Education, government partnership, and legislation could help to ensure sustained growth of the Township Economy, as a multipronged approach was essential, Minister in the Presidency, Maropene Ramokgopa, said yesterday.
Ramokgopa is the minister in the Presidency responsible for Planning, Monitoring, and Evaluation (DPME). She was the key speaker at the Township Economy in BRICS dialogue held yesterday.
BRICS represents the world’s leading emerging market economies, namely Brazil, Russia, India, China, and South Africa, and the 15th summit will kick off later this week.
Ramokgopa said education and skills development must be prioritised.
“Providing quality education and training equips township residents with the knowledge and skills necessary to build, expand, and explore new economic sectors. By investing in a skilled workforce, we are in a better position to attract more investors to stimulate economic development,” she said.
Ramokgopa said partnerships between the government, the private sector and civil society were critical.
“In his 2022 State of the Nation Address (SONA), President Cyril Ramaphosa made the impetus for the strengthening of social compacts to address the country’s macroeconomic challenges including low economic growth, growing inflation, and unprecedented unemployment figures.
“Through effective and targeted social compacts, we have the potential to remedy some of the challenges experienced by township entrepreneurs,” Ramokgopa said.
She said government policies should be tailored to encourage investment, while private sector entities can offer mentorship, funding, and market access.
According to Ramokgopa, to harness the full potential of the Township Economy, it was essential to establish policies that encourage and support small businesses.
“Currently, the Department of Small Business Development and the National Planning Commission are collaborating with the Presidency Red Tape team to develop a targeted agenda for regulatory SMME reform in South Africa aimed at improving the business-enabling environment,” she said.
Ramokgopa said some of the critical outputs of this team must be to ensure the country's existing legislation encouraged and supported small businesses by promoting access to finance, education and skills development for township entrepreneurs to overcome obstacles and seize opportunities.
She said the BRICS relationship extended beyond the governments of the member countries. Bodies like the BRICS Business Council, BRICS Women’s Business Alliance, BRICS Think Tanks Council and BRICS Civil Forum ensured that the opportunities of this association are explored across society.
“The relationship seeks to promote people-to-people contact, including among youth formations. Among other things, this person-to-person contact enhances travel and tourism between BRICS countries. Therefore, townships within BRICS nations must also benefit from the opportunities of this association.
“The Township Economy is not confined to one individual nation. It is a collective endeavour. Through innovative entrepreneurship, townships have become engines of economic vitality, contributing significantly to the nation’s GDP (gross domestic product) and fostering job creation,” she said.
Ramokgopa said one of the founding values of BRICS was the need to restructure the global political, economic, and financial architecture to be more equitable, balanced, and representative.
“The Township Economy in South Africa has the potential to contribute to that cause. We must rewrite the narrative of our townships and create a transformative, more inclusive future for all.
“Let us seize this moment to foster innovation, promote entrepreneurship, and build a thriving Township Economy that stands as a catalyst for development,” she said.
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