Local businesses weigh in on township economic development bill
The Department of Economic Development, Agriculture and Environment plans to develop local businesses in townships.
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The Department of Economic Development, Agriculture and Environment held a public participation meeting at Vosloorus Civic Centre on November 26 to present and get the public’s input on the draft of the Gauteng Township Economic Development Bill.
According to the department, the bill aims to take deliberate steps to allow townships to become fully fledged commercial zones by streamlining the rules on where and how you can run a business.
The bill also aims to make it easier to open a business and formalise a business in townships, as well as supporting township real estate and the taxi economy.
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The director for inclusive economy, Mathopane Mashaa, said the bill is designed to create enabling conditions for existing township businesses to expand, hire people and open space for new township businesses.
The bill seeks to provide diversity in business ownership, provide an inclusive economy and easy access for new businesses in all sectors of the economy as well as transformative principles driving the township economy.
It is focused on interventions that will be on sectors of the economy with rapid growth potential, transformation and inclusive of social protection of vulnerable groups in society.
Mashaa said the bill will benefit township enterprises and the youth because when you enable township enterprises to grow, they are able to create jobs and hire local people.
“Previously, there was no bill, it was just a strategy and in the policy process. A strategy is important for providing direction regarding what you want to do, but it does not necessarily have the legal power to enforce. The difference is that once this bill is promulgated into an Act it then becomes the law of the province, meaning people who contravene the provisions of the bill can be taken to court,” said Mashaa.
Businesswoman and fashion designer Cuuangcisa Xinindlu said she is happy with the bill, but she is more concerned about implementation.
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“It is redundant that this is how the government wants to interact with us. I think we are at a level where we need more action from them in as much as they required our input to assist in designing the bill better and structuring it to see if it is of service to the people.
“They are finding us at a time where we have real grievances that even if that bill is in the process of being done, we were hoping to have a conversation where they were coming to say this is what a bill is and this is how it is going to benefit you, but instead they are still saying this is what we are trying to do for you,” said Xinindlu.
Afika Connekt Innovation hub president Thulane Mashiya questioned the government on what they are doing to equip people and ensure they have a better understanding and information on business models.
“My suggestion is that we should start from the beginning. Let’s equip people to make them ready so that when the bill comes, they are ready, well informed, have been trained and are compliant,” he said.
“People need to know what a financial statement is, what it consists of and why is it needed, why a BEE certificate is needed so they can be compliant. If you are not teaching them that from the start you are setting them up for failure,” said Mashiya.
Mashaa said the department will include the inputs and comments from the public in the draft bill. The draft will be sent to the provincial legislature to assess and ensure everything was taken into consideration before certifying and promulgating it as an Act.
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