OVERVIEW
Development finance and SMME support Government pledges to spend R4-billion with SMMEs annually.
Credit: 5M2T.
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n a drive to spur economic development in Gauteng’s townships, a Township Economic Development Bill will do away with restrictive bylaws. At the same time, taxi ranks are going to be rezoned and developed to allow for the growth of retail outlets and services such as mechanics and panel-beaters. Data company 5M2T (Five minutes to town) has started offering sophisticated information about the township market. From how many spazas in Soweto have refrigeration units (4 700) to brand loyalty, 5M2T covers 60 000 spazas, salons, barbers and other informal trade outlets in an “in-market audit”. Gauteng has 14 registered co-operative banking institutions serving over 16 000 member-owners, with over R100-million in savings and R150-million in assets. The township market of about 250 000 township households holds enormous potential for collective buying. The Gauteng Growth and Development Agency (GGDA) is linking large companies with small businesses at Special Economic Zones (SEZs). The aim is to create a pipeline for SMMEs and to entrench localisation in sectors such as the automotive industry. The Incubation Centre at Nissan’s assembly plant in Rosslyn north of Pretoria hosts eight new businesses at a time. They receive support through subsidised rental and mentorship and training. The Automotive Industry Development Centre (AIDC), a subsidiary of the Gauteng Growth and Development Agency (GGDA),
GAUTENG BUSINESS 2020/21
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SECTOR INSIGHT A Township Economic Development Bill aims to reduce red tape. manages the centre. The Jobs Fund contributes to financing the project. The City of Johannesburg runs seven SMME hubs where office space, WiFi and advice and training are available for small business operators. About half of South Africa’s formal SMMEs operate in Gauteng and more than half are in the wholesale and retail sector and the accommodation sector. The next most popular sectors are community, social and personal services. The Provincial Government of Gauteng has pledged to
