enterprises (SMEs), cooperatives and other township businesses.

He said plans were afoot to expand infrastructure service delivery, which would require the employment of 80 000 people over the next 12 months from Evaton, Westbury, Soweto and Soshanguve to build residential fill-in units in townships.

Mamabolo noted that, during October, the Gauteng Enterprise Propeller, the Industrial Development Corporation, the SA SME Fund and Standard Bank launched the SMME Crisis Partnership Fund, which immediately made R850-million debt funding available to assist township businesses to rebuild and grow.

He said that some of the urgent tasks that the provincial government was implementing in relation to the TEDA included refurbishing and supporting 20 000 stores in townships, as well as the completion of 7 757 fibre installations to create cloud zones for township use.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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